What's the outlook for Core Lithium shares in 2024?

Will this lithium miner perform better next year?

| More on:
A concerned man looking at his laptop.

Image source: Getty Images

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

It's fair to say that 2023 has not been kind to Core Lithium Ltd (ASX: CXO) shares.

Despite graduating from being a lithium developer to a lithium miner and reporting a maiden profit, its shares have been among the worst performers on the market.

As things stand, Core Lithium shares are on course to record a yearly decline of 75%.

What's the outlook for Core Lithium shares in 2024?

Clearly, after such a horror 12 months, it wouldn't be hard for an improved performance in 2024. But is that likely?

Well, there are a number of factors that could have a major say in how Core Lithium shares perform next year.

Firstly, the company's fall from grace this year means it is quite likely to be kicked out of the ASX 200 index at a future rebalance. This could put additional pressure on its shares because index funds and fund managers with strict investment mandates would likely be forced to hit the sell button.

On the plus side, it would be harder for short sellers to target the company if it fell out of the benchmark index.

Secondly, and arguably most important, are lithium prices. They have fallen heavily this year amid weak demand. But with analysts predicting a lithium surplus for the next 2-3 years, prices could remain at low levels for longer.

This would be bad news for Core Lithium, which is struggling with current prices. So much so, it has suspended the BP33 underground development and warned that it could curtail production to conserve cash.

This isn't going to do its balance sheet any good and could mean it needs to raise additional funds. In addition, there are concerns that the suspension of the underground development could lead to a production gap further down the line.

Though, conversely, with so much bad news being priced in, if lithium prices do rebound next year, Core Lithium shares certainly could take off.

Hopefully, for shareholders, the latter is what happens. But only time will tell.

Should you invest $1,000 in Mesoblast Limited right now?

Before you buy Mesoblast Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Mesoblast Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro 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.

More on Materials Shares

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Why are Fortescue shares charging higher today?

What is getting investors excited today? Let's find out.

Read more »

Business people discussing project on digital tablet.
Materials Shares

What does Macquarie think Liontown Resources shares are worth?

Let's see if analysts think that this lithium miner is in the buy zone or best avoided.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Materials Shares

Lynas shares charge higher on big news

What is getting investors excited today? Let's find out.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Liontown Resources shares roar higher on big news

This lithium miner is catching the eye with some big news. Here's what is happening.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

What does Macquarie think BHP shares are worth?

Is now a good time to buy the miner's shares? Let's find out.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Materials Shares

What does Macquarie think Pilbara Minerals shares are worth?

Is this lithium miner dirt cheap? Let's find out.

Read more »

Two miners standing together.
Materials Shares

Is it time to buy this beaten down lithium share?

This diversified miner’s share price has been hit on multiple fronts. What does it mean for investors?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here’s why.

Read more »