Core Lithium (CXO) - Getting into Production by YE/22

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Matthew Gordon spoke to Stephen Biggins, MD of Core Lithium (ASX: CXO) to discuss the company’s most recent activities.

Our previous interview: https://youtu.be/jIR3_TItq0c

Core lithium is an ASX-listed lithium exploration and development company poised to become Australia’s next lithium producer. The company is focused on its Finniss lithium project which is located near Darwin Port in the Northern Territory of Australia. The project is set to be one of the most capital-efficient and lowest-cost spodumene lithium projects in Australia.

The company has been able to further the Finniss lithium project to a construction phase, which is on schedule to produce its first product by the end of 2022.

Core Lithium is underway with studies to determine how production can be expanded as soon as production is initiated, with various strategies being implemented by the company including investing heavily in exploration drilling. The company recently published results of its ongoing exploration drilling program with highlights including 1.83% Li2O over 57.35 m and 1.63% Li2O over 51.0 m.

The company has an offtake agreement with China’s Sichuan Yahua Industrial Group (Yahua) for 80% of the total production for the first 4 years of production. The agreement holds the option for extension throughout the agreement. Core Lithium also holds an offtake agreement with Jiangxi Ganfeng Lithium for the purchase of 300,000 dry metric tons of spodumene concentrate in total, at 75,000 tons per annum. Ganfeng and Yahua both hold equity of Core Lithium, which the company issued during the start of the project and enabled the company to progress thus far.

The company has recently also executed a legally binding term sheet agreement for the supply of 10,000 tons of spodumene concentrate over 4 years with Tesla. The company is funded for its plans and is awaiting further assay results of its exploration and resource drilling program.

0:00 - Company Overview
0:20 - Current Situation of the Company
0:50 - Project Update
4:01 - Build Phase Process
6:15 - Using Offtakes as an Advantage to the Company
9:18 - Discussion of Equity in the Offtake Agreement
11:01 - Project Phase 1 and 2 Overview
14:45 - Updated Offtake Agreement Discussion
15:31 - Discussion of Drilling Plan Intent
17:11 - Sequencing and Details of Drilling Plan
20:52 - Investment Rationale for Prospect Investors
21:52 - Ramp-Up Period Projection
22:30 - Funding of Mining Program
22:53 - Mining Assays Production Increase & Expansion
25:33 - Gold Project Attributed Value
25:51 - Forecast on Future Supply for Lithium

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