Core Lithium (ASX:CXO) share price gains after project’s positive news

Core Lithium’s Finniss Project has been found to be one of Australia’s least carbon-intensive lithium mines. Here are the details

| More on:
investor wearing a hard hat looking excitedly at a mobile phone representing rising iron ore price

Image source: Getty Images

Shares in Core Lithium Ltd (ASX: CXO) are gaining today while the company is celebrating its Finniss Lithium Project’s sustainability evaluation results. At the time of writing, the Core Lithium share price is 24 cents – 2.17% higher than its previous close.

Let’s take a look at the latest news from Core Lithium.

One of Australia’s least carbon-intensive lithium mines

Core Lithium has announced its Finniss Lithium Project has been found to have less scope 3 emissions per tonne of product produced than other Australian lithium projects.

Additionally, only one noted Australian lithium project had fewer scope 1, 2, and 3 emissions per tonne of product produced than the Finniss Lithium Project.

Scope 1 emissions are from a company’s direct business, while scope 2 emissions are from creating the power a company uses. Finally, scope 3 emissions are those found in the rest of a company’s value chain.

The Finniss Lithium Project’s location means its emissions from transport are much lower than other lithium projects. It lies just 25km from a port, a power station, a gas source, and a railway. It’s also just 1 hour’s drive on a sealed road from Darwin Port and its workforce’s accommodation.

The assessment, produced with environmental and sustainability consultants ERM Group, looked at the Finniss Project’s carbon footprint, life cycle, and sustainability.

The report considered all activity at the mine site, including land clearing, fuel consumption, electricity usage and blasting. It also looked at scope 3 emissions created by transporting products, business travel, and employee commutes.

Core Lithium said it’s looking into ways to further reduce its carbon footprint. It plans to revegetate the mine site. It’s also considering powering the site with renewable energy and utilising electric vehicles.

Commentary from management

Core Lithium’s managing director Stephen Biggins said of the mine’s sustainability results:

Core Lithium has always been aware of the inherent environmental, social and infrastructure advantages associated with the Finniss Lithium Project. Work performed to date by ERM Group supports the company’s push towards greater sustainability transparency and greater focus is being placed on improving the company’s relatively low-carbon footprint.

Core Lithium share price snapshot

Today’s news has given yet another boost to the Core Lithium share price.

It’s currently 42% higher than it was at the start of 2021. It has also gained 384% since this time last year.

The company has a market capitalisation of around $270 million, with approximately 1.1 billion shares outstanding.

Should you invest $1,000 in Core Lithium right now?

Before you consider Core Lithium, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Core Lithium wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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.

More on Resources Shares