Core Lithium shares leapt 9% following this week’s results release, but why?

Happy miner with his had in the air.Happy miner with his had in the air.

The Core Lithium Ltd (ASX: CXO) share price continued its positive run today, climbing 2.67% to $1.155 at market close.

This comes after the company released its quarterly results on Wednesday, highlighting its progress at the Finniss Lithium Project in the Northern Territory.

With no other news released, shares in the ASX lithium developer are now up more than 9% for the week.

What’s powering Core Lithium shares ahead?

Investors have been snapping up Core Lithium shares as investor confidence in the sector picks up.

Shares in fellow lithium miners Lake Resources NL (ASX: LKE) and Liontown Resources Ltd (ASX: LTR) are also surging today, up 4.52% and 3.53%, respectively.

According to its quarterly report, Core Lithium has been ramping up its construction and mining activities at Finniss to export its first lithium carbonate by the end of 2022.

The progress comes despite some headwinds encountered last quarter, such as supply chain disruptions, inflationary cost pressures and COVID-19 absenteeism.

Once Finniss is online, it will be Australia’s first lithium-producing mine outside of Western Australia.

The bigger picture

As demand for electric vehicles and renewable energy heats up, Core Lithium will be crucial in servicing the lithium supply gap.

This will be particularly important as the Australian government focuses on increasing the onshore capabilities of refining such critical minerals.

If lithium prices remain stable from here, this could translate to bumper revenues for Core Lithium, given the current market.

The price for lithium carbonate is currently fetching around US$70,600 a tonne, up 430% year-on-year.

Core Lithium share price snapshot

It has been an excellent year for Core Lithium shareholders, with the company’s shares up 94% over the last seven months and a whopping 320% higher since this time last year.

Based on today’s price, Core Lithium has a market capitalisation of roughly $1.85 billion, with more than 1.73 billion shares outstanding.

The post Core Lithium shares leapt 9% following this week’s results release, but why? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Core Lithium Ltd right now?

Before you consider Core Lithium Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Core Lithium Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/Kgc9sZU

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s