Despite recent volatility, Core Lithium shares delivered a 16% gain in Q1. Here's how

There was plenty of news from the ASX 200 lithium developer last quarter.

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Key points
  • The Core Lithium share price had a remarkably wobbly first quarter, ultimately closing the period 16% higher at $1.105
  • Over that time, the company kept the market updated on work to progress its soon-to-be producing Finniss Lithium Project
  • It also revealed its new CEO, Gareth Manderson

The Core Lithium Ltd (ASX: CXO) share price saw multiple peaks and troughs over the first quarter of financial year 2022, ultimately closing the period 15.7% higher than it started.

There was plenty of news from the S&P/ASX 200 Index (ASX: XJO) lithium favourite in that time, with its stock's major driver being an update on its exploration activities.

After ending June trading at 95.5 cents, the Core Lithium share price rocketed to reach $1.105 at the final close of September. For comparison, the ASX 200 gained 1.4% over the September quarter.

However, in that time, the stock hit an all-time high of $1.69 and a low of 82.5 cents – marking a variance of more than 100%.

So, what exactly has been going right for the Core Lithium share price lately? Let's take a look.

Four people in business suits and white hard hats sit in front of desk and cheer

Image source: Getty Images

What drove the ASX 200 lithium developer in Q1?

The Core Lithium share price had a good, albeit volatile, run in the first quarter of financial year 2022 as the company continued to prepare for the maiden sale of lithium from its Finniss Project.

It noted its plans to tender the project's production on a digital exchange platform, as its ASX 200 lithium peer Pilbara Minerals Ltd (ASX: PLS) is known to do, late last month.

Additionally, it welcomed a new CEO following the shock exit of former managing director Stephen Biggins in March. Gareth Manderson took up the company's reins in August after a 28-year stint in the mining and minerals sector.

Core Lithium also announced assay results from a diamond drilling campaign conducted at the Finniss' BP33 deposit. In early August, the lithium developer reported the campaign found "world-class high-grade lithium intersections".

Later that month, it revealed it had found gold at shallow depths at the project.

Finally, the company's final close of the quarter was remarkably underwhelming for its share price, which was put in the freezer on 29 September. It was unfrozen last week on news of a successful $100 million institutional placement.  

Core Lithium share price snapshot

The Core Lithium share price has been on a roll lately.

As of the final close of September, the stock was 76% higher than it was at the start of 2022. It's also currently 165% higher than it was 12 months ago.

Meanwhile, the ASX 200 has dumped 12% year to date and 9% over the last 12 months.

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 Scott Phillips.

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