Core Lithium (ASX: CXO) has announced positive results from a new study, reinforcing the global competitiveness of its Finniss lithium project near Darwin. The study outcomes have repositioned Finniss as a highly attractive, low-cost operation with an estimated 20-year lifespan. The report emphasizes the company’s production plan, highlighting that 94% of the first 10 years are supported by substantial ore reserves. Core Lithium’s underground mining strategy, which targets the project’s high-grade orebodies, was also supported by the report.
According to Core Lithium CEO Paul Brown, the study outlines a lower-cost, longer-life, and scalable operating plan that is projected to generate $1.2 billion in free cash flow, representing a sixfold return on pre-production capital. The study identified key plant upgrades, including enhanced screening, affordable crushing solutions, and the addition of a gravity circuit, all designed to improve recovery and reduce contaminants while maintaining low capital costs. These upgrades are expected to enhance the resilience of the Finniss operation against price volatility, establishing it as a reliable source of high-quality spodumene concentrate. The company also terminated a legacy offtake agreement with Yahua Group, a major lithium hydroperoxide supplier, for approximately $3 million. This decision allows for greater flexibility in securing strategic funding to support the Finniss project restart.
