[SMM Analysis] Core Lithium Boasts Bolstered Assets and Outlines Enhanced Finniss Restart Plan

As of the end of the current period, Core Lithium Ltd's (Core) bank balance has increased compared to the previous quarter. Through a series of strategic decisions, the Company has effectively reduced liabilities, resolved legacy contracts, and strengthened its overall financial position.

Currently, the Company holds approximately 5,000 tonnes of lithium concentrate and 75,000 tonnes of lithium fines in inventory, which can be monetized as market conditions improve. In late August 2025, Core initiated a capital raising, successfully securing funds through a two-tranche Placement and a Share Purchase Plan (SPP), providing further financial support for project advancement and operations. To support the potential future restart of the Finniss Lithium Project, Core has reached an agreement with Tesla. The parties have executed a comprehensive and binding settlement agreement, formally terminating negotiations for an offtake agreement. The specific terms of the settlement are confidential; however, as part of the agreement, both parties have agreed to a full and final release of all potential claims related to the previously disclosed dispute. This settlement resolves all offtake contracts and related obligations, leaving all future Finniss production unencumbered.

Regarding lithium project operations, following the release of the Finniss Restart Study on 14 May 2025, the Company has continued to de-risk and refine the operating plans for the Finniss operation. Based on the latest geotechnical assessment results from the Grants deposit, Core has identified significant opportunities to bring forward revenue and reduce the pre-production capital cost for the Grants mine.

Under the revised mine plan, the Grants mine will commence with open-pit mining before transitioning to underground mining. This approach is expected to lower the rebuild cost for Grants and accelerate the timing of first ore and revenue. The pre-production capital cost for the Grants mine is now estimated to be A$35–45 million lower than the estimate in the Restart Study. Furthermore, by modifying the underground mining method to incorporate backfilling using tailings that can be recovered from both the Grants mine and underground development at the Carlton prospect, underground recovery rates are maximized.

Under the revised plan, an updated Ore Reserve Estimate (ORE) for the Grants deposit has been completed, showing a 33% increase in total tonnage and a 44% increase in contained metal. The upgrade to the Grants ORE is supported by substantial work completed. The Ore Reserves and related assumptions were developed and supported by independent consultants and Core's Competent Persons. The Mineral Resource Estimate (MRE) for the Finniss Project (including the Grants deposit) remains unchanged. The total project Ore Reserve Estimate has increased to 15.6 million tonnes at 1.27% Li₂O.

At the Blackbeard prospect, the FY26 diamond drilling program continues. This program is designed to test the geology and lithium mineralization at depth within the exploration target.

On project advancement, key technical work encompassing geotechnical studies, water management, mine design, and operating sequencing progressed during the quarter and remains on schedule to support a Final Investment Decision (FID). This work has further de-risked the restart plan and is aligned with the scope set out in the Restart Study.

The strategic financing process is progressing on schedule and continues to attract interest from high-quality counterparties. Recent improvements in lithium market conditions are providing greater flexibility and optionality for the process.

Source: Core Lithium official website, compiled by SMM