The Core Lithium Ltd (ASX: CXO) share price rose by 4.1% in early trading after the lithium miner released its Q3 FY23 activities and cash flow report this morning.
The Core Lithium share price hit a high of $1.015. It's now settled at 99.5 cents a share, up 2.05%, at the time of writing.
Meantime the S&P/ASX All Ordinaries Index (ASX: XAO) is down 0.34%.
Let's take a look at today's news regarding this ASX lithium share.
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Core Lithium share price gains on positive quarter
Pit and processing operations are in full swing today at Core Lithium's flagship Finniss Lithium Operation on the Cox Peninsula in the Northern Territory.
Wet weather hampered some operations at Finniss during the quarter, including inundation at the Grants Open Pit.
The company drained the pit ahead of schedule and full mining activities have resumed. However, a portion of the previously estimated production had to be deferred to H1 FY24.
During the quarter, Core Lithium completed the construction of its Dense Media Separation (DMS) plant. It produced its first concentrate in February.
The lithium miner expects to provide formal production guidance to investors in 1Q FY24.
Core Lithium achieved its first revenue and first DSO shipment during the quarter, with a $20.1 million sale of 15,000 tonnes of spodumene concentrate to a Chinese client, Sichuan Yahua.
Last month, Core Lithium announced additional sales agreements with Yahua to supply 18,500 tonnes of spodumene concentrate.
The first parcel of 3,500 tonnes has already been delivered to the Port of Darwin.
Core Lithium has commenced production of the second parcel and expects to deliver it by the end of July.
The company finished the quarter with cash and cash equivalents of $97.8 million as of 31 March. This does not include the additional sales receipts from Yahua.
2023 drilling program twice the size of 2022
The 2022 drilling campaign was the largest in the company's history. Core Lithium says the results "show significant potential for mine life extension at Finniss".
To that end, the company is now working to produce an updated Ore Reserve Estimate.
On 18 April, the company announced a 62% increase to the total Finniss Mineral Resource inventory.
Core Lithium has now commenced a $25 million drilling program for 2023 — nearly double what it spent in 2022. The miner is targeting life of mine extensions and testing expansion potential.
What did management say?
CEO Gareth Manderson said:
Core is rapidly moving to lithium concentrate producer status.
Commercial agreements for first concentrate production with long term customer Sichuan Yahua assist our cash flow management.
The Core team is now focused on ramp up and establishing integrated mining and processing operations.
Core Lithium share price snapshot
The Core Lithium share price is up 27% over the past month while it is down 2% in the year to date.
It reached a 52-week high of $1.88 in November 2022.
