What's Happening?
Core Lithium, listed on the ASX, has entered into a fixed-price agreement with Glencore for the sale of its remaining spodumene concentrate stockpile at the Finniss lithium project in the Northern Territory. The agreement covers approximately 5,100 dry
metric tonnes of spodumene concentrate, with pricing reflecting a Fastmarkets SC6 CIF China equivalent price of $2,023 per tonne. Payment is expected in the June quarter of 2026. The sale will be effected through the existing Finniss logistics chain to Darwin port, supporting a potential operational restart. Core retains an estimated 75,000 dmt of lithium fines stockpiled at Finniss, which remain available for potential sale.
Why It's Important?
The agreement with Glencore provides Core Lithium with additional funding and market engagement, supporting its strategy to restart operations at the Finniss project. The sale price, significantly higher than previous estimates, reflects the strength of the lithium market and enhances Core's financial position. The transaction also helps remobilize the logistics chain, positioning the company for future operational activities. The retained lithium fines stockpile offers further potential for revenue generation, providing Core with flexibility in its strategic planning and financial management.
What's Next?
Core Lithium will focus on executing the sale agreement with Glencore and receiving payment in the June quarter of 2026. The company will also explore opportunities to sell its remaining lithium fines stockpile, potentially generating additional revenue. As Core considers restarting operations at the Finniss project, it will need to assess market conditions and operational requirements to ensure a successful and sustainable restart. The company's ability to navigate these challenges will be critical in achieving its strategic objectives and maximizing shareholder value.
