Core Lithium Unveils 20-Year Finniss Restart Plan with Major Cost Cuts
Core Lithium has repositioned its Finniss Lithium Project as a low-cost underground operation with a 20-year mine life, slashing operating costs by a third and boosting production capacity. The company is advancing strategic funding while unlocking flexibility through a key offtake agreement termination.
- Finniss Lithium Project repositioned as 20-year low-cost underground mine
- Operating costs cut by 33% to $40–$46 per tonne with 7% production increase
- Ore Reserves of 10.73 million tonnes at 1.29% lithium oxide underpin first 10 years
- Acquisition of crushing plant completed, halving future crushing costs
- Termination of Yahua offtake agreement via $3.1 million payment to unlock sales flexibility
A New Chapter for Finniss
Core Lithium Ltd (ASX – CXO) has delivered a transformative update on its Finniss Lithium Project in the Northern Territory, unveiling a comprehensive Restart Study that repositions the operation as a highly attractive, low-cost underground mine with a projected 20-year life. This strategic pivot follows extensive work to optimize mining and processing plans, resulting in a significant reduction in operating costs and an increase in production capacity.
The study highlights a simplified and debottlenecked process flowsheet that has cut operating costs by approximately 33%, bringing them down to $40–$46 per tonne from $69 per tonne previously. This cost efficiency is paired with a 7% boost in production, targeting a nameplate output of 205,000 tonnes per annum of spodumene concentrate equivalent (SC6), positioning Finniss competitively in the global lithium market.
Robust Reserves and Infrastructure Ownership
Core Lithium’s confidence in the project is underpinned by Ore Reserves of 10.73 million tonnes at 1.29% lithium oxide, supporting the first decade of operations. Notably, the company has finalized the acquisition of the crushing plant, transitioning to full ownership of all site infrastructure. This move is expected to halve future crushing costs, further enhancing the project’s cost profile and operational control.
Financially, Core closed the quarter with $23.5 million in cash, down from $29.8 million at the end of March 2025, reflecting expenditures related to care and maintenance, exploration, and a one-off $3.1 million payment to terminate an existing offtake agreement with Yahua International Investment and Development Co. This termination frees Core from previous contractual constraints, allowing greater flexibility to pursue new strategic partnerships and offtake arrangements.
Strategic Funding and Market Engagement
Core Lithium is actively progressing a strategic funding process, advised by Morgan Stanley, aimed at advancing the Finniss restart with minimal shareholder dilution. The company recently hosted equity analysts and investors on-site, showcasing the value creation opportunities identified through the Restart Study and reinforcing market confidence in the project’s potential.
Exploration efforts continue alongside the restart plans, with drilling programs planned at the Blackbeard deposit and ongoing evaluation of regional lithium and gold targets, including the Shoobridge Gold Project. These initiatives reflect Core’s commitment to expanding its resource base and diversifying its portfolio amid favourable commodity price environments.
Sustainability and Operational Readiness
Core Lithium maintains strong environmental and safety standards, reporting no environmental exceedances or safety incidents during the quarter. Efficiency improvements in mine water management, including the installation of a submersible pump and increased use of siphons, have reduced diesel consumption and lowered unit costs for dewatering, aligning with the company’s sustainability objectives.
With a cleansed balance sheet, a capital-efficient restart plan, and strategic flexibility unlocked, Core Lithium is well positioned to advance Finniss towards production, offering investors a compelling story of operational transformation and growth potential in the critical minerals sector.
Bottom Line?
Core Lithium’s Finniss restart plan marks a decisive step towards a cost-competitive, long-life lithium operation, but upcoming funding and exploration results will be critical to sustaining momentum.
Questions in the middle?
- How will Core Lithium structure its upcoming strategic funding to minimize dilution?
- What impact will the termination of the Yahua offtake agreement have on future sales volumes and pricing?
- Can exploration success at Blackbeard and other targets extend Finniss’s mine life beyond 20 years?
