The Core Lithium Ltd (ASX: CXO) share price has finished the day significantly up following a positive market announcement.
At market close, the lithium producer’s shares were trading at 24 cents a pop, up 6.67%.
What was announced?
According to its announcement, Core Lithium has entered into an agreement with Darwin Port Operations Pty Ltd (DPO).
The 5-year Port Operating Agreement (POA) gives Core Lithium access to the port’s facilities to export its products. It covers the company’s direct ship ore (DSO) and spodumene concentrate.
Port facilities include a truck dump, ship loader and conveyor, and berths for vessels.
Core Lithium’s wholly-owned subsidiary Lithium Development will supply all labour to operate the facilities when handling its product.
The agreement follows a non-binding deal signed by Core Lithium and DPO in early 2017.
Core Lithium said the short distance on existing roads from the company’s Finniss project to Darwin’s port means minimal capital and low operating costs on haulage. The company estimates it has one of the lowest logistics costs among hard-rock lithium miners and developers in Australia.
Core Lithium managing director Stephen Biggins said:
Access to key infrastructure like Darwin Port and the capital city of Darwin in northern Australia enables Core to build one of the most capital efficient and cost competitive hard-rock lithium projects in the world.
With a successful FID expected in coming months, Core is aiming to commence export of high-quality lithium concentrate from Darwin Port by the end of next year.
Core Lithium share price summary
In the past year, Core Lithium shares have surged by 300%, with year-to-date performance putting the company’s value around 65% higher. The Core Lithium share price reached an all-time high of 42 cents in early January this year.
The company has a market capitalisation of around $281 million, with more than 1.1 billion shares on its registry.