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Core Lithium Ltd (AU:CXO)
:CXO
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Core Lithium Ltd (CXO) AI Stock Analysis

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AU:CXO

Core Lithium Ltd

(OTC:CXO)

Rating:50Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Core Lithium Ltd's overall score is driven by strong revenue growth, but significant risks arise from poor profitability, negative cash flows, and a challenging valuation. The stock's strong technical performance is partially offset by overbought conditions.

Core Lithium Ltd (CXO) vs. iShares MSCI Australia ETF (EWA)

Core Lithium Ltd Business Overview & Revenue Model

Company DescriptionCore Lithium Ltd engages in the development of lithium and various metal deposits in Northern Territory and South Australia. The company primarily explores for copper, gold, iron, silver, uranium, lead, and zinc deposits. Its flagship project is the Finniss Lithium project located to the south of Darwin port in the Northern Territory. Core Lithium Ltd was incorporated in 2010 and is based in Adelaide, Australia.
How the Company Makes MoneyCore Lithium makes money primarily through the exploration, development, and production of lithium resources. Its key revenue stream is the sale of lithium concentrate extracted from its mining operations, particularly from the Finniss Lithium Project. The company targets sales to battery manufacturers and other industries that require lithium for the production of electric vehicles and energy storage systems. Revenue is generated by securing off-take agreements and partnerships with major players in the battery and automotive industries, ensuring a steady demand for its lithium products. Additionally, Core Lithium may engage in strategic partnerships or joint ventures with other mining and technology companies to enhance its production capabilities and market reach.

Core Lithium Ltd Earnings Call Summary

Earnings Call Date:Feb 27, 2025
(Q4-2024)
|
% Change Since: 31.87%|
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with notable achievements in terms of record shipments, resource growth, and strong cash management. However, there are significant challenges due to market conditions and the operational pause, leading to uncertainty about future operations.
Q4-2024 Updates
Positive Updates
Record Shipments and Strong Cash Position
CXO.AX achieved record quarterly shipments of 33,000 dry metric tonnes of concentrate, generating $41.7 million in revenue. The company ended the year with a strong cash balance of $87.6 million and remains debt-free.
Significant Resource Increase
The exploration team increased the Mineral Resource to 48.2 million tonnes, marking a 58% increase. This positions the company well for future growth and development.
Low Operating Costs
Quarterly operating unit costs were the lowest of the year at $644 per tonne, demonstrating effective cost control measures implemented at the start of the calendar year.
Negative Updates
Market Challenges and Operational Pause
The company paused operations due to weak market conditions, which affected the overall performance and led to challenges in the lithium market dominated by China.
Uncertain Restart Timing
The timing for restarting operations remains uncertain and is dependent on market conditions, including lithium prices and customer responses.
Company Guidance
During the CXO.AX Q4 2024 earnings call, key metrics highlighted included a monthly recovery rate of 63% and production of over 20,000 dry metric tonnes of spodumene with a grade of 4.8%. The company reported a record sale of 33,000 dry metric tonnes, achieving an average SC6 price of over $1,000, and a cash operating unit cost of $644 per tonne. The exploration efforts resulted in an increase of the Mineral Resource to 48.2 million tonnes, marking a 58% rise. Financially, CXO.AX ended the quarter with a robust cash balance of $87.6 million, remaining debt-free, and generated $41.7 million in revenue from shipments, with total annual receipts from customers standing at $108 million. The company’s strategic focus is on maintaining a restart-ready status, optimizing cost structures, and enhancing exploration efforts with a budget of $8-9 million to further expand the resource base.

Core Lithium Ltd Financial Statement Overview

Summary
Core Lithium Ltd demonstrates strong revenue growth but faces significant challenges in profitability and cash flow. The negative margins and cash flows suggest operational inefficiencies, despite a solid equity base and low leverage.
Income Statement
30
Negative
Core Lithium Ltd has shown significant revenue growth from 2023 to 2024; however, it has struggled with profitability, as indicated by negative gross and net profit margins. The company's EBIT and EBITDA margins are also negative, highlighting operational inefficiencies. The revenue growth is promising, but the company must focus on improving its cost structure and turning revenue into profit.
Balance Sheet
55
Neutral
The company maintains a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the equity ratio indicates that a large portion of its assets is financed by equity, which may limit financial flexibility. Return on Equity (ROE) is negative due to net losses, which is a concern for investors looking for profitability.
Cash Flow
40
Negative
Cash flow analysis reveals challenges, with negative operating and free cash flows indicating that the company is not generating sufficient cash from its operations. The free cash flow to net income ratio is unfavorable, and the significant reduction in operating cash flow over the past year suggests liquidity issues that need addressing.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue189.49M50.60M0.000.000.00
Gross Profit30.90M30.61M-116.13K-136.81K-141.48K
EBITDA-163.06M15.56M-7.71M-2.77M-4.24M
Net Income-207.01M10.81M-7.47M-2.91M-4.39M
Balance Sheet
Total Assets323.96M503.14M261.85M73.19M35.79M
Cash, Cash Equivalents and Short-Term Investments88.18M152.95M135.39M38.19M8.71M
Total Debt3.53M22.94M2.09M102.34K119.61K
Total Liabilities67.09M148.22M23.13M1.88M2.22M
Stockholders Equity256.87M354.92M238.72M71.31M33.57M
Cash Flow
Free Cash Flow-165.17M-74.80M-75.44M-10.34M-8.26M
Operating Cash Flow-77.94M90.81M-6.22M-2.34M-2.64M
Investing Cash Flow-88.64M-171.62M-70.56M-8.37M1.38M
Financing Cash Flow102.39M97.79M173.87M40.20M7.58M

Core Lithium Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.12
Price Trends
50DMA
0.10
Positive
100DMA
0.09
Positive
200DMA
0.09
Positive
Market Momentum
MACD
<0.01
Negative
RSI
59.60
Neutral
STOCH
82.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CXO, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CXO.

Core Lithium Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
50
Neutral
AU$257.16M-21.25%-70.50%62.71%
44
Neutral
C$980.54M-6.83-13.68%1.75%17.37%-32.98%
$188.52M-19.11%
€78.13M-6.71%
45
Neutral
AU$43.04M-0.56%96.00%
39
Underperform
AU$41.44M-16.58%-131.72%
28
Underperform
AU$27.61M
-126.25%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CXO
Core Lithium Ltd
0.12
0.02
22.34%
PLLTL
Piedmont Lithium
0.08
-0.02
-20.00%
DE:9CH
Galan Lithium Limited
0.08
<0.01
14.29%
AU:PHO
PhosCo Ltd
0.06
0.03
100.00%
AU:LEL
Lithium Energy Ltd.
0.37
0.01
2.78%
AU:AZL
Arizona Lithium Limited
0.01
-0.01
-50.00%

Core Lithium Ltd Corporate Events

Core Lithium Director Forfeits Performance Rights
Jun 20, 2025

Core Lithium Ltd announced a change in the director’s interest, as Director Alicia Sherwood agreed to forfeit 159,309 unquoted performance rights. This adjustment reflects a strategic decision within the company’s governance, potentially impacting the company’s operational focus and signaling shifts in internal management strategies.

The most recent analyst rating on (AU:CXO) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Core Lithium Ltd stock, see the AU:CXO Stock Forecast page.

Core Lithium Announces Cessation of Performance Rights
Jun 20, 2025

Core Lithium Ltd announced the cessation of 159,309 performance rights, which were cancelled by mutual agreement between the company and the holder. This move may impact the company’s capital structure and could be part of a strategic decision to optimize its financial operations, potentially affecting shareholder value and market perception.

The most recent analyst rating on (AU:CXO) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Core Lithium Ltd stock, see the AU:CXO Stock Forecast page.

Core Lithium Unveils Finniss Restart Study Results
May 13, 2025

Core Lithium Ltd announced the release of its Finniss Restart Study and will host a webcast and conference call to discuss the results. This announcement is significant for stakeholders as it highlights the company’s ongoing efforts to enhance its operations and maintain its position in the lithium industry, potentially impacting future shareholder value.

The most recent analyst rating on (AU:CXO) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Core Lithium Ltd stock, see the AU:CXO Stock Forecast page.

Core Lithium’s Finniss Project: Operational Readiness and Market Implications
May 13, 2025

Core Lithium Ltd has released a study on the operational readiness of its Finniss Lithium Project, highlighting the project’s potential in the lithium mining sector. The announcement underscores the high-risk nature of mineral exploration and development, emphasizing that there is no guarantee of economic exploitation. The study includes a production target with a portion of inferred mineral resources, indicating a lower level of confidence compared to more established reserves. This development could impact the company’s operations and its positioning within the lithium market, with potential implications for stakeholders depending on future exploration outcomes.

The most recent analyst rating on (AU:CXO) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Core Lithium Ltd stock, see the AU:CXO Stock Forecast page.

Core Lithium Unveils Strategic Plan for Finniss Operation
May 13, 2025

Core Lithium Ltd has announced a comprehensive plan to reposition its Finniss Lithium Operation as a low-cost, long-life underground mining project with a 20-year lifespan. The Restart Study outlines significant reductions in mining and processing costs, improved production efficiency, and enhanced plant operations, resulting in a projected free cash flow of $1.2 billion. The company is exploring strategic funding options to minimize shareholder dilution and aims to secure a sustainable financial pathway. The project is expected to generate substantial employment opportunities in the Northern Territory, with strong support from the local government.

The most recent analyst rating on (AU:CXO) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Core Lithium Ltd stock, see the AU:CXO Stock Forecast page.

Core Lithium Expands Finniss Project Ore Reserves
May 13, 2025

Core Lithium Ltd has announced an update to the Ore Reserve and Mineral Resource Estimate for its Finniss Lithium Project, with a significant increase in the Grants Reserve and a move to underground mining to access more material and reduce costs. The updated Ore Reserve, which now totals 10.73 million tonnes at 1.29% Li2O, underpins the first ten years of production and supports the potential for a longer mine life, highlighting the significant resource potential across the company’s tenement package.

The most recent analyst rating on (AU:CXO) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Core Lithium Ltd stock, see the AU:CXO Stock Forecast page.

Core Lithium Ends Yahua Offtake Agreement, Eyes Strategic Flexibility
May 12, 2025

Core Lithium Ltd has terminated its legacy offtake agreement with Yahua International Investment and Development Co., settling the deal with a US$2 million cash payment. This strategic move provides Core Lithium with greater flexibility and options for securing funding to potentially restart its Finniss Lithium Operation, pending Board approval. The termination is expected to enhance the company’s strategic positioning and operational flexibility in the lithium market.

Core Lithium Advances Finniss Project and Strengthens Infrastructure Ownership
Apr 29, 2025

Core Lithium Ltd reported significant progress in its March 2025 quarterly activities, including the advancement of the Restart Study for the Finniss Lithium Project, which is on track for completion by June. The company transitioned to full ownership of site infrastructure, reducing care and maintenance costs and supporting a lower-cost restart model. Exploration efforts at Shoobridge revealed a large, shallow gold system, and plans are underway to test the Blackbeard discovery at Finniss. Financially, Core Lithium maintained discipline with cash outflows in line with expectations, ending the quarter with $29.8 million in cash. The acquisition of the crushing circuit and transition to full infrastructure ownership are expected to yield significant cost savings and operational flexibility, aligning with the company’s goals for a leaner and more resilient operation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025