Core Lithium Ltd (ASX: CXO) shares raced to another 12-month high on Friday after the company made positive comments around the potential restart of its Finniss mine in the Northern Territory.
Chair Greg English told the company's annual general meeting on Friday morning that the company had just endured a very difficult year.
As he said:
The company's strategy to reset Finniss took meaningful steps forward during the year that was amongst the most challenging, if not the most challenging, for the lithium industry this decade. While these conditions are difficult, they are also cyclical, and we have seen some more recent improvement which is encouraging.
Mr English said the company's Finniss operations "remained in suspension" throughout FY25, with a small team remaining on-site to "ensure the project remains in excellent condition and fully complies with its environmental obligations''.
Image source: Getty Images
Work on restart progressed
But the company did not rest on its laurels, he said.
The board tasked management with completing a preliminary technical review of Finniss to first establish whether a new operating model could deliver a more robust, lower cost project. Upon determining there was significant scope for this to be achieved, an intensive program of detailed technical review and planning was completed in what became the Restart Study released to shareholders in May 2025.
Mr English said the restart study struck a balance between minimising pre-production capital outlays and reducing operating costs.
And while the company was happy with the restart study, Mr English stopped short of putting a timeframe on a potential resumption of mining.
While this work has been very positive, we are not yet at a point where the board could consider restarting the operation, which I appreciate is a key focus for Core Lithium shareholders. Any decision in this regard remains subject to market conditions and securing an attractive project financing solution in the ongoing strategic process, amongst other factors. As I mentioned, there have been some recent signs of improvement in sentiment towards lithium which we would like to see continue.
Mr English said the company's balance sheet had been bolstered by a capital raise in August, and Core Lithium would bide its time while the lithium market recovered.
Although the lithium industry is at a low point, history shows that cycles turn. Demand growth from electric vehicles, energy storage, and renewable integration will require substantial new supply. Projects like Finniss, with approvals, infrastructure, low capital intensity and demonstrated product quality, are well placed to respond.
Core Lithium shares traded as high as 21.5 cents on Friday morning before settling back slightly to be 10.5% higher at 21 cents.
The stock was changing hands for just 10.5 cents in mid-October.
The Core Lithium share surge occurred amid a positive day for lithium stocks generally, with IGO Ltd (ASX: IGO) rising 1.4% and Pilbara Minerals Ltd (ASX: PLS) increasing 0.8%.
