Core Lithium Ltd (ASX: CXO) shares are under pressure again on Wednesday.
In morning trade, the lithium miner's shares are down 9% to 20 cents.
This leaves the company's shares trading within touching distance of their record low.
Why are Core Lithium shares sinking?
Investors have been hitting the sell button today in response to the miner's half-year results.
After the market close on Tuesday, Core Lithium revealed first-half revenue of $134.8 million and a loss after tax of $167.6 million.
This reflects a 75% decline in its spodumene concentrate realised price to US$2,098 per tonne and its decision to suspend production.
In addition, its loss after tax includes a non-cash impairment of $119.6 million and provisions for onerous contracts of $27.6 million.
Commenting on the half, the company's CEO, Gareth Manderson, said:
I am pleased to be able to report that together with my team we have responded rapidly to the changing market conditions and taken the action required to put the business in the best position possible to weather the current market conditions. While this has meant suspending our mining activity, the processing of ore stockpiles provides an opportunity to generate revenue and puts the business in the best cash position possible to pursue the options available and realise value for our shareholders.
Though, Manderson won't be sticking around to see how Core Lithium fares in the future. The CEO also announced his exit with these results. Doug Warden, Core Lithium's current CFO, will assume the role as interim CEO while an executive search is undertaken.
Outlook
Core Lithium's production will remain suspended for the foreseeable future and it will instead continue to process its existing ore stockpiles to produce spodumene concentrate.
In light of this, it has reaffirmed its revised guidance for FY 2024 production of 90,000 tonnes to 95,000 tonnes of 4.77% spodumene concentrate production and sales of 80,000 tonnes to 90,000 tonnes.
In addition, the miner's exploration team is reviewing the local and regional prospectivity of its lithium tenements and gold, uranium, and base metal projects.
Core Lithium shares are now down almost 80% since this time last year.
