The Core Lithium Ltd (ASX: CXO) share price has burst out of the gates on Friday.
In morning trade, the lithium miner's shares are up 22% to 41.5 cents.
Image source: Getty Images
Why is the Core Lithium share price rocketing?
Investors have been bidding the company's shares higher today after it released its FY 2023 results and revealed a maiden profit. Core Lithium reported:
- Revenue of $50.6 million
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $14 million
- Net profit after tax $10.8 million
This was driven by 5,423 tonnes of spodumene concentrate sales at an average realised price of US$4,163 per tonne. In addition, the company shifted 14,775 tonnes of DSO at a price of US$951 per tonne.
These sales were achieved with C1 costs of $1,230 per tonne, which underpinned EBITDA of $14 million for FY 2023.
On the bottom line, the company reported a net profit after tax of $10.8 million. This was boosted by a deferred tax benefit of $1.6 million.
Core Lithium ended the financial year with cash of $153 million and no debt. This does not include sales receipts recognised after the reporting date nor its $111.4 million capital raising.
Looking ahead, management has reaffirmed its production guidance of 80,000 to 90,000 tonnes, sales of 90,000 to 100,000 tonnes, and C1 costs of $1,165 to $1,250 a tonne. However, it warns that this guidance is subject to weather, geotechnical conditions, and other operational risks.
'A significant achievement'
Core Lithium's CEO, Gareth Manderson, was pleased to report the miner's maiden profit. He said:
In the second half of FY23, Core achieved first revenue, completed construction at Finniss and commenced production and sales of spodumene concentrate. "Delivering a maiden profit in the first year is a significant achievement and a testament to the strategy to move quickly to production in a strong pricing environment.
Core's balance sheet and the strategic capital allocation for operations improvement, development, and exploration programs will provide the foundations for the Company to realise its growth ambitions in the financial year ahead.
The Core Lithium share price remains down 60% over the last 12 months despite today's gain.
