If you saw the looming opportunity on offer from ASX lithium stocks five years ago and bought $10,000 worth of Core Lithium Ltd (ASX: CXO) shares, would you still be sitting on any gains today?
I won't leave you hanging there.
The answer is yes.
Despite the collapse in global lithium prices from the record-smashing highs posted in November 2022, Core Lithium shares have substantially outperformed the 58% five-year gains delivered by the All Ordinaries Index (ASX: XAO).
But it most assuredly has not been a smooth ride for shareholders.
Image source: Getty Images
How have Core Lithium shares performed over five years?
Five years ago, global markets were in the second week of their recovery from the COVID-driven stock market crash.
At the time, Core Lithium wasn't a very well-known name on the ASX, although the miner listed back in February 2011. But that was about to change.
On 3 April 2020, you could have bought Core Lithium shares for 3 cents apiece.
Meaning your $10,000 investment would have netted you 333,333 shares (excluding any potential brokerage fees).
Now, with the benefit of hindsight, you would have done very well to sell those shares during the lithium boom in 2022. Core Lithium stock hit multiple new all-time highs during the year.
If we're going to cherry-pick our dates here, you could have sold your shares on 11 November 2022 for $1.67 apiece. That means your 333,333 shares purchased for $10,000 in April 2020 would have earned you a cool $556,666.
Not bad!
Of course, most investors didn't sell at those highs.
And the next two-plus years saw Core Lithium, like most every lithium producer the world over, come under heavy selling pressure.
Fast forwarding to April 2025, and Core Lithium closed on Tuesday trading for 7.5 cents a share.
While that's a far cry from the highs of 2022, it's still well above the price you would have paid five years ago.
At yesterday's closing price, the 333,333 Core Lithium shares you bought five years ago for $10,000 would be worth $24,999.975. Or a gain of 150%.
What's the latest from the ASX All Ords lithium stock?
Amid crashing lithium prices, Core Lithium suspended mining at its flagship Finniss Lithium project in January 2024.
But the miner has been keeping the project in standby mode for a restart once prices for the battery-critical metal improve.
On 27 March, Core Lithium shares closed up 5.3% when the company reported its restart study should be completed on schedule in the June quarter.
Management is aiming to reduce costs and improve productivity at Finniss.
A final decision on the timing of any restart has not yet been made.
