This ASX lithium rocket is closing in on a multi-year breakout again

Core Lithium Ltd (ASX: CXO) shares are back in the spotlight on Thursday as the lithium comeback recovery keeps gathering pace.

In afternoon trade, the Core Lithium share price is up 8.07% to 33.5 cents after earlier touching 35 cents. That leaves the stock just below its January multi-year high of 36 cents.

The move extends what has already been a remarkable rebound, with the shares up 45% over the past month and an eye-catching 415% over 12 months.

With the stock back near its highs, buying interest is building around the Finniss restart.

Here’s what is supporting the latest move.

Finniss restart momentum keeps building

The main catalyst remains continued progress toward restarting the Finniss lithium project in the Northern Territory.

Recent updates show Core has moved beyond outlining a restart and into active execution.

The company recently reached final investment decision (FID) on the Finniss restart, with work expected to commence within weeks and first ore from the Grants deposit targeted shortly after.

The move from study work to on-site activity appears to be giving investors more confidence in the restart.

The Grants open pit offers a faster and lower-risk route back into production, while BP33 underground development continues alongside it. The staged restart lowers upfront risk while preserving the longer-term mine life opportunity.

A recent stockpile sale agreement with Glencore has also supported liquidity and helped re-establish logistics through Darwin Port. This is yet again another sign that the restart is edging closer to production.

Lithium prices are adding fuel

The commodity backdrop is also doing plenty of the heavy lifting.

Lithium carbonate prices in China have risen to around CNY 167,500 per tonne, up more than 134% over the past year.

Higher lithium prices improve the earnings outlook for Core Lithium because Finniss was one of the first Australian lithium operations to shut during the downturn.

As battery material sentiment improves, investors are now returning to lithium stocks with restart potential.

Foolish takeaway

I think today’s move reflects growing confidence that Finniss is getting closer to generating cash again.

The mix of higher lithium prices, restart progress, and the stock trading just below its January high is keeping momentum with Core Lithium.

After a 415% gain over 12 months, the easy re-rating has likely already played out.

The next move likely depends on whether management can deliver the restart on time into supportive lithium prices.

If those milestones keep landing, a move through 36 cents and into a fresh multi-year high looks very achievable.

The post This ASX lithium rocket is closing in on a multi-year breakout again appeared first on The Motley Fool Australia.

More reading

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• ASX 200 mining shares rebound after March sell-off creates opportunities
• Why A2 Milk, BWP, Core Lithium, and Newmont shares are sinking today
• Core Lithium shares tumble after $120m capital raising for Finniss restart
• 5 things to watch on the ASX 200 on Thursday

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.