Core Lithium (CXO) H2 2024 earnings summary

Executive summary

• Operations at the Finniss Lithium Project were paused in January 2024 due to an 85% drop in lithium prices, with processing of stockpiles completed by June 2024 to preserve asset value and cash position.

• FY24 saw a net loss after tax of $207.0 million, driven by a $119.6 million impairment and a $25.2 million onerous contract provision, despite revenue of $189.5 million from spodumene concentrate and lithium fines sales.

• The company ended FY24 with a strong cash balance of $87.6 million and no debt, maintaining a restart-ready state for Finniss and focusing on cost base assessment and operational optimisation.

• Leadership changes included the appointment of Paul Brown as CEO in June 2024 and James Virgo as CFO, with a strategic focus on cost control, operational readiness, and exploration.

Financial highlights

• Revenue (net of QP): $189.5 million, down from $50.6 million in FY23.

• Net loss after tax: $207.0 million (FY23: $10.8 million profit), including $119.6 million impairment and $25.2 million onerous contract provision.

• Cash operating costs: $1,396/dmt; cash outflows from operations: $86.8 million.

• Cash balance at 30 June 2024: $87.6 million.

• LBITDA: $47.8 million; LBIT: $204.6 million.

Outlook and guidance

• Restart study for Finniss expected to complete in 1H CY25, with any restart decision contingent on market conditions and study outcomes.

• FY25 focus on streamlining costs, maintaining restart readiness, and advancing near-mine and regional exploration.

• Exploration budget prioritises lithium targets within trucking distance of Finniss and multi-commodity prospects.