Why is the Core Lithium share price outperforming today?

The company released its quarterly activities report this morning.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The Core Lithium share price is outperforming on Monday, gaining 3.7% to trade at $1.39
  • Its gain comes on the back of the lithium favourite's quarterly report 
  • The quarter just been saw the company release exciting news of its lithium and gold exploration activities

The Core Lithium Ltd (ASX: CXO) share price is in the green after the company dropped its latest quarterly activities report.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium favourite are currently up 3.73% on the back of the update, trading at $1.39.

In comparison, the ASX 200 is 1.10% higher right now while the S&P/ASX 200 Materials Index (ASX: XMJ) has slipped 0.02%.

Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery

Image source: Getty Images

Core Lithium share price lifts on quarterly update

Here are the key takeaways from the ASX lithium company's activities over the September quarter:

  • Used $3.75 million of cash in operating activities
  • Ended the quarter with $95.5 million in cash and equivalents
  • Appointed Gareth Manderson Core Lithium CEO
  • Worked towards inaugural lithium spodumene DSO shipments and maiden spodumene concentrate

The three months that ended 30 September were a busy period for Core Lithium.

Not only did the company welcome its new CEO, it uncovered spodumene ore at Grants Open Pit, increased its mineral resources and ore reserve estimate at its flagship Finniss Project, and updated the market on gold exploration activities at the project.

The company expects Finniss will see its maiden spodumene concentrate in the first half of 2023.

What else has been happening with the lithium favourite?

Of course, plenty of exciting news from Core Lithium has popped up more recently.

The company raised $100 million through a placement in which it offered shares for $1.03 apiece earlier this month.

It also announced the first sale of a Finniss spodumene DSO product, tendered through a digital exchange platform.

Finally, Core Lithium and electric vehicle giant Tesla Inc (NASDAQ: TLSA) walked away from a deal that could have seen Tesla buying up to 110,000 dry metric tonnes of Finniss spodumene concentrate last week. The pair had been in talks over the offtake agreement since March.

But Core Lithium didn't seem bothered by the failure to reach an agreement. Manderson commented on the defunct deal, saying:

The recent DSO sale, predicted commencement of lithium concentrate sales in [the first half of] 2023, and an increasing lithium price environment indicate that Core Lithium is well positioned to capitalise on the high demand and current shortage of available battery grade lithium spodumene concentrate.

Core Lithium share price snapshot

The Core Lithium share price performed well through the September quarter, gaining 15% in that time.

The stock is also currently more than 121% higher than it was at the start of 2022 and nearly 149% higher than it was this time last year.

Comparatively, the ASX 200 has fallen 10% year to date and 7% 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 positions in and has recommended Tesla. 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.

More on Resources Shares

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Resources Shares

2 ASX 200 mining shares this fund manager is backing for long-term growth

Blackwattle is invested in the ASX 200's largest diversified miner and its biggest lithium producer.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

Buying ASX 200 mining shares? Here's how Rio Tinto, Fortescue and BHP stacked up in March

Buying Rio Tinto, Fortescue, or BHP shares? Here’s how the ASX mining stocks performed in March’s sinking market.

Read more »

Miner looking at a tablet.
Resources Shares

Why are shares in this ASX copper developer surging more than 45%?

A deal for a major funding package has been struck.

Read more »

Woman with gold nuggets on her hand.
Resources Shares

Northern Star Resources posts Q3 gold sales, on track for FY26

Northern Star Resources sold 381,000 ounces of gold in Q3 FY26, keeping its production guidance in sight.

Read more »

A group of people in suits and hard hats celebrate the rising share price with champagne.
Resources Shares

$7,500 invested in Rio Tinto shares 10 days ago is now worth…

The miner's shares crashed 15% in the first three weeks of March.

Read more »

An executive stands looking out a glass window over the city.
Resources Shares

Why this ASX 200 stock just jumped 5% on Wednesday

Perenti shares are up 5% after naming a new Chief Executive.

Read more »

Smiling miner.
Resources Shares

3 reasons why the Rio Tinto share price could be a buy

Let’s unearth why Rio Tinto could be an opportunity worth digging into.

Read more »

Two workers working with a large copper coil in a factory.
Resources Shares

Up more than 90% over the past year, analysts say this ASX copper stock can keep going

Canaccord Genuity says this is a copper stock to watch.

Read more »