Latest news with #CoreLithium
National Post
a day ago
- Business
- National Post
Lithium Royalty Corp. Announces Second Quarter 2025 Results
Article content LRC repurchased C$4 million worth of shares at a weighted average price of C$5.62 in the quarter, retiring ~9% of the free float Lower shipments and a 36% year-over-year drop in spodumene prices negatively impacted revenue Ganfeng's Mariana project advanced commissioning during the second quarter, with first revenue to LRC expected in 2H25 Portfolio company Atlas Lithium released a definitive feasibility study (DFS) on its Das Neves project, outlining strong economics supported by a favorable all-in sustaining costs (AISC) of $595 per tonne inclusive of the 3.0% LRC royalty Portfolio company Core Lithium released its restart study for the Finniss project, highlighting reduced cash costs and engaged Morgan Stanley Australia to advise on the restart process Zijin Mining's Tres Quebradas project expects production in 2H25 LRC finished the quarter with $28 million in cash, no debt, and a strong pipeline of opportunities Lithium prices are up 52% from the lows in late June, as reported by Shanghai Metals Market (SMM) Article content (in thousands of U.S. dollars unless otherwise noted) Article content TORONTO — Lithium Royalty Corp. (TSX: LIRC) ('LRC' or the 'Company') announces second quarter 2025 results. Article content 'While the sector continued to face challenging conditions in the second quarter, LRC strategically acquired additional shares of LRC. Lithium prices weakened throughout the quarter into June, but we are encouraged by the recent rally up 52%, driven by continued robust demand, production cuts, and better visibility on trade dynamics. Despite the lithium market's volatility, the LRC portfolio continues to advance and mature, with Ganfeng's Mariana project expected to produce in 2H25, Zijin Mining's Tres Quebradas project progressing to near-term production, and Atlas announcing its maiden resource report and DFS with a favourable cost position and low remaining capital expenditures. Additionally, Core Lithium released its restart study for the Finniss project, outlining a reduction in projected cash costs. Notwithstanding depressed lithium prices in Q2, key assets in the LRC portfolio continue to move forward, setting LRC up to deliver substantial organic growth in the years ahead,' said Ernie Ortiz, President and CEO of LRC. Article content LRC is reporting 14 Lithium Carbonate Equivalent tonnes (LCEts) or 170 Spodumene Concentrate Equivalent tonnes (SCEts) in the quarter 1, compared to 63 LCEts or 740 SCEts in the prior quarter. LCEts were lower in the quarter due to depressed lithium prices, shipment delays, and certain assets being on care and maintenance compared to prior periods. Since the lows at the end of June, lithium prices have rebounded 52% supporting stronger pricing, incentivizing counterparties to accelerate deliveries and increase volumes to market. Article content 3 months ended June 30, 6 months ended June 30, 2025 2024 Variance % 2025 2024 Variance % Royalty Revenue 127 1,549 (1,422) (92%) 756 2,180 (1,424) (65%) Depletion (25) (210) 185 (89%) (140) (352) (212) (61%) Gross Profit 102 1,339 (1,237) (92%) 616 1,828 (1,212) (66%) General and administrative expenses (1,557) (1,515) (42) (3,527) (3,244) (283) Net (loss) / income (2,302) 317 (2,619) (3,173) (728) (2,445) Income taxes (recovery) expense (63) 284 (347) (315) 121 (436) Finance income (250) (34) (216) (250) (96) (154) Depletion 25 210 (185) 140 352 (212) EBITDA (2,590) 777 (3,367) (3,598) (351) (3,247) Foreign exchange loss (gain) 6 7 (1) (9) 37 (46) One time IPO share-based compensation (SBC) 42 104 (62) 125 540 (415) Impairment expense 1,154 – 1,154 1,154 – 1,154 Other non-recurring income (158) (750) 592 (317) (750) 433 Adjusted EBITDA (1,546) 138 (1,684) (2,645) (524) (2,121) Article content Royalty revenue was $127 for the three months ended June 30, 2025, a decrease of $1,422 as compared to $1,549 in the same period of 2024. The decrease in revenue is primarily attributable to the suspension of production at the Finniss and Mt Cattlin projects, which were a source of revenue in the same period in 2024. Timing of shipments also negatively impacted revenue in the quarter, which is expected to reverse in the balance of the year. Spodumene prices declined by 36% compared to the same period last year, as reported by SMM. Article content At June 30, 2025, LRC held $28.0 million of cash and had no debt. On July 10, 2025, LRC renewed its existing normal course issuer bid (NCIB) allowing the Company to purchase up to 1.2 million common shares through July 9, 2026. Article content Portfolio Updates Article content Ganfeng Lithium Mariana Royalty: Article content The Mariana project was inaugurated in February 2025. The power lines have been connected. The project has excellent pumping rates, which should support an attractive low cost position. LRC expects inaugural royalty revenue from the asset to occur in 2H25 as production ramps up. Ganfeng expects the asset to reach nameplate capacity in 2026, subject to market dynamics Article content . Article content LRC holds a net 0.45% NSR royalty on the Mariana project. Article content Zijin Mining Tres Quebradas Royalty: Article content Construction at Phase 1 (20,000tpa LCE) of the project is complete and Zijin expects to start production in 2H25, subject to market dynamics. Zijin is evaluating improvements to the processing and design of the plant to improve operations for Phase 2 (30,000tpa LCE) operations. LRC holds a net 0.90% GOR royalty on the Tres Quebradas project. Article content Atlas Lithium Das Neves Royalty: Article content On August 4, Atlas Lithium Article content announced Article content the completion of the DFS for its Das Neves project in Brazil. The study estimates attractive returns with an estimated 11 month payback, which is underpinned by low operating costs of $489 per tonne and total AISC of $595 per tonne, inclusive of LRC's 3% gross overriding revenue (GOR) royalty. The project's mineral resource estimate in the DFS stands at 8.5Mt at 1.2% Li Article content 2 Article content 2 Article content . Atlas stated in its quarterly filing that expansion of life of mine is expected as additional mining pits are granted environmental permits in the future and Atlas conducts further exploratory drilling in those areas. The DFS confirms that the deposit remains open along strike and depth. The paid-for modular DMS plant has been delivered to a secure location in Minas Gerais, Brazil and Atlas expects the plant to support annual nameplate production of approximately 146,000 tonnes per annum of spodumene concentrate in Phase 1. The Das Neves project is a low-cost, near-term production asset with significant long-term expansion potential. Atlas Lithium has secured $40 million in pre-payment financing commitments to assist with the finalization of the plant. Article content Core Lithium Finniss Royalty: Article content released Article content a restart study repositioning the Finniss project as a globally competitive spodumene operation. The study outlines a 20-year mine life with annual production of 205,000 tonnes of 6% spodumene concentrate equivalent (SC6), at unit operating costs of A$690–$785 (US$450-$510) per tonne (FOB, SC6 equivalent). In addition, Core reduced pre-production capital expenditure by 29% to A$175–$200 (US$115-$130) million and holds all required permits, with critical infrastructure in place from the previous operation. Core Lithium has hired Morgan Stanley Australia as their corporate advisor to assist in financing the restart process. LRC holds a 2.5% GOR royalty on the Finniss project. Article content Power Metals Case Lake Royalty: Article content On July 29, Power Metals announced the successful completion of final metallurgical test work at its Case Lake project in Ontario, confirming the production of technical-grade cesium chemicals. SGS Canada achieved 97% cesium extraction from pollucite concentrate, producing cesium formate (99.8% purity) and cesium chloride (99.6% purity), meeting industry specifications for oil and gas, energy storage, and medical applications. These results follow a series of successful processing steps, including ore sorting, leaching, crystallization, and recrystallization. Case Lake is now positioned as a leading global cesium project with near-term production capacity. Combined with the recent maiden MRE confirming 13,000 tonnes of inferred resource at 2.4% Cs₂O at a 0.1% cut off grade from the West Joe Dyke, the project continues to demonstrate low processing complexity and commercial viability Article content 3 Article content . The company also outlined an 11,000-15,000 tonnes exploration target solely from the West Joe Dyke. Power Metals expects to begin cesium production at the Case Lake project in mid-2026. LRC holds a 2.0% GOR royalty on all minerals extracted and sold from the Case Lake project. Sayona Mining Moblan Royalty: Article content In July, Sayona Mining released the final results from its 2024 drilling campaign at the Moblan lithium project in Québec. The campaign included 116 new drill holes totaling 38,953 meters, contributing to a broader program of 76,202 meters across 281 holes. The updated geological model now incorporates over 33,000 validated assays, supporting the conversion of mineralization from inferred resource to measured and indicated resource categories. Drilling confirmed strong continuity of spodumene-bearing pegmatites across all major zones—Main, South, Inter, and Moleon—including sub-horizontal dykes extending over 2.3 kilometers. These results will inform an updated mineral resource estimate, which Sayona expects to release in the near term. LRC holds a 2.5% GOR royalty on the Moblan project. Article content Sinova Global Horse Creek Royalty: Article content Sinova Global has recently commenced drilling and blasting in anticipation of the commencement of production of silica quartz at the Horse Creek mine. Initial production is anticipated to be minimal as Sinova Global aims to optimize and calibrate the mine. LRC holds a GOR royalty on the Horse Creek project, assessed at 8.0% on revenues less than $45 million and 4.0% on revenues greater than $45 million. Article content Palkovsky Group Valjevo Royalty: Article content Palkovsky Group is developing the Valjevo critical minerals project in Serbia. During the quarter, the Palkovsky Group signed a memorandum of understanding with a major Middle Eastern industrial group for up to $50 million of equity investment and $500 million or more of project finance. Palkovsky Group also has advanced partnership discussions with a major global purchaser of borax and established a master services agreement with Worley, one of the world's largest engineering consultancies. In addition to their global partnerships, the Palkovsky Group is continuing to focus on developing relationships with all local stakeholders of the project as they advance through development. LRC holds a sliding scale royalty on lithium and borate products from the Valjevo project. Article content 2H25 – Inaugural royalty revenue from Ganfeng Lithium's Mariana lithium project 2H25 – Expected production commencement from Zijin's Tres Quebradas project 2H25 – Progression of Core Lithium restart process for Finniss lithium project restart led by Morgan Stanley Australia 2H25 – Atlas Lithium $40 million expected pre-payment funding 2H26 – Power Metals Case Lake cesium project to begin production 2026 – Sigma Lithium's phase 2 production start Article content Lithium Market Article content The lithium market is in a rebalancing phase as strong demand growth begins to absorb a high, but moderate, pace of supply expansion. Demand in the second quarter of 2025 was driven by continued momentum in electric vehicle (EV) sales and a strong start to the year for energy storage systems (ESS). BloombergNEF forecasts a 25% increase in global EV sales in 2025 compared to 2024 5. Article content In Q2, Chinese EV sales grew 31% year-over-year (y/y), supported by continued model introductions and increasingly affordable offerings. In the first half of 2025, Chinese EV sales rose 36% y/y. Demonstrating ongoing enthusiasm for EVs in China, Xiaomi unveiled its first electric SUV—the YU7—and reportedly received 289,000 non-cancellable orders within the first hour of launch. Historically, the first half of the year accounts for roughly one-third of annual Chinese EV sales, and 2025 exited the first half of the year on strong footing. Article content In Europe, battery electric vehicle (BEV) sales also started the year strong: year-to-date (YTD) through June sales rose 35% in the UK and Germany, 27% in Italy, and 84% in Spain. On a weighted average basis, these countries saw BEV sales rise approximately 42% in 1H25. Growth has been supported by OEM promotions, broader model availability, and more affordable price points. Looking ahead, Germany announced a fiscal program beginning July 2025 that supports EV adoption through special depreciation and tax relief measures. In parallel, the UK government will reintroduce direct consumer subsidies for EVs through a new £650 million scheme, offering up to £3,750 in discounts on eligible vehicles, alongside funding for additional public chargers. France and Italy have similarly announced further supportive initiatives for EV sales with France offering €370 million and Italy approving €600 million with the programs starting in September 2025. Article content In the United States, EV sales rose by mid-single digits in 1H25. Volatility may emerge in 2H25 following the scheduled expiry of the $7,500 EV tax credit on September 30, 2025. BloombergNEF estimates the U.S. accounts for ~7% of global EV sales, with China representing nearly two-thirds and Europe about one-fifth. Article content Energy storage systems, which account for roughly 20% of global lithium demand, continue to expand rapidly. Tesla reported a 48% y/y increase in energy storage deployments in 1H25 with most shipments occurring in Q1 ahead of anticipated Q2 tariffs. ICCSino, a leading industry research and consulting company in China, projects global ESS shipments to grow 54% in 2025, highlighting resilience in the sector despite macroeconomic uncertainty. Fastmarkets forecasts a 25% CAGR for ESS deployments from 2024–2034, with installations expected to exceed 1.6 TWh by 2035. Additional demand tailwinds are emerging from new and underappreciated sources not yet fully incorporated into major demand forecasts. These include robotics, drones, electric vertical take-off and landing vehicles (eVTOLs), electric marine shipping, and military applications. Declining battery costs and advances in battery chemistry are driving broader adoption beyond traditional sectors into emerging applications. Article content Spodumene prices declined 14% quarter-over-quarter to $714 per tonne in Q2 (CIF China, per SMM) and were down 36% y/y. Benchmark Minerals estimates that roughly 50% of global projects were uneconomic at June 2025 prices of $600–$650 per tonne. SMM data shows that as of August 14, 2025, prices stood at $937 per tonne . According to international media reports, China's leadership has recently acknowledged the effects of overcapacity in key industrial sectors, including lithium, where heightened competition has contributed to significant price declines. The phenomenon, referred to domestically as 'nejuan' or 'involution,' reflects an unsustainable cycle of internal competition and margin compression. One of the largest lepidolite mines in China halted operations on August 9 th following the expiry of its mining license, a development expected to tighten the lithium supply-demand balance in the near term. There are several more mines in China that are in the process of applying to certify their lithium resources by September 30, 2025. News agencies and industry consultants believe this could constrain supply further if the applications are delayed or not granted. Article content Benchmark Minerals forecasts lithium demand to grow 20% and lithium supply to grow 15% in 2025, which should reduce the current market surplus. Moderating supply additions, driven by weaker pricing, are expected to improve market balance and operating conditions over time. Article content Qualified Persons Article content The technical and scientific information contained in this news release was reviewed and approved in accordance with NI 43-101 by Don Hains, of the Hains Engineering Company Limited, a 'qualified person' as defined in NI 43-101. Article content Important Dates and Events Article content Shareholder Information Article content The Consolidated Financial Statements and Management's Discussion & Analysis are available on our website and SEDAR+. Article content Q2 2025 Conference Call Details Article content Date: August 15, 2025 Time: 11:00 AM EST Local – New York (+1) 646 564 2877 Local – Toronto (+1) 289 819 1520 Toll Free – North America (+1) 800 549 8228 Conference ID: 01092 Webcast: About Lithium Royalty Corp. LRC is a lithium-focused royalty company organized in Canada, which has established a globally diversified portfolio of 35 revenue royalties on mineral properties that are related to the electrification and decarbonization of the global economy. The Company's royalty portfolio is focused on the battery supply chain for the transportation and energy storage industries and is underpinned by mineral properties that produce or are expected to produce lithium, critical minerals, and other energy transition materials. Article content Forward Looking Statements Article content This press release contains 'forward-looking information' and 'forward-looking statements' within the meaning of applicable Canadian securities laws, which may include, but are not limited to, statements with respect to future events or future performance, management's expectations regarding LRC's growth, results of operations, estimated future revenues, performance guidance, carrying value of assets and requirements for additional capital, mineral resource and mineral reserve estimates, production estimates, production costs and revenue, future demand for and prices of commodities, Article content expected mining sequences, business prospects and opportunities, the performance and plans of third party operators and the expected exposure for current and future assessments and available remedies. In addition, statements relating to resources and reserves and mine life are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such resources and reserves or mine life will be realized. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budgets', 'potential for', 'scheduled', 'estimates', 'forecasts', 'predicts', 'projects', 'intends', 'targets', 'aims', 'anticipates' or 'believes' or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions 'may', 'could', 'should', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of LRC to be materially different from any future results, revenue, expenses, performance or achievements expressed or implied by the forward-looking statements. Forward-looking information is based on management's beliefs and assumptions and on information currently available to management. The forward-looking statements herein are made as of the date of this press release only and LRC does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Article content A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty revenue (including various lithium products); fluctuations in the value of the Canadian and Australian dollar and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which LRC holds a royalty or other interest are located or through which they are held; risks related to the operators of the properties in which LRC holds a royalty or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by LRC; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which LRC holds a royalty or other interest; whether or not the Company is determined to have 'passive foreign investment company' ('PFIC') status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which LRC holds a royalty or other interest; actual mineral content may differ from the resources and reserves contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks associated with the solvency of operators of projects that LRC has royalties over; risks and hazards associated with the business of development and mining on any of the properties in which LRC holds a royalty or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; and the integration of acquired assets. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which LRC holds a royalty or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities (including various lithium products) that underlie the asset portfolio; the Company's ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; no adverse development in respect of any significant property in which LRC holds a royalty or other interest; the solvency of project operators; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. LRC cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. Article content For additional information with respect to risks, uncertainties and assumptions, please refer to LRC's most recent Annual Information Form dated March 19, 2025 and filed with the Canadian securities regulatory authorities on These risks and uncertainties include, but are not limited to, those described under 'Risk Factors' in the Annual Information Form, and in particular risks summarized under the 'Risks Related to Mining Operations' heading. Article content Non-IFRS Measures Article content This earnings release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, the non-IFRS measures should not be considered in isolation or as substitutes for analysis of the financial information reported under IFRS. Article content EBITDA is a common metric used by investors and analysts to assist in their valuation of the Company. EBITDA is a non-IFRS financial measure, which excludes the following from net earnings: Article content In addition to EBITDA, we have determined that the following adjustments are necessary to arrive at Adjusted EBITDA, which we believe is a more accurate indicator of the Company's ongoing operational performance: Article content Management believes that EBITDA and Adjusted EBITDA are valuable indicators of our ability to generate liquidity by producing operating cash flow to fund working capital needs and fund acquisitions. These metrics are also frequently used by investors and analysts for valuation purposes, whereby the metrics are multiplied by a factor or 'multiple' that is based on an observed or inferred relationship between Adjusted EBITDA and market values to determine the approximate total enterprise value of a company. LRC believes these measures assist investors, analysts and our shareholders to better understand our ability to generate liquidity from operating cash flow, as LRC believes that the excluded amounts are not indicative of the performance of our core business and do not necessarily reflect the underlying operating results for the periods presented. Article content 3 months ended June 30, 6 months ended June 30, 2025 2024 Variance 2025 2024 Variance Net (loss) income (2,302) 317 (2,619) (3,173) (728) (2,445) Income tax (recovery) expense (63) 284 (347) (315) 121 (436) Finance income (250) (34) (216) (250) (96) (154) Depletion 25 210 (185) 140 352 (212) EBITDA (2,590) 777 (3,367) (3,598) (351) (3,247) Foreign exchange loss (gain) 6 7 (1) (9) 37 (46) One time IPO share-based compensation (SBC) 42 104 (62) 125 540 (415) Impairment expense 1,154 – 1,154 1,154 – 1,154 Other non-recurring income (158) (750) 592 (317) (750) 433 Adjusted EBITDA (1,546) 138 (1,684) (2,645) (524) (2,121) Article content 1 Non-recurring gains include the gain on disposition of royalty interest and expenses incurred related to the substantial issuer bid. Article content Article content Article content Article content Contacts Article content Contact Information for Inquiries: Article content Article content Jonida Zaganjori Article content Article content Article content Article content
News.com.au
27-06-2025
- Business
- News.com.au
Resources Top 5: Positive signs that lithium is waking from slumber
Argosy Minerals has executed a spot sales contract for the sale of 60 tonnes of battery quality lithium carbonate from its Rincon project Core Lithium is optimistic about a restart of the Finniss project in the NT Sunrise Energy Metals has received high-grade scandium assays from Syerston project Your standout small cap resources stocks for Friday, June 27, 2025 Argosy Minerals (ASX:AGY) Lithium has been trading at cyclical lows for months but leading mining journalist Kristie Batten says positive signs are emerging and analysts are beginning to focus on when the price recovery would start. In a Stockhead article ' Smart money bets on a lithium turnaround ' she wrote that a global survey of 90 institutional investors by London-based mining industry advisory firm Harbour found that roughly half were looking for upside exposure to the energy transition above anything else from equities in the natural resources space. Investors were asked which commodities were the most likely to see increased investment, with more than 80% across Australia, Canada, the US, UK and Europe citing gold as their top pick. While that isn't the least bit surprising, given where the price has gone, what jumped out was an enthusiasm for lithium, the price of which has gone in the opposite direction. The research found that lithium edged out copper as the second most likely commodity to attract investment in Australia (65%), Canada (59%), US (61%) and UK/Europe (63%). A report on the lithium sector from Argonaut last week pointed to positive demand drivers, Batten wrote, with electric vehicles being the early driver and battery energy storage systems growing in importance. Optimism surrounding lithium has resulted in some stocks running hot including bellwether Pilbara Minerals, which hit a two-week high of $1.41. Argosy Minerals (ASX:AGY) rose 53.9% to a daily high of 2.3c and closed at 1.8c after executing a spot sales contract with a Hong Kong-based chemical company for the sale of 60 tonnes of battery quality >99.5% lithium carbonate from its Rincon project in the 'Lithium Triangle' in Argentina. Argosy managing director Jerko Zuvela said 'We were pleased to receive such strong interest for the sale of our battery quality lithium carbonate product. "With our positive project fundamentals, we will be strong beneficiaries of the EV/lithium sector resurgence noting the significant development milestones achieved to date at our Rincon "We are delighted to be part of an exclusive group of battery quality lithium carbonate product exporters, given the challenges encountered by many of our peers attempting to achieve this feat.' Core Lithium (ASX:CXO) A lithium price slump victim has been Core Lithium and its Finniss hard-rock lithium project in the Northern Territory, 88km southwest from the Darwin Port. Early works at the BP33 deposit were suspended in late 2023, mining at Grants was suspended in January 2024 and processing in mid-2024, with all infrastructure placed on care and maintenance for any potential restart. A restart study completed in mid-May 2025 has repositioned Finniss as a highly attractive low-cost operation with a 20-year life of lean underground operations. The study outlines a high confidence production plan with 94% of the first 10 years backed by ore reserves and includes: Mining costs reduced by 40% to $63–$72/t (from $120/t); Processing costs cut by 33% to $40–$46/t(from $69/t); Unit operating costs of $690–$785/t (FOB, SC6 eq ex-royalties), placing Finniss among the most competitive global spodumene operations; and Concentrate production lifted 7% to ~205ktpa SC6 equivalent. 'The plan we've outlined capitalises on the project's strengths, including established infrastructure, high-grade ore bodies well-suited to low-cost underground mining and a process plant with proven recoveries and further scope for optimisation,' Core Lithium (ASX:CXO) CEO Paul Brown said. 'We've undertaken a rigorous, bottom-up review of every aspect of the operation. The study brings together our operating experience to deliver a plan that is more robust, more efficient and built for the long term. 'At BP33, we are developing a large-scale underground mine. Grants will shift to underground mining, cutting costs and doubling its mine life. Carlton will use Grants' surface infrastructure, supporting a 20 year mine life. Blackbeard offers further potential to extend mine life and expand operations. 'Our plant upgrades will improve recovery and reduce contaminants, whilst keeping capital costs low. These improvements include enhanced screening with more affordable crushing and the addition of a gravity circuit. 'The study outlines a lower-cost, longer-life and scalable operating plan that generates free cash flow of $1.2 billion, representing a six-fold return on pre-production capital.' A Final Investment Decision for the restart remains subject to board approval and is contingent on market conditions and securing a suitable funding pathway. Optimism surrounding the Finniss restart and the lithium industry's future has seen shares as much as 18% higher to 10.5c. CXO closed at 9.9c with more than 61 million shares changing hands. Sunrise Energy Metals (ASX:SRL) It has been a big week for Sunrise Energy Metals - a $6 million placement finalised, $1.5m share purchase plan launched with strong initial uptake and high-grade scandium assays returned from its flagship Syerston project in Central West NSW. The assays saw shares increase to a 12-month high of $1.205, a lift of 34.64% on the previous close. From 65c on June 23, SRL has risen 85.4% in five days. A 125 hole RC drilling campaign totalling 3,589 drill metres in April and May 2025 had the aim of expanding the zones of higher-grade scandium at the Syerston deposit. More than half of the total 3,574 assays have been received from 49 drill holes, indicating multiple new areas of continuous, high-grade mineralisation. Significant intersections include: 7m at 884ppm Sc from 1m, including 3m at 1123ppm from 4m; 6m at 788ppm from 4m; 13m at 743ppm from 6m; 5m at 714ppm from 3m; and 7m at 666ppm from 4m. Once complete and released, all results from the drilling will be incorporated into an update to the Syerston resource estimate, which will underpin a feasibility study update. 'Recent drill results have identified further zones of continuous, high-grade scandium mineralisation within our Sunrise Mining Lease and they remain open in multiple directions,' Sunrise Energy Metals managing director Sam Riggall said 'These zones will form the basis of an initial multi-decade mine plan for our Syerston Scandium Project Feasibility Study, targeting rapid, low-cost development and production options, supported by one of the largest and highest-grade scandium resources in the world.' Red Mountain Mining (ASX:RMX) Australia's antimony hotspot is the New England region of northern NSW and one of the juniors looking to start producing the in-demand critical mineral is Red Mountain Mining, which hit a high of 1.5c, a lift of 67% on the previous close, with more than 110m shares changing hands. The boost came after the company returned high-grade antimony results from rock chip samples at Oaky Creek prospect in the Armidale project. Results from samples collected up to 500m along strike from historical workings include 28.34%, 28.33% and 16.38% Sb, which suggest potential for a large orogenic antimony mineral system. Shallow costeaning is planned to expose the bedrock beneath strong soil antimony anomalies with no visible outcrop while RMX also plans to undertake soil and rock chip sampling over the East Hills antimony and Horsley Station gold prospects in the southern portion of the project. Similar systems, such as Larvotto's (ASX:LRV) Hillgrove deposit, also in the Southern New England Orogen, typically also contain high-grade gold mineralisation. RMX has submitted a subset of the Oaky Creek rock chip samples for gold analysis by lead fire assay, with results expected in July. D3 Energy (ASX:D3E) South Africa is hungry for new energy sources and D3 Energy is taking steps to feed the demand with gas from its ER315 licence at Bloemskraal in the Free State with shares reaching 15c, a lift of 36.36% on the June 26 close, before closing at 14.5c This followed the company achieving increased flow rates at RBD03 following a well clean out. RBD03 flowed at an average gas flow rate of 201 Mscfd over the initial 7-day period, which was 35% higher than the previous flow rate measured before the well clean out. Total gas produced over the initial 7-day testing period was 1,396 Mscf and testing will continue for another seven days before the well will be shut in to analyse the pressure buildup data. The company undertook a multi-well production testing program at Bloemskraal last year which included RBD03, a gold exploration borehole drilled in 1982. Analysis of the initial production test in July and August last year showed indications that there may have been some obstructions or debris in the wellbore. A work over to clean out any obstructions was performed at RBD03 on May 7, 2025, and some issues were encountered with an historical undocumented hole size change curtailing operations. The well was nonetheless partially cleaned out and shut in to allow the reservoir pressure to build back up prior to retesting. This flow testing commenced on June 13, 2025, following the build-up period and the 7-day results demonstrate a 35% increase in the stabilised flow rate.
Yahoo
21-06-2025
- Business
- Yahoo
Growth Investors: Industry Analysts Just Upgraded Their Core Lithium Ltd (ASX:CXO) Revenue Forecasts By 13%
Core Lithium Ltd (ASX:CXO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Core Lithium will make substantially more sales than they'd previously expected. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Following the upgrade, the consensus from four analysts covering Core Lithium is for revenues of AU$675k in 2025, implying a disturbing 99% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of AU$595k in 2025. It looks like there's been a clear increase in optimism around Core Lithium, given the solid increase in revenue forecasts. See our latest analysis for Core Lithium These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Core Lithium's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 99% by the end of 2025. This indicates a significant reduction from annual growth of 75% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Core Lithium is expected to lag the wider industry. The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Core Lithium. Analysts are definitely bullish on Core Lithium, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified . Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
News.com.au
14-05-2025
- Business
- News.com.au
Resources Top 5: Core's Finniss could reemerge as one of the world's most cost competitive lithium mines
Core Lithium lays out low-cost path back to production for Finniss project in NT Highfield sells the farm (supplies) to China Nimy starts gallium drilling at Block 3 in WA These are your standout small cap resources stocks for Wednesday, May 14, 2025. Core Lithium (ASX:CXO) Core's Finniss operation was the earliest casualty of the epic collapse in lithium prices across 2023, shutting up shop in early 2024 as the small scale NT lithium mine ran into heavy lossmaking territory. That prompted a major rethink, return to exploration and change of management. The fruits of that labour have now been floated for the market to see, with a new study suggesting a restarted mine would be among the most cost competitive spodumene operations globally. Finniss, then focused around the Grants open pit, was running at a unit cost of $1953/t in its last quarter of full operations (December 2023). The new study, focused on a 20-year underground mine at the BP33 deposit, would run at just $690-785/t FOB on an SC6 (6% Li2O concentrate) basis, with mining costs down 40% and processing costs 33% lower. Concentrate production would also rise 7% to 205,000tpa SC6, with recoveries of 78% and pre-production capex chopped 29% from $282m to $175-200m. Morgan Stanley has been appointed as Core's corporate advisor to lead its funding strategy "with a focus on minimising dilution for shareholders", suggesting debt funding will be a key pillar of the junior's strategy. Any FID, of course, depends on market conditions and funding. Spodumene is currently priced around multi-year lows of US$700/t, according to Fastmarkets. Core's study assumes a long-term lithium price of US$1300/t to come to its free cash flow number of $1.2bn. Nevertheless, Core CEO Paul Brown said the restart plan focused on Finniss' strengths after a 'rigorous, bottom-up review of every aspect of the operation.' "The Study brings together our operating experience to deliver a plan that is more robust, more efficient and built for the long term," he said. "At BP33, we are developing a large-scale underground mine. Grants will shift to underground mining, cutting costs and doubling its mine life. Carlton will use Grants' surface infrastructure, supporting a 20 year mine life. "Blackbeard offers further potential to extend mine life and expand operations. Our plant upgrades will improve recovery and reduce contaminants, whilst keeping capital costs low. "These improvements include enhanced screening, with more affordable crushing and the addition of a gravity circuit. This resets Finniss as a more resilient operation to price volatility, and will be a reliable source of high-quality, coarse-grained spodumene concentrate. "The Study outlines a lower-cost, longer-life, and scalable operating plan that generates free cash flow of $1.2 billion, representing a six-fold return on pre-production capital." Core shares have tumbled 94% from their 2022 highs of $1.67, but hit a near four month high of 9.6c after the release of the restart study. A major catalyst to upscale the project could come from Blackbeard, which has an exploration target of 7-10Mt at 1.5-1.7% Li2O, well above the reserve of 10.73Mt at 1.29% Li2O in terms of grade. Argonaut's Hayden Bairstow has a 17c price target and spec buy rating on Core, saying the study came in stronger than expected. "Unit costs were 25% lower than we had expected, and an impressive 40% lower than the previous study," he told clients in a note. "The exploration target for Blackbeard highlights the potential to add a second material ore source, which could push the mine life beyond 20 years, sustaining production at the ~205ktpa (SC6) capacity rate, or underpin an expansion beyond the base case." Highfield Resources (ASX:HFR) While the idea of competing with China has become a PR gold mine for critical minerals stocks, Chinese capital is still a major bonus for a small cap if you can get it. And Owen Hegarty-backed Highfield Resources is certainly in that camp, surging on Wednesday after coming out of a trading halt to reveal a raising that will pump US$300 million of fresh equity capital into the $70m capped firm from Qinghai Salt Lake. Qinghai is a subsidiary of Chinese industrial giant China Minmetals, and has signed a non-binding letter of intent to deliver the raising conditional on the completion of Highfield's acquisition of the Southey potash project in Saskatchewan, Canada, from Yankuang Energy, the main shareholder of Aussie coal producer Yancoal. Qinghai would wind up with controlling power over Highfield if the deal goes through. The firm, which owns the Muga potash project in Spain, has long been backed by Owen Hegarty's EMR Capital and connected shareholders. Shenzhen-listed QSL currently produces some 5Mt of potash fertiliser and 40,000t of lithium carbonate, and is the largest producer of the agricultural product in China. The deal follows the resignation just last week of Highfield's CEO and MD Ignacio Salazar. Meanwhile, EMR will provide €1.15 million in a standby loan facility to keep the lights on as it moves to complete the deals with Yankuang and now Qinghai. 'The support from EMR reflects its commitment to Highfield and the strategic value of the Muga Project. The Company is undergoing a natural evolution as it moves closer to securing the right partnership structure for development," HFR chair Paul Harris said. Qinghai will have exclusive rights to conduct due diligence until June 30. Now to some real microcap stuff, as $2m Carbine Resources, priced cheaper than a Cottesloe condo, runs 50% on the news that it has a mining lease for its Muchea West Silica Sand project. It's not total, the newly granted mining lease covers "a portion" of the 110Mt at 99.65% SiO2 resource at Muchea West. The balance is on a granted exploration licence called E70/4905. There's a further catch. Having a mining lease doesn't mean Carbine can go in and mine the high grade silica sands (used for glassmaking and more) from the site, located next to the Pinjar Rifle Range. Mining remains subject to a host of statutory approvals and consents, including environmental approvals and consents relating to the Muchea Air Weapons Range. "The Company has been working closely with key project stakeholders, including DEMIRS and the Department of Defence, for a considerable period to progress towards securing a mining lease and will look to build on these relationships through the next approvals phase," the company said in a statement on Wednesday. "Further updates will be provided to shareholders in due course. In order to allow the grant of M70/1433, the Company withdrew its previous mining lease application M70/1422 and exploration licence application E70/6625 which encroached on M70/1433." CRB also owns the Down South silica sand project over 58km2 of exploration licences 10km southeast of Bunbury, where it recently secured access agreements with three landowners, paving the way for on-ground exploration to begin. Nimy Resources (ASX:NIM) Nimy shares are on a run, climbing close to 15% for the second straight day after announcing the start of a second round of drilling at the Block 3 project, part of its broader Mons project ~370km northeast of Perth. Block 3 is a potentially unique Western source of gallium. Typically produced as a by-product of alumina and zinc refining, Block 3's high grades and mineralogical characteristics mean it could shape up as a rare primary source of the metal, known for its performance-enhancing properties in semi-conductor chips, solar panels, EV and wind turbine motor magnets, LCDs and more. The metal's supply chain is also ~98% controlled by China, placing strategic importance on discoveries outside of the Middle Kingdom. Nimy already has a partnership with M2i Global, a group which could facilitate potential sales to the US Department of Defense should the project prove economic. The next key step is to deliver a maiden resource estimate, a potential outcome from the current and next round of drilling. Block 3 boasts an exploration target of 9.6-14.3Mt at 39-78ppm gallium. But mineralogical assessments by the CSIRO have shown the chloritic schist rocks believed to host the highest concentration of the metal could run 400-800ppm gallium. 'The commencement of this round of drilling at the Block 3 Gallium discovery is significant as we move forward in defining a world class JORC compliant high grade gallium deposit,' Nimy managing director Luke Hampson said. 'Concurrently, Curtin University are working on metallurgical testing following CSIRO identification of high grade 400-800 g/t gallium in chlorite. 'These exploration milestones move Nimy closer to meeting the need of gallium customers who have made initial enquiries as to our progress.' Drilling is expected to take three weeks, with results due thereafter. NIM shares have lifted 50% YTD. (Up on no news) Asimwe Kabunga's RMI is another very small cap, though it's slightly larger today after an 80%+ run in its shares. No news to speak of on market, but RMI did have some exploration updates from its Stalike and Kabungu prospects at the Mpanda copper, gold and nickel project in Tanzania to digest on Tuesday morn. Previously announced results have included rock samples of up to 36.7g/t Au and 11.89% Cu from Kabungu and 13.58% Cu and 3.24g/t Au from Stalike. RC drilling has also hit narrow gold intercepts in shallow locations at Kabungu. Located close to the operation Katavi processing plant, RMI says ongoing sample analysis of auger drilling and soil samples will be combined with previous exploration results from Kabungu and Stalike to generate drilling targets. 'Ongoing exploration activities at our highly prospective Mpanda Copper-Gold Project have produced some spectacular high grade results and they are helping the Company define opportunities for exploitation of potential economic resources within our extensive tenement package," exec chair Asimwe Kabunga said on Tuesday. "Our goal is to identify one or more significant Copper-Gold projects at Mpanda, and we have every confidence that we can achieve this. A targeted drilling programme is planned for the Stalike and Kabungu prospects following completion of this current soil and auger sample analysis work stream. "Mpanda is clearly a richly endowed mineralised system. The extensive number of small scale operations demonstrate that systematic, modern exploration has the potential to define larger scale Copper-Gold systems.'
Yahoo
06-02-2025
- Business
- Yahoo
3 ASX Penny Stocks With Market Caps Over A$40M
The Australian share market is poised for a positive start today, with the ASX 200 expected to rise by up to 0.7%, buoyed by easing concerns over trade tariffs and geopolitical tensions. In this context, investors often seek out opportunities that offer both growth potential and affordability, making penny stocks an intriguing option despite their somewhat outdated label. These stocks typically belong to smaller or newer companies, and when they come with strong financial health, they can present valuable opportunities for those willing to explore them further. Name Share Price Market Cap Financial Health Rating Embark Early Education (ASX:EVO) A$0.78 A$143.12M ★★★★☆☆ LaserBond (ASX:LBL) A$0.57 A$66.82M ★★★★★★ Austin Engineering (ASX:ANG) A$0.505 A$313.17M ★★★★★☆ MaxiPARTS (ASX:MXI) A$1.90 A$105.1M ★★★★★★ GTN (ASX:GTN) A$0.5425 A$106.53M ★★★★★★ Helloworld Travel (ASX:HLO) A$2.02 A$328.89M ★★★★★★ SHAPE Australia (ASX:SHA) A$3.00 A$248.73M ★★★★★★ IVE Group (ASX:IGL) A$2.18 A$337.66M ★★★★☆☆ SKS Technologies Group (ASX:SKS) A$1.59 A$243.19M ★★★★★★ Nickel Industries (ASX:NIC) A$0.745 A$3.2B ★★★★★☆ Click here to see the full list of 1,031 stocks from our ASX Penny Stocks screener. We'll examine a selection from our screener results. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Core Lithium Ltd focuses on developing lithium and various metal deposits in Northern Territory and South Australia, with a market cap of A$197.16 million. Operations: The company's revenue is derived entirely from the Finniss Lithium Project, generating A$189.49 million. Market Cap: A$197.16M Core Lithium Ltd, with a market cap of A$197.16 million, focuses on the Finniss Lithium Project as its primary revenue source, generating A$189.49 million. Despite being debt-free and having stable weekly volatility over the past year, Core Lithium remains unprofitable with losses increasing by 82.2% annually over five years and a negative return on equity of -80.59%. The company has sufficient short-term assets to cover liabilities but faces less than a year of cash runway based on current free cash flow trends. The management team is relatively new, with an average tenure of 0.8 years. Take a closer look at Core Lithium's potential here in our financial health report. Review our growth performance report to gain insights into Core Lithium's future. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: IPD Group Limited is an Australian company that distributes electrical infrastructure, with a market cap of A$432.40 million. Operations: The company generates revenue from its Products Division, which accounts for A$270.68 million, and its Services Division, contributing A$19.74 million. Market Cap: A$432.4M IPD Group Limited, with a market cap of A$432.40 million, demonstrates financial stability and growth potential in the electrical infrastructure sector. The company forecasts revenue growth for 1H25, with EBIT expected between A$19.2 million and A$19.8 million, indicating positive momentum. IPD's earnings have grown significantly over the past year by 39.1%, outpacing industry averages, while maintaining a satisfactory net debt to equity ratio of 5.8%. Short-term assets exceed both short- and long-term liabilities, highlighting strong liquidity management. Although its Return on Equity is relatively low at 14.8%, the company's price-to-earnings ratio suggests good value compared to industry peers. Jump into the full analysis health report here for a deeper understanding of IPD Group. Gain insights into IPD Group's future direction by reviewing our growth report. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Investigator Resources Limited, along with its subsidiaries, is involved in the exploration of mineral properties in Australia and has a market capitalization of A$41.31 million. Operations: The company's revenue segment is focused on Mineral Exploration, generating A$0.01 million. Market Cap: A$41.31M Investigator Resources, with a market cap of A$41.31 million, remains pre-revenue with only A$14K generated from mineral exploration. Despite being unprofitable, the company has reduced its losses by 21.1% annually over the past five years and benefits from an experienced management team averaging 6.2 years in tenure. Investigator is debt-free and has short-term assets of A$4.6 million exceeding both short- and long-term liabilities, providing some financial stability despite high share price volatility and limited cash runway under one year based on current free cash flow trends. Click here to discover the nuances of Investigator Resources with our detailed analytical financial health report. Assess Investigator Resources' previous results with our detailed historical performance reports. Click here to access our complete index of 1,031 ASX Penny Stocks. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Jump on the AI train with fast growing tech companies forging a new era of innovation. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:CXO ASX:IPG and ASX:IVR. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
