Up 414% in a year, why is the Core Lithium (ASX:CXO) share price leaping 11% today?

The Core Lithium Ltd (ASX: CXO) share price is surging today, up 11.3% at the time of writing.

Shares in the ASX lithium explorer closed yesterday at 97 cents and are currently trading for $1.08.

The Core Lithium share price gains come despite the broader All Ordinaries Index (ASX: XAO) dipping into the red, currently down 0.6% so far today.

Core Lithium released its results for the half year ending 31 December (1H FY22) just before market close yesterday. Below we look at some of the highlights from that report.

What results did the ASX lithium explorer report?

The Core Lithium share price is charging higher despite a period of mounting losses over the half year.

That’s likely because Core is transitioning from an explorer to a lithium producer. To that end, during the half year it transitioned to “larger premises to cater for a growing workforce and corporate demands on the business”.

With expenses up, the company reported a consolidated net loss of $3.28 million, up from a net loss of $915,000 in the prior corresponding half year.

Core Lithium’s basic earnings per share came in at a loss of 0.22 cents per share (cps), compared to a loss of 0.9 cps in 1H FY21.

There was no dividend paid for the half year, in line with the prior corresponding period.

The company ended the half with a strong balance sheet, holding cash and cash equivalents of $157 million as at 31 December. That was up from $38 million on 30 June. Core attributed this to receiving $143 million (net of fees) from its capital raisings in August.

What’s next?

The Core Lithium share price has been a strong performer, with investors eyeing the pending completion of its Finniss Lithium Project, located near Darwin Port in the Northern Territory.

According to the company, this will be “one of Australia’s most capital efficient and lowest cost hard rock spodumene lithium projects”.

Lithium is a key element in most batteries needed to power the fast-growing EV market, and prices remain at historic highs.

The Core Lithium share price could be getting a boost as the company reiterated its plans to produce its first lithium concentrate late in 2022:

Core’s entry to market as a lithium producer is well timed to capitalise on the growing demand for high-quality spodumene concentrate…

Finniss is now fully funded and fully permitted, approximately 80% of Stage 1 for the first four years is now under binding offtake agreements, construction at Finniss has commenced and the company is on track for production of first lithium concentrate in Q4 of 2022.

Core Lithium share price snapshot

The Core Lithium share price has surged 414% since this time last year, leaving the 6% one-year gains posted by the All Ords truly in the dust.

Core Lithium shares have continued to outperform this year, up 71% since the opening bell on 4 January.

The post Up 414% in a year, why is the Core Lithium (ASX:CXO) share price leaping 11% today? appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Nickel Mines, SG Fleet, and Whitehaven Coal are pushing higher
• Why Argosy Minerals, Block, Core Lithium, and Mineral Resources are storming higher
• Here’s why the Core Lithium (ASX:CXO) share price is shooting 9% higher today
• 5 ASX shares making big news this week
• How did ASX lithium shares perform in February?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/rlb1wvm