Core shares slide 9.6% after mothballing mine
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More news: Shares in Core Lithium have dropped almost 10% by lunchtime after the company announced it would halt mining at one mine and delay early works at another due to weak lithium prices.
CXO shares are fetching $0.235, a long way from the November 2022 all-time high of more than $1.86.
Core Lithium suspends mining after prices plummet
The news: ASX-listed Core Lithium has suspended mining at its Grants open pit mine south of Darwin, blaming the weak lithium price. Core said early works at a second potential mine, called BP33, will pause until market conditions improve. Discretionary spending will also be reduced.
The context: The lithium price has dropped by more than 85% in the past 12 months, according to the Aussie miner. The company has conducted a strategic review to reduce costs. Core will keep processing existing stockpiles and has enough to feed its concentrator until mid-2024 without further mining. The business said its Finniss operation, which spans the mine sites, was likely to record an impairment in first-half earnings.
What they said: "While suspending mining operations is a difficult decision, processing of ore stockpiles will continue to generate revenue and we will focus on managing our cash reserves prudently. We are working to put the business in the best position possible to recommence mining and proceed with BP33 when market conditions improve," chief executive Gareth Manderson said.
The source: ASX Announcement
