2024 AGM Presentation
Released
Released
Announcement PDF
ASX: CXO
Annual General Meeting
27 November 2024
Important and Cautionary Notes
This presentation has been prepared by Core Lithium Ltd (“Core”, “Company”) and provides a general overview of the Company and its strategy.
This presentation does not purport to be all-inclusive or to contain all the information that you or any other party may require to evaluate the prospects of the Company. None of the Company, any of its related bodies corporate
or any of their representatives assume any responsibility for, or makes any representation or warranty, express or implied, with respect to the accuracy, reliability or completeness of the information contained in this presentation
and none of those parties have or assume any obligation to provide any additional information or to update this presentation. The information in this presentation should be read in conjunction with Core’s other periodic and
continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au.
To the fullest extent permitted by law, the Company, its respective affiliates and representatives, related bodies corporate, officers, employees, partners, agents and advisers make no representation or warranty (express or
implied) as to the currency, accuracy, reliability, reasonableness or completeness of the information in this presentation and expressly disclaims all responsibility and liability for any loss or damage arising in respect of your
reliance on the information contained in this presentation (including your reliance on the accuracy, completeness or reliability of that information), or any errors in or omissions from this presentation, including any liability arising
from negligence.
The Finniss Lithium Project as described in this presentation as being in a state of operational readiness, and potential investors should understand that mineral exploration, development and mining are high-risk undertakings.
There is no guarantee that the Finniss Lithium Project can be economically exploited in the future.
This document contains statements which may be in the nature of forward-looking statements. No representation or warranty is given, and nothing in this presentation or any other information made available by the Company or
any other party should be relied upon as a promise or representation, as to the future condition of the respective businesses and operations of the Company.
Competent Person Statements
The Mineral Resources and Ore Reserves underpinning the production target and forecast financial information in this announcement have been prepared by competent persons in accordance with the requirements of the
JORC code.
Core confirms that it is not aware of any new information or data that materially affects the results included in this announcement as cross referenced in the body of this announcement and that all material assumptions and
technical parameters underpinning the Mineral Resources, Ore Reserves, exploration results, production target and forecast financial information derived from the production target continue to apply and have not materially
changed except as reported within this release. The announcement references the previously report Mineral Resource update “Finniss Mineral Resource Increased by 58%” on 11 April 2024 and Ore Reserve Update "Lithium
Ore Reserve Update" on 25 September 2024. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcements
related to previously reported exploration results, Ore Reserves and Mineral Resources.
Currency
Unless otherwise stated, all cashflows are in Australian dollars, are undiscounted and are in real terms (not subject to inflation/escalation factors).
Forward‐looking Statements
Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘likely’,’ believe’, ’estimate’, ‘expect’, ’intend’, ’may’, ’would’, ’could’, ’should’,
’scheduled’, ’will’, ’plan’, ’forecast’, ’evolve’ and similar expressions. Persons reading this release are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be
materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein,
including but not limited to general business, economic, competitive, political and social uncertainties; the actual results of current exploration, development and construction activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future prices of lithium; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accident, labour
disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. This list is not exhaustive of the factors that may affect
forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. The Company disclaims any intent or obligations to or
revise any forward-looking statements whether as a result of new information, estimates, or options, future events or results or otherwise, unless required to do so by law. Statements regarding plans with respect to the
Company’s mineral properties may contain forward-looking statements in relation to future matters that can be only made where the Company has a reasonable basis for making those statements.
Past Performance
Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.
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Corporate Overview
Stable Board and new Management team in place to support the restart strategy
Greg English
Non-Executive Chair
BEng (Hons), LLB
Heath Hellewell
Non-Executive Director
BSc (Hons) MAIG
ASX Code
Shares
Share Price (26 Nov 2024)
Malcolm McComas
Non-Executive Director
BEc, LLB, SF Fin, FAICD
Jarek Kopias
Alicia Sherwood
CXO
2,143m
$0.09
Market Capitalisation
$203.6m
Cash (30 Sep 2024)
$61.3m
Non-Executive Director (from 1 Dec)
MComRel
Debt
Nil
Company Secretary
Bcom, CPA, AGIA, AGS (CS, CGP)
3
Company overview
Ideally placed to capture future value with infrastructure and key markets on our doorstep
A healthy cash balance and no
debt ideally poised for current
market conditions
Strategically located lithium mine
with proven plant and simple logistics
chain
New management team with
significant mining and lithium
industry experience
Restart Study underway
to optimise the asset’s
cost and operating
performance, whilst
maintaining the site in a
restart ready state
DARWIN
Disciplined capital allocation
focused on measurable
payback thresholds and
appropriate investment returns
Finniss Lithium
Operation
Near mine exploration targets
for lithium and other prospective
targets for other commodities
NORTHERN TERRITORY
4
Ideally positioned for a market recovery
A proven team with an operation which can be rapidly restarted for minimal capital in the right market conditions
Leadership
team
Mineral
Resource
Ore Reserve
Located on
Crown land
Fully
permitted
Mine
constructed
Processing
plant
Proven
logistics
chain
Operating
experience
Significant capital and +10 years1 is required to turn a lithium discovery into a new mine
Paul Brown
Chief Executive Officer
James Virgo
Chief Financial Officer
James Bruce
Chief Operating Officer
•
Two decades in the mining industry
•
•
•
Senior experience across multiple
Australian lithium operations
Three decades as a mining engineer and
corporate executive
More than 12 years in mining and
professional services
•
Underground Mine Manager at WMC
Resources and Corporate Development
role at Mineral Resources
•
Chartered Accountant with financial
and commercial experience
•
•
Resources investment professional at
Perpetual Investments and SailingStone
Capital
Previous roles at Resolute Mining and
Ernst & Young
•
Previously executive roles at Mineral
Resources, Fortescue Metals Group,
Henry Walker Eltin and Leighton
Contractors
5
1. Refer to “S&P Global Analysis: Discovery to Production Averages 15.7 years for 127 mines”: S&P Global Market Intelligence, 6 June, 2023.
Sustainability performance
• Positive industry leading safety performance across FY2024
and FY2025 year-to-date, with zero lost time injuries (LTI)
• Well established water management infrastructure, allowing the
company to successfully operate through the FY2024 wet
season and sustainably manage water inflows to maintain Finniss
in a restart ready state
• Established relationship with local Traditional Owner group to
engage and collaborate on routine environmental management
activities and critical projects
• Strong Northern Territory Government relations and continued
support of the restart project and its potential economic impact
• Community Grants Program provided funding to community
groups, including schools and universities in the Belyuen, Dundee
Beach, and Berry Springs local areas
6
Successful history
• Lithium discovery in 2016 on vacant crown land
• Major land position consolidated over several years
• Mineral Lease granted in early 2019
• Major Project status granted in 2021
• Construction of DMS plant commences in June 2022
• Invested capital of +$250m
• Successful ramp up of mining and processing
• First high-quality, coarse-grained concentrate shipment
in May 2023
• Early move to suspend operations in January 2024 due to
market conditions
• Processing of ore stockpiles completed in June 2024
7
The Finniss Operations
Core holds ~500km2 of the Bynoe pegmatite field in the NT
Multiple lithium prospects within trucking distance of the
Finniss processing infrastructure, with exploration upside
Established open pit mine at Grants and underground
mine development at BP33 located on Crown land
Recently commissioned 1Mtpa DMS plant close to Darwin
infrastructure and port facilities with short shipping routes to
customers
Produces a high-quality, coarse-grained spodumene
concentrate which is highly regarded by our offtake partners
A large JORC Mineral Resource Estimate (MRE) with more than
half in higher confidence Measured and Indicated categories1
48.2Mt @ 1.26% Li2O% for 608kt of Li2O
1. Refer to ASX announcement “Finniss Mineral Resource Increased by 58%” on 11 April 2024
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Ore Reserve update1
• Total Finniss Ore Reserve1 is now 9.25Mt @ 1.38%
Li2O
• Significant 223% growth in the BP33 Ore Reserve to
8.68Mt @ 1.38% Li2O provides a strong foundation for
restart studies currently underway
• Updated estimate reflects consolidation of
operations around high-grade BP33 and Grants
deposits
• Grants Open Pit of 0.57Mt at 1.40% Li2O, reflecting
depletion and operational adjustments, with Mineral
Resource of 2.3Mt at 1.47% Li2O
• Restart study areas of focus BP33 and Grants underpin a
simpler project with a notional operating life of
9.5 years at the rate of the existing 1Mtpa Finniss
process infrastructure
• Ore Reserves expected to be updated based on the
outcomes of the ongoing Restart Study
1. Refer to ASX announcement "Lithium Ore Reserve Update" on 25 September 2024
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High quality
infrastructure
with capacity
10
Restart Study objectives
• Restart Study on track for completion and release in the
June 2025 quarter
• Key activities as part of the Restart Study include:
• Revisiting operational data to underpin areas of focus
• Re-optimise the mine plan for Grants and BP33
• Assess the optimum process flowsheet based on
detailed metallurgical testwork and a trade-off study
• Deliver a high confidence capital estimate
• Consider potential strategic funding options
• Objectives of the Restart Study are to:
• Reduce operating costs
• Improve operating efficiency and deliverability
• Ensure a resilient business structure capable of
sustaining in future lithium market cycles
• Any restart decision is supported by relevant approvals and
will be guided by the study outcomes and market conditions
11
Exploration opportunity
Finniss
Li
Shoobridge
Li Au
• Further defining resource potential close to existing
infrastructure at Finniss which hold the most immediate
potential to create value
WESTERN
AUSTRALIA
• Growing Mineral Resources within trucking distance of
the Finniss processing infrastructure which support the
Restart Study are the highest priority in FY25
Lithium
Uranium
Base metals
• Consistent exploration year-on-year has continued to
build Ore Reserves and Mineral Resources
Perth
Head office
• Multi-commodity targets will be assessed and tested
where appropriate
Exploration Drilling and Ore Reserve Outcomes
12
250,000
10
200,000
8
150,000
6
100,000
4
Metres Drilled (m)
Reserve(Mt)
• Opportunities to rationalise the exploration portfolio,
including the potential divestment of non-core
tenements, will be considered
NORTHERN
TERRITORY
50,000
2
0
2016
2017
2018
2019
2020
Reserves (Mt)
2021
2022
2023
2024
Metres
drilled…
Total Drilled
Metres
12
Blackbeard lithium potential
• High-grade lithium drill results1
within 20km of Finniss
processing facilities
• Lithium mineralisation
confirmed over a 600m strike
from Blackbeard to Centurion
• The mineralisation is clearly
defined and entirely
contained within the 100%owned Mining Lease
• Best assays include:
• 63m @ 1.67% Li2O from 166m
• 41m @ 1.63% Li2O from 137m
• 59m @ 1.59% Li2O from 158m
• Blackbeard interpreted to be
up to 45m wide and open at
depth
1. Refer to ASX announcement “New high-grade lithium drill results within 20km of Grants" on 6 November 2024.
13
Shoobridge gold potential
• Drilling completed along ~1km of
a 4.5km anomalous gold trend
• Located within a historically
productive goldfield with
existing processing
infrastructure
• High-grade gold zones within a
broad envelope of low-grade
mineralisation up to 60m wide
and dipping steeply to the east
• High-grade single metre assays
up to 19.76g/t Au1
• Best assays include1:
• 2m @ 12.91g/t Au from 54m
• 12m @ 2.93g/t Au from 56m
• 4m @ 3.73g/t Au from 45m
• Follow-up 4,500m RC and
diamond drilling underway
1. Refer to ASX announcement“Positive Results Highlight Gold and Lithium Potential at Shoobridge" on 18 September 2024, "Gold Hits continue as drilling resumes at Shoobridge" on 21
October 2024.
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Key objectives for the coming 12 months
Keep high Sustainability
standards
Complete the Finniss
Restart Study
Conduct targeted near
mine exploration
by prioritising established
Governance framework
positive safety records and
environmental performance
In the June 2025 quarter
and continue to build value
in a disciplined way
Maintain capital
discipline
Finniss maintained in a
restart ready state
Assess strategic
options and options
by streamlining costs and a
focus on return on investment
in line with the outcomes of
the Restart Study
that can generate greater
shareholder value
15
Core Lithium Ltd
Level 9, 2 Mill Street
Perth, WA, 6000
info@corelithium.com.au
Investor Enquiries
Paul Brown
CEO
+61 8 8317 1700
Authorised for release by the Board of Core Lithium Ltd
Media Enquiries
Michael Vaughan
Fivemark Partners
+61 422 602 720
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Appendix: JORC Ore Reserve Estimate
Deposit
Category
Ore Tonnes
(Mt)
Li2O (%)
Contained
Li2O (kt)
0.53
1.40
7.4
Probable
0.04
1.48
0.6
Total
0.57
1.40
8.0
Proved
2.43
1.33
32.4
Probable
6.25
1.40
87.2
Total
8.68
1.38
119.6
Proved
2.96
1.34
39.8
Probable
6.29
1.40
87.8
Total
9.25
1.38
127.6
Grants Open Pit Proved
BP33
Underground
Total
1.
Effective date of the Ore Reserves is 30 June 2024.
2.
Ore Reserves are the total for the Grants and BP33 Mines.
3.
The long-term Spodumene price used for calculating the financial analysis is US$1,450/t. The analysis has been
calculated with assumptions for crushing, processing and treatment charges, deductions and payment terms,
concentrate transport, metallurgical recoveries, and royalties.
The breakeven cut-off for underground mining at BP33 Underground is 0.80% Li2O.
The marginal cut-off grade for the Grants Open Pit is 0.50% Li2O.
4.
5.
6.
7.
Measured Mineral Resources were used to estimate Proved Ore Reserves; Indicated Mineral Resources were
used to estimate Probable Ore Reserves.
Tonnage and grade estimates include dilution and recovery allowances.
8.
The Ore Reserves reported above are not additive to the Mineral Resources.
9.
10.
Totals within this table are subject to rounding.
See ASX announcement “Lithium Ore Reserve Update” on 25 September 2024
The 2019 Ore Reserve Estimate (ORE) of 2.2Mt @ 1.4% Li2O is comprised of 1.0Mt @ 1.4% Li2O Proved ORE and 1.2Mt
@ 1.4% Li2O Probable ORE (“Finniss Definitive Feasibility Study and Maiden Ore Reserve” released on 17 April 2019).
The 2020 ORE of 5.7Mt @ 1.3% Li2O is comprised of 2.9Mt @ 1.4% Li2O Proved ORE and 2.8Mt @ 1.3% Li2O Probable
ORE (“Increased Ore Reserve Significantly Extends Finniss” released on 30 June 2020).
The 2021 ORE of 7.4Mt @ 1.3% Li2O is comprised of 3.8Mt @ 1.4% Li2O Proved ORE and 3.7Mt @ 1.2% Li2O Probable
ORE (“Stage 1 DFS and Updated Ore Reserve” released on 26 July 2021).
The 2022 and 2023 ORE of 10.6Mt @ 1.3% Li2O is comprised of 5.5Mt @ 1.4% Li2O Proved ORE and 5.1Mt @ 1.3% Li2O
Probable ORE (“Significant Increase to Finniss Resources and Reserves” released on 12 July 2022).
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Appendix: JORC Mineral Resource Estimate
Mineral Resource Estimate for the Finniss Lithium Project
0.5% Li2O cut-off
Million tonnes
(Mt)
Li2O%
Li2O Contained
Metal (kt)
Measured
6.33
1.41
89.3
Indicated
21.6
1.30
280
Inferred
20.3
1.18
239
Total
48.2
1.26
608
Resource Category
Note: Totals within this table are subject to rounding
See ASX announcement “Finniss Mineral Resource Increased by 58%” on 11 April 2024
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