Home / Sector / Resources Shares / Why is the Core Lithium price rebounding today?

Why is the Core Lithium price rebounding today?

Core Lithium is outperforming multiple ASX lithium shares today.

Posted by
Monica O'Shea
Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.
Published
| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The Core Lithium share price is lifting 3.48% today 
  • This follows the company's share price tumbling 6% yesterday 
  • Core Lithium has received positive broker coverage this week amid looming FY23 production at the company's Finniss Lithium Project. 

The Core Lithium Ltd (ASX: CXO) share price is in the green today.

Core Lithium shares are rising 3.48% and are currently trading at $1.04.

Let's take a look at what could be weighing on the Core Lithium share price today.

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Image source: Getty Images

What's going on?

Core Lithium shares are outperforming multiple ASX lithium shares today. The Sayona Mining Ltd (ASX: SYA) share price is lifting 1.25% today, while Lake Resources N.L. (ASX: LKE) shares are up 0.95% and Allkem Ltd (ASX: AKE) shares are up 0.34%. However, the Pilbara Minerals Ltd (ASX: PLS) share price is 0.39% in the red.

In US markets overnight, lithium shares also had a mixed performance. The Sociedad Quimica y Minera de Chile share price (NYSE: SQM) climbed 1.63%, while Albemarle Corporation (NYSE: ALB) shares leapt 0.069%. meanwhile, Lithium Americas Corp (NYSE: LAC) shares slid 3.47%.

Core Lithium shares descended 6% on the market yesterday. Investors could be buying the dip in light of recent positive broker coverage on the company's shares. Macquarie lifted Core Lithium to outperform this week with a $1.30 price target.

The broker is tipping Core Lithium to generate a high level of free cash flow in FY24 and FY25. Core Lithium is developing the Flinders Lithium Project in the Northern Territory. Core Lithium states Finniss is "one of the most capital efficient lithium projects" in Australia. First spodumene concentrate production from this project is due in the first half of 2023.

Last week, Core Lithium advised it is making "good exploration progress" at the Finniss project. Drilling at the Hang Gong and Bilatos prospects delivered "promising results".

Commenting on this news, CEO Gareth Manderson said:

The RC and diamond drilling results are encouraging and demonstrate that the additional investment in the drilling program at Finniss in 2022 is the right approach for the exploration strategy.

Core Lithium share price snapshot

The Core Lithium Ltd (ASX: CXO) share price has soared 101.94% in the last year.

Core Lithium has a market capitalisation of about $1.9 billion based on the current share price.

Motley Fool contributor Monica O'Shea 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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

A little boy holds up a barbell with big silver weights at each end.
Resources Shares

Silver surges to US$88 per ounce. Here's what is driving the rally

| Aaron Teboneras

Silver hits US$88 per ounce as demand and supply pressures support prices.

Read more »

An engineer takes a break on a staircase and looks out over a huge open pit coal mine as the sun rises in the background.
Resources Shares

Australia's next great ASX mining boom: Are we already in it?

| Bronwyn Allen

Experts say our last mining boom looked very different to the new 'commodity supercycle' building now.

Read more »

Miner looking at a tablet.
Resources Shares

Own BHP stock? Here's why the miner is down 13% in a week

| Sebastian Bowen

BHP has had a wild week...

Read more »

Engineer looking at mining trucks at a mine site.
Resources Shares

Up more than 100% in a year, this ASX uranium stock has further to go, brokers say

| Cameron England

A key approval is good news for this mine developer.

Read more »

Two young male miners wearing red hardhats stand inside a mine and shake hands.
Mergers & Acquisitions

Fortescue shares lifting off today amid big copper news

| Bernd Struben

With copper prices up 35% in a year, Fortescue is making some strategic moves.

Read more »

Two workers working with a large copper coil in a factory.
Resources Shares

Up 116% in 11 months, is this ASX 200 copper stock a good buy today?

| Bernd Struben

A leading investment analyst offers his outlook for this surging ASX 200 copper miner.

Read more »

Layers of copper pipes.
Resources Shares

Why this ASX copper stock is sinking 7% today

| Aaron Teboneras

Sandfire shares slide as copper prices pull back after a strong rally over the past year.

Read more »

Engineer looking at mining trucks at a mine site.
Resources Shares

Which uranium company has just received approval to build one of the world's biggest mines?

| Cameron England

Construction will start imminently.

Read more »