Why is the Core Lithium share price getting crushed on Thursday?

The company's chair shared a hopeful outlook at its AGM today.

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Key points
  • The Core Lithium share price is currently the materials sector's second-worst performer, dropping more than 2% to trade at $1.42 a share
  • That's despite optimism from the company's chair, Greg English, at its annual general meeting today
  • English said the company's Finniss project is "at the right place at the right time" amid roaring lithium prices 

The Core Lithium Ltd (ASX: CXO) share price is struggling on Thursday amid the broader market's gains.

The lithium favourite's stock has plunged 2.07% at the time of writing to trade at $1.42 a share.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up 0.3% and the S&P/ASX 200 Materials Index (ASX: XMJ) has lifted 1.06%.

Today's session wasn't always as grim for the Core Lithium share price. The stock started the day in the green, reaching a high of $1.49 – a 2.8% gain.

Interestingly, the company also held its annual general meeting today, where chair Greg English said its Finniss project is "definitely in the right place at the time".

Let's take a closer look at the latest from the ASX 200 lithium share.

A senior investor wearing glasses sits at his desk and works on his ASX shares portfolio on his laptop.

Image source: Getty Images

Finniss project in 'the right place at the right time'

The Core Lithium share price is sinking amid the company's AGM despite seemingly positive comments from its chair. Looking back on the 12 months just been, English said:

We have progressed Finniss to the stage where we are mining ore at the Grants open pit. We are trucking direct shipping lithium ore to Darwin Port, and will commence shipping to China in the coming weeks. Our Dense Media Separation processing plant is nearing completion, and we are on track to commence lithium concentrate shipments early next year.

English also noted that only around 10% of Finniss' tenements, by area, have been drilled so far. The company remains confident of the potential for additional lithium resources.

Core Lithium also intends to double its record 2022 exploration budget in the coming year. It's confident Finniss' mine life can be extended in 2023. English continued:

It may be somewhat cliché, but I believe that with Finniss we are definitely 'in the right place at the right time'.

Spodumene prices continue to rise, and credible forecasters predict the price will remain high for many years. The ore at Finniss is high grade and metallurgically simple, with low iron, and we can ship the spodumene as simple gravel, making our product appealing to customers.

Core Lithium share price snapshot

Today's tumble hasn't been nearly enough to see the Core Lithium share price in the longer-term red.

The stock has gained 125% since the start of 2022. It's also 158% higher than it was this time last year.

For comparison, the ASX 200 has fallen 5% year to date and 2% 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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