The Core Lithium share price surged 14% in April. Here's why

April saw Core Lithium release a number of positive announcements, piquing ASX 200 investor interest.

Key points
  • The Core Lithium share price gained 14% in April
  • The ASX 200 lithium stock sent its maiden lithium shipment to Yahua ahead of schedule
  • Core Lithium announced a 62% increase in the mineral resource estimate at its Finnish Lithium Operation

The Core Lithium Ltd (ASX: CXO) share price helped boost investors' fortunes in April.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed at 86 cents apiece on 31 March. By the closing bell on 28 April those same shares were swapping hands for 98 cents apiece.

That's a one-month gain of 14%.

For some context, the ASX 200 gained 1.8% in April.

Here's what went right for the Core Lithium share price in April.

Person pointing at an increasing blue graph which represents a rising share price.

Image source: Getty Images

What piqued ASX 200 investor interest in April?

April kicked off well for shareholders in the ASX 200 lithium stock.

On 5 April the company reported it was ready to export a maiden 3,500 tonne shipment of spodumene concentrate (5.6% lithium oxide) to Yahua in China from its Finniss Lithium Operation in the Northern Territory.

That export came in ahead of schedule, with the first shipment originally slated for the end of April. The Core Lithium share price closed the day up 8.1%.

Less than two weeks later, on 18 April, the lithium miner released another promising update.

Core Lithium revealed that following its 2022 exploratory drilling program, the mineral resource estimate at the Finnish Lithium Operation had increased by 62%.  The mineral resource estimate was increased to 30.6 million tonnes at 1.31% lithium oxide.

Commenting on the day, Core Lithium CEO Gareth Manderson called it "a fantastic outcome for Core and our shareholders".

He added that increased mineral resource estimate highlighted "the strong potential for life of mine extensions at the Finniss Lithium Operation".

The Core Lithium share price closed up 6.5% on 18 April.

What else lifted the Core Lithium share price in April?

Core Lithium released its third-quarter activities and cash flow report on 26 April.

The company's balance sheet was solid, with the miner holding $98 million in cash and cash equivalents as at 31 March.

Core Lithium also reported it has started a $25 million drilling program for 2023. As it tests the potential for life of mine extensions and expansions, that's nearly twice what the miner spent on its drill campaign in 2022.

"Core is rapidly moving to lithium concentrate producer status," Manderson said.

The Core Lithium price finished 2.1% higher on the day.

Motley Fool contributor Bernd Struben 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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