Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Can Core Lithium shares recover to all-time highs?

Core Lithium’s share price has fallen some distance since record highs last year. Can it recover this lost ground in 2023?

core lithium Source: Bloomberg

Core Lithium (ASX: CXO) shares hit a record AU$1.67 in early November before the tumbling lithium price saw the ASX company fall to as low as AU$0.79 by 24 March 2023. At exactly AU$1.00 today, the company has made a start to the recovery, buoyed by first sales and lithium’s recovery.

For context, lithium carbonate was trading for 597,500CNY/T in early November, fell to 165,500CNY/T by late April 2023, and has since recovered to 312,500CNY/T. The end of Chinese government EV incentives, in addition to overstocking by battery companies including CATL, saw demand for the silvery-alkali metal slump in Q1.

But the wider picture could be more buoyant.

Macquarie considers that global lithium demand will rise by 76% to 1.57 million tons between 2022 and 2025 — and China remains dependent on imports for 55% of its lithium needs. And the country has also placed circa 29% of its domestic lithium salt production at chance of disruption, after its ‘lithium capital’ Yichun announced a crackdown on unlicensed and environmentally damaging mining.

Core Lithium shares: quarterly activities

In late April, Core reported on activity between January to March. In this time, the dense media separation plant was completed, with first concentrate produced in February 2023. A maiden 3,500 tonne spodumene parcel was transported to nearby Darwin port in March, and full activities were continuing after the wet weather disruption.

In terms of sales, the first cargo of 15,000dmt of spodumene Direct Shipping Ore was shipped in January. With payment already received, the company has also secured prepayment of an additional 18,500 tonnes from Yahua.

And exploration news, results from the 2022 drilling saw the flagship Finniss’ Mineral Resource upgraded by a whopping 62%, with the lithium company now expending an additional AU$25 million on continued drilling to target additional mine life and expansion potential.

At the end of the quarter, the AU$1.88 billion company held AU97.8 million in cash excluding prepayments, with first revenue of AU$20.1 million hitting the accounts in January.

Maiden shipment and BP33 authorisation

In mid-May, Core announced that the Northern Territory government had approved the BP33 underground project, which is the second proposed mine at Finniss. Excitingly, approval of the mining authorisation and the Mine Management Plan represents the final step before the board takes an investment decision. BP33 is just five kilometres from the DMS plant and has a mineral resource of 10.1MT at 1.48% lithium hydroxide.

Further, the company noted that loading of the first shipments at Port Darwin had finally commenced, with Deputy Chief Minister and Minister for Mining and Industy, Nicole Manison, attending the loading of the initial 5,500 tonnes.

CEO Gareth Manderson enthuses that this was a ‘significant milestone,’ and further that the ‘focus now is to complete commissioning of the DMS plant at Finniss and ramp up our integrated operation.’

A week later, the company announced that it had approved early works funding for BP33 worth between AU$45 million and AU$50 million, with initial construction awarded to Northern Australian Civil. A final investment decision is to be made in Q1 CY24, but current numbers mean a positive decision could be likely.

Manderson notes that this represents a ‘positive, incremental investment decision that allows initial works to be undertaken while the feasibility study is completed...we will continue focus on the safe ramp up of the Grants open pit and concentrate production through the DMS plant.’

Where next for Core Lithium shares?

Core Lithium has caught the attention of short sellers in 2023, with Citi analysts arguing that the shares are only worth AU$0.75 based on a price comparison to its net asset value, which is higher than peers. Meanwhile, Macquarie maintains an ‘overweight’ rating on the ASX lithium stock alongside an AU$1.30 price target.

The company is now producing and in an expansionary phase. If lithium continues to recover, a recovery to Macquarie’s price point, and even beyond to new highs, seems potentially feasible.

But early stage mining is not risk-free.

Take your position on over 13,000 local and international shares via CFDs or share trading – all at your fingertips on our award-winning platform.*

Learn more about share CFDs or shares trading with us, or open an account to get started today. *

Winner of ‘Best Multi-Platform Provider’ at ADVFN International Finance Awards 2022


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.