Core Lithium Ltd (ASX: CXO) shares are charging higher today.
Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed yesterday trading for 31.5 cents. In early morning trade on Wednesday, shares are changing hands for 32.5 cents apiece, up 3.2%.
For some context, the All Ords is down 0.4% at this same time.
This outperformance follows a big announcement from the miner this morning.
Here's what we know.
Image source: Getty Images
Core Lithium shares jump as mining resumes at Finniss
Investors are bidding up the ASX lithium stock after the miner reported that mining operations have recommenced at the Finniss Lithium Operation, located in the Northern Territory.
Core's flagship Finniss project was placed into care and maintenance in January 2024. That followed the global lithium price crash, which made mining at Finniss unprofitable and sent Core Lithium shares into a tailspin at the time.
But with global lithium prices having rocketed over the past year, blasting and excavation works have kicked off at Grants open pit, situated within Finniss.
Core Lithium is engaged in a staged return to production. With the recommencement of mining operations, management said that the company is on track for near-term production and cash flow generation.
Finniss is expected to re-enter the spodumene market (a lithium bearing ore) in the near term, with the company targeting the first spodumene concentrate shipment in the December quarter.
What did management say?
Commenting on the Finniss restart that's helping to boost Core Lithium shares today, managing director Paul Brown said, "The commencement of mining at Grants marks the start of Finniss returning to production, with first ore expected to be processed in the September quarter and first shipment targeted for the December quarter."
Brown added:
In less than three months since FID, we have secured funding, awarded key mining contracts and transitioned to active mining, demonstrating disciplined execution.
Grants provides a low-risk, near-term ore source to underpin early production and cashflow, while BP33 continues to progress as the long-term foundation of the operation. Our focus remains on safe, reliable execution and delivering Finniss back into production on schedule and on budget.
With today's intraday gains factored in, Core Lithium shares are up a whopping 249.5% since this time last year, smashing the 2.5% one-year returns delivered by the All Ords.
But the ASX lithium stock has a long way to go yet before retaking the highs set back in November 2022, when shares were trading for $1.67 apiece.
