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Why is the Core Lithium price rebounding today?

Core Lithium is outperforming multiple ASX lithium shares today.

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Monica O'Shea
Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.
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Key points
  • The Core Lithium share price is lifting 3.48% today 
  • This follows the company's share price tumbling 6% yesterday 
  • Core Lithium has received positive broker coverage this week amid looming FY23 production at the company's Finniss Lithium Project. 

The Core Lithium Ltd (ASX: CXO) share price is in the green today.

Core Lithium shares are rising 3.48% and are currently trading at $1.04.

Let's take a look at what could be weighing on the Core Lithium share price today.

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Image source: Getty Images

What's going on?

Core Lithium shares are outperforming multiple ASX lithium shares today. The Sayona Mining Ltd (ASX: SYA) share price is lifting 1.25% today, while Lake Resources N.L. (ASX: LKE) shares are up 0.95% and Allkem Ltd (ASX: AKE) shares are up 0.34%. However, the Pilbara Minerals Ltd (ASX: PLS) share price is 0.39% in the red.

In US markets overnight, lithium shares also had a mixed performance. The Sociedad Quimica y Minera de Chile share price (NYSE: SQM) climbed 1.63%, while Albemarle Corporation (NYSE: ALB) shares leapt 0.069%. meanwhile, Lithium Americas Corp (NYSE: LAC) shares slid 3.47%.

Core Lithium shares descended 6% on the market yesterday. Investors could be buying the dip in light of recent positive broker coverage on the company's shares. Macquarie lifted Core Lithium to outperform this week with a $1.30 price target.

The broker is tipping Core Lithium to generate a high level of free cash flow in FY24 and FY25. Core Lithium is developing the Flinders Lithium Project in the Northern Territory. Core Lithium states Finniss is "one of the most capital efficient lithium projects" in Australia. First spodumene concentrate production from this project is due in the first half of 2023.

Last week, Core Lithium advised it is making "good exploration progress" at the Finniss project. Drilling at the Hang Gong and Bilatos prospects delivered "promising results".

Commenting on this news, CEO Gareth Manderson said:

The RC and diamond drilling results are encouraging and demonstrate that the additional investment in the drilling program at Finniss in 2022 is the right approach for the exploration strategy.

Core Lithium share price snapshot

The Core Lithium Ltd (ASX: CXO) share price has soared 101.94% in the last year.

Core Lithium has a market capitalisation of about $1.9 billion based on the current share price.

Motley Fool contributor Monica O'Shea 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 recommended Macquarie Group. 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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