It's a big day for Core Lithium Ltd (ASX: CXO) shares today.
Not because of any outsized share price moves.
Though shares in the All Ordinaries Index (ASX: XAO) lithium stock are up a welcome 1% at time of writing, trading for 9.3 cents apiece. Which, as you can see on the chart below, leaves Core Lithium shares down a painful 72% over 12 months.
Rather, today is a big day for shareholders with Core Lithium holding its annual general meeting (AGM).
Here's what we learned.
Image source: Getty Images
Core Lithium shares in focus amid AGM
Core Lithium chair Greg English kicked off his address to shareholders by acknowledging the impact of cratering lithium prices.
"During the past 12 months, we have been operating in a challenging environment due to a significant decline in spodumene prices," he said.
English continued:
When we produced the first spodumene concentrate from Finniss in February 2023, lithium prices were nearly US$8,000 per tonne. A year later, the price fell to around US$1,100 per tonne, and now, nine months later, the price has fallen to US$770 per tonne.
These price levels challenge the economic viability of most lithium operations globally.
The huge falls in global lithium prices, which have hammered Core Lithium shares, saw Core suspend mining operations at its Northern Territory Finniss project in January to preserve the company's cash reserves until market dynamics are more favourable.
The company ended FY 2024 with cash balance of more than $87 million and no debt.
"While some of the most challenging decisions are behind us, we are acutely aware of their impact on shareholders, our employees and important stakeholders in the Northern Territory," English said.
English noted that since the processing of ore stockpiles at Finniss concluded in June:
We have made sure to secure the site safely, aggressively explored near mine and greenfield exploration targets, and undertaken further studies and test work to strengthen our position so that we are ready to resume mining once market conditions are more stable.
Executive shakeups
"Recent leadership transitions have also strengthened our team as we prepare to get the Finniss operation restart ready," English said of the executive shakeups intended to help support Core Lithium shares.
Gareth Manderson resigned as CEO in March, with Paul Brown taking over the reins in May.
"Paul has a proven track record of leadership and extensive experience in lithium operations and project execution," English said.
What now for Core Lithium shares?
As for what investors might expect ahead for Core Lithium shares, English said, "There remains a clear prospect for long-term growth, but we expect to continue to see short-term volatility."
English added:
We have taken proactive steps to navigate the current landscape and are confident in capitalising on future opportunities as the lithium market recovers.
Despite the challenges and uncertainties facing all lithium companies doing business in Australia, we continue to focus on future growth and generating superior long-term returns for our shareholders.
Our strategic goals for FY 2025 are to streamline business costs, get the Finniss Operation to a restart-ready position, and continue near-mine and regional exploration.
