Shares of Core Lithium, an Australian mining company, are experiencing their largest one-day decline since November. This comes after the company announced that its projected production for fiscal 2024 would be lower than what was indicated in feasibility studies.
At the start of Monday, Core Lithium’s shares were down 13% at 76 Australian cents (51.2 U.S. cents). The company anticipates producing 80,000-90,000 metric tons of spodumene concentrate between June 2023 and June 2024. This revised forecast is attributed to lower lithia recoveries, a revised mine plan, and more conservative assumptions influenced by recent wet weather conditions.
In the company’s 2021 definitive feasibility study for the Finniss lithium project in northern Australia, an average annual production of 175,000 metric tons was projected over an eight-year period. However, Core Lithium’s Chief Executive, Gareth Manderson, reassured stakeholders that measures are being taken to enhance operating performance and deliver higher mining rates, improved lithia recoveries, and commercialize the project.
Furthermore, Core Lithium stated that overall production for fiscal 2025 would also be affected due to a three-month gap in ore-feedstock supply and processing plant capacity constraints.
It remains to be seen how the company will address these challenges and strive for better results in the future. For any updates or developments, please stay tuned.
