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Why is the Core Lithium (ASX: CXO) share price halted?

With its share trading on hold, Core Lithium says it could be producing lithium as soon as 2H 2022.
The post Why is the Core Lithium (ASX: CXO) share price halted? appeared first on The Motley Fool Australia. –

The Core Lithium Ltd (ASX: CXO) share price won’t be going anywhere on Monday after the company requested a trading halt.

What’s the trading halt for?

The trading halt was requested on the basis of a pending capital raising announcement.

The company advised its shares will remain halted until Wednesday, 11 August or until the announcement is released to the market.

The pending capital raising comes right after the Core Lithium share price surged 14.29% last Friday to a 7-month high of 36 cents.

June quarterly activities report

According to the company’s activities report, Core Lithium had a cash and cash equivalents position of $38.18 million at the end of the June quarter.

During this period, the company delivered a number of milestones including the completion of its definitive feasibility study (DFS) for its Finniss lithium project. The study was a finalised extension scoping investigation outlining long-term lithium production plans for Finniss and secured a port operating agreement at Darwin Port.

Core Lithium has branded itself “Australia’s most advanced new lithium project on the ASX” and “at the front line of new global lithium production”.

The company is targeting construction to begin in 2H 2021 with production to commence as soon as 2H 2022.

Definitive Feasibility Study

Core Lithium believes its DFS demonstrates the Finniss Project’s economics as “compelling, with low capital costs and competitive operating costs that result in strong operating margins and rapid payback”.

The DFS highlights an average annual production of 175,000 lithium spodumene per annum with a mine life of 8 years and a payback period of 2 years.

The company is currently undergoing a stage 1 extension scoping study to increase production and add a further 2 years to mine life.

Looking ahead, the company recently announced exploration targets with the “potential to significantly add mineral resource tonnes and support further extensions and potential stage 2 expansion of Finniss”.

The post Why is the Core Lithium (ASX: CXO) share price halted? appeared first on The Motley Fool Australia.

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More reading

Why the Core Lithium (ASX:CXO) share price is charging 5% higher today
Why the Core Lithium (ASX:CXO) share price is advancing 6% today

Motley Fool contributor Kerry Sun owns shares of Core Exploration Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Bruce Jackson.

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