Why is the Core Lithium share price outperforming today?

The company released its quarterly activities report this morning.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The Core Lithium share price is outperforming on Monday, gaining 3.7% to trade at $1.39
  • Its gain comes on the back of the lithium favourite's quarterly report 
  • The quarter just been saw the company release exciting news of its lithium and gold exploration activities

The Core Lithium Ltd (ASX: CXO) share price is in the green after the company dropped its latest quarterly activities report.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium favourite are currently up 3.73% on the back of the update, trading at $1.39.

In comparison, the ASX 200 is 1.10% higher right now while the S&P/ASX 200 Materials Index (ASX: XMJ) has slipped 0.02%.

Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery

Image source: Getty Images

Core Lithium share price lifts on quarterly update

Here are the key takeaways from the ASX lithium company's activities over the September quarter:

  • Used $3.75 million of cash in operating activities
  • Ended the quarter with $95.5 million in cash and equivalents
  • Appointed Gareth Manderson Core Lithium CEO
  • Worked towards inaugural lithium spodumene DSO shipments and maiden spodumene concentrate

The three months that ended 30 September were a busy period for Core Lithium.

Not only did the company welcome its new CEO, it uncovered spodumene ore at Grants Open Pit, increased its mineral resources and ore reserve estimate at its flagship Finniss Project, and updated the market on gold exploration activities at the project.

The company expects Finniss will see its maiden spodumene concentrate in the first half of 2023.

What else has been happening with the lithium favourite?

Of course, plenty of exciting news from Core Lithium has popped up more recently.

The company raised $100 million through a placement in which it offered shares for $1.03 apiece earlier this month.

It also announced the first sale of a Finniss spodumene DSO product, tendered through a digital exchange platform.

Finally, Core Lithium and electric vehicle giant Tesla Inc (NASDAQ: TLSA) walked away from a deal that could have seen Tesla buying up to 110,000 dry metric tonnes of Finniss spodumene concentrate last week. The pair had been in talks over the offtake agreement since March.

But Core Lithium didn't seem bothered by the failure to reach an agreement. Manderson commented on the defunct deal, saying:

The recent DSO sale, predicted commencement of lithium concentrate sales in [the first half of] 2023, and an increasing lithium price environment indicate that Core Lithium is well positioned to capitalise on the high demand and current shortage of available battery grade lithium spodumene concentrate.

Core Lithium share price snapshot

The Core Lithium share price performed well through the September quarter, gaining 15% in that time.

The stock is also currently more than 121% higher than it was at the start of 2022 and nearly 149% higher than it was this time last year.

Comparatively, the ASX 200 has fallen 10% year to date and 7% over the last 12 months.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Two miners standing together with a smile on their faces.
Resources Shares

These are the best ASX 200 mining shares to buy in March: Morgans

These mining shares are on Morgans' best ideas list in March.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Rio Tinto share price dips despite copper mega-mine milestone

Rio Tinto owns 66% of what will soon become the world's fourth-largest copper mine.

Read more »

Miner looking at his notes.
ESG

'Not sure if that's the way we should go': Why BHP shares are making news today

BHP is trialling renewable diesel made from Hydrotreated Vegetable Oil (HVO) at its Western Australian Yandi iron ore mine.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Resources Shares

Are Fortescue shares back on the menu amid job cuts?

Can cost reductions be the key to driving Fortescue ahead?

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Could buying Fortescue shares at under $22 make me rich?

The iron ore miner Fortescue has seen volatility. Is it time to buy?

Read more »

Australian Strategic Materials employee wearing a hard hat at a mine looks into the distance as he checks a folder.
Resources Shares

Sayona Mining share price dumps 6% amid lithium lows

Lithium prices have fallen to their lowest level in more than a year.

Read more »

Rede arrow on a stock market chart going down.
Resources Shares

Why are ASX 200 lithium shares falling so hard today?

The lithium carbonate price has fallen to its lowest level in more than a year.

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Resources Shares

Why is the BHP share price taking a flogging on Friday?

The commodity growth engine may not be firing on all cylinders.

Read more »