Core Lithium has unveiled its strategic repositioning with the completion of a comprehensive restart study for its Finniss Lithium Project. The company announced significant cost reductions and operational improvements in its annual report for the financial year ending 30 June 2025.
Major Cost Reductions Drive Competitive Position
The restart study achieved substantial cost improvements across all operational areas. Mining costs decreased by 40% while processing costs dropped by 33%. These reductions combine to deliver highly competitive unit operating costs over a projected 20-year mine life.
Pre-production capital expenditure requirements fell by 29%, enhancing the project’s financial attractiveness. The company expects unit operating costs to range between $690-$785 per tonne on an FOB SC6 equivalent basis, excluding royalties.
Core Lithium achieves significant cost reductions across operations
Strategic Infrastructure Acquisition Completed
Core Lithium secured full ownership of all site infrastructure through strategic acquisitions during the period. The company acquired the crushing circuit for $19.5 million, eliminating third-party contracts and operational dependencies. This acquisition enables simplified operations and reduces future crushing costs by approximately 50%.
Chief Executive Officer Paul Brown highlighted the significance of these changes. “The key drivers of this significant improvement are the revised operating model for the site, transition to 100% ownership of all infrastructure and improved throughput and recovery from the DMS plant”.
The Finnis Lithium Project including key deposits and infrastructure
Enhanced Processing Capabilities Drive Efficiency
The processing plant upgrade programme targets throughput increases of 20% to 1.2 million tonnes per annum. Recovery rates improve to an average of 78% through enhanced DMS plant configuration. These improvements eliminate the need for flotation circuits, reducing capital requirements while maintaining product quality.
The upgraded system incorporates several technical enhancements. These include 10mm plant feed sizing, gravity separation circuits for ultrafine material processing, and reconfigured rolls crusher systems.
Mineral Resources and Reserves Show Growth
Ore reserves increased by 16% with the restart study, underpinning the first decade of operations. The Grants ore reserve doubled to 1.15 million tonnes at 1.31% lithium oxide through transitioning from open pit to underground mining methods.
BP33 ore reserves grew by 7% to 9.29 million tonnes at 1.31% lithium oxide following updated modifying factors. Total Finniss ore reserves reached 15.2 million tonnes at 1.26% lithium oxide with the addition of Carlton reserves.
Core Lithium’s ore reserves demonstrate substantial growth
Exploration Targets Demonstrate Future Potential
Exploration activities identified significant expansion opportunities across the broader tenement package. The company established a high-grade lithium exploration target at Blackbeard of 7-10 million tonnes at grades between 1.5-1.7% lithium oxide.
Combined exploration targets across Blackbeard and BP33 Deeps total 10.9-16.5 million tonnes at similar grade ranges. These targets provide substantial upside potential beyond the current mine plan.
Underground Mining Strategy Capitalises on Geology
The restart plan focuses on underground mining methods suited to the high-grade, steeply dipping ore bodies characteristic of the Bynoe Pegmatite Field. This approach significantly reduces waste movements and enables superior feed quality control to the processing plant.
Underground operations target continuous, high-grade mineralisation located close to existing processing infrastructure. The first ten years of mining schedules draw 94% of feed from established ore reserves.
Twenty-year mine life plan demonstrates long-term operational sustainability
Financial Position Remains Strong
Core Lithium maintained a healthy balance sheet with $23.5 million cash and no debt at year end. Operating activities consumed $43.9 million in cash during the period, including site maintenance, corporate costs, and operational cessation expenses.
The company completed strategic payments including $10 million for the crushing circuit acquisition and $3.1 million to terminate the Yahua offtake agreement. These investments support future operational flexibility and cost competitiveness.
Environmental and Safety Performance Maintained
Operations maintained exemplary safety performance throughout the care and maintenance period. The company recorded zero lost time injuries during the year. Environmental compliance remained strong with no licence exceedances recorded.
Water management during the Northern Territory wet season proved successful. The team discharged 433 megalitres of water in compliance with licence conditions, with 392 megalitres discharged via siphoning to minimise diesel consumption.
Strategic Partnerships and Market Positioning
The company settled its existing offtake agreement with Yahua International Investment and Development Co. through a comprehensive deed of release. This termination unlocks previously contracted offtake tonnes and provides flexibility for engaging new strategic partners.
Core Lithium acquired 7.6 million shares in Charger Metals through share exchange arrangements. Charger holds adjacent tenements in the Bynoe Pegmatite District, presenting potential synergy opportunities.
Leadership Team Strengthens Capabilities
The board welcomed Alicia Sherwood as Non-Executive Director during the period. Sherwood brings extensive experience in large-scale resources projects, operational risk management, and stakeholder engagement.
The executive team led by Chief Executive Officer Paul Brown demonstrated resilience in navigating market downturns. Brown previously held senior positions at Mineral Resources and Hastings Technology Metals.
Market Outlook and Restart Considerations
Chair Greg English acknowledged current challenging market conditions while emphasising cyclical nature of commodity markets. “While these conditions are difficult, they are also cyclical. Core has acted decisively to preserve value, reposition the business, and ensure we are prepared to restart operations when the market stabilises”.
The company maintains operational readiness while monitoring market conditions for restart opportunities. Any restart decision requires attractive project financing solutions and improved market conditions among other factors.
The restart study positions Finniss as a competitive, low-cost operation capable of operating through commodity cycles. Infrastructure investments of more than $250 million combined with high-grade mineral endowment retain significant value for future operations.
