Core Lithium (CXO) - DFS Allows Funding Talk to Begin in Ernest

Interview with Stephen Biggins, MD of Core Lithium (ASX:CXO)

Our previous interview: https://youtu.be/_gy8rKofyh8

Core Lithium Ltd is well positioned to be Australia’s next lithium producer, developing one of Australia’s most capital-efficient and lowest-cost spodumene lithium projects; the Finniss Lithium Project, located near Darwin Port in the Northern Territory, Australia.

In 2021, Core released a Definitive Feasibility Study and Scoping Study on Finniss, the highlights of which included production of an average 173,000tpa of high-quality lithium concentrate at a C1 Opex of US$364/t and A$89m Capex through simple and efficient DMS (gravity) processing of some of Australia’s highest-grade lithium Mineral Resources, along with an initial 10 year mine life.

Core Lithium has released their Feasibility study this week which confirms that they are construction ready to build a low risk, long term, high quality Lithium project in Northern Australia with excellent economics, low CapEx and very competitive operating costs.

The market has reacted positively to the release of the Feasibility study and finance markets are keen to support the project. Core Lithium has $40M in cash in the bank and they are currently negotiating further off-take agreements and alongside those is significant customer project finance support.

This leaves the company with a relatively small financing task in order to finance the project and they have a number of parties keen to prepare a debt finance package for the project going towards production. Core Lithium aims to get the financing in place by the end of 2021 and with several options available, just need to select the right one for the company.

The project is now ready to build, fully approved, ready to go. As Core Lithium moves towards production, the project will be further de-risked and company valuation will undoubtedly increase.

0:00 - Company Overview
0:30 - DFS Results Out, Market Reaction as Expected?
1:14 - The Big Question: Financing Options & Timing
4:27 - Means for Resource Increase & Extending the Life of Mine
5:56 - Highlights of the DFS
6:57 - Scale of Ambition: How Big They Need to Get to Become a Meaningful Producer?
9:00 - Buyers, Brokers, Bankers: Understanding the Market & Supply/Demand Fundamentals
15:44 - Meeting Expectations: What's to Come for Core Lithium?
18:11 - End of Interview

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