Core Lithium (ASX: CXO) Jumps 7% on Uranium Exit: Buy or Hold After 200% Rally?

Core Lithium Secures A$5M in Uranium Asset Sale

Core Lithium (ASX: CXO) rose 7.4% to 29 cents on Tuesday after selling its uranium projects to Elevate Uranium for A$5 million. The deal gives Core Lithium A$2.5 million in cash, A$2.5 million in Elevate shares, and a 1% royalty on any future uranium production. For investors, this move sends a clear message: management is betting everything on lithium.

CEO Paul Brown said the sale helps “sharpen our strategic focus as a lithium developer.” We think this is smart. Owning random side projects distracts management from what really matters. Now Finniss is the whole story, which makes it easier for investors to judge whether this stock is worth owning.

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What the Uranium Sale Means for Shareholders

The Napperby, Fitton, and Entia uranium projects were never going to move the needle for Core Lithium. They sat in the portfolio collecting dust while management focused on lithium. Selling them now does three things.

• First, it adds A$2.5 million in immediate cash. That’s not huge, but every dollar helps when you’re planning a mine restart.
• Second, the Elevate shares and royalty give Core some upside if uranium prices take off later.
• Third, and most importantly, it removes any doubt about where this company is headed. Core Lithium is now a pure-play lithium stock.

Why Finniss Is the Whole Investment Case

The Finniss Lithium Project sits just 88 kilometres from Darwin Port. That’s a big deal because it means lower shipping costs and faster access to buyers in Asia. Many Australian lithium projects are stuck in remote locations with expensive logistics. Finniss doesn’t have that problem.

The deposit itself is solid. The Grants open pit contains an ore reserve of 1.53 million tonnes at 1.42% lithium oxide (Li₂O), while the BP33 underground deposit contributes a further 8.7 million tonnes to the project’s ore reserve. Together, that’s enough lithium to keep the mine running for 20 years.

Core’s restart study shows the new operating model is much leaner than before. Processing costs are down 42%, and the company expects to produce 205,000 tonnes of spodumene concentrate each year. With current spodumene spot prices hovering around US$1,150 per tonne, margins remain lean but have improved significantly from the 2024 lows. If prices climb towards the US$1,330 the study assumed, this becomes a cash machine.

The Investor’s Takeaway

The balance sheet looks healthy. After raising A$60 million in August, Core holds around A$70 million in cash with zero debt. That’s enough runway to keep advancing towards a restart decision. But here’s the catch: actually restarting Finniss will cost A$175–200 million. Significant additional capital will be required to bridge the funding gap for a final investment decision.

The bigger question is whether today’s share price already reflects the good news. Core Lithium has surged about 200% from its late-2024 low of around 9 cents. At 29 cents and a market cap of around A$770 million, a lot of restart optimism is baked in.

If you already own shares, we think holding makes sense. The company sold its uranium assets to stay focused; its lithium resource is real, and management has a clear plan. But if you’re looking to buy in fresh, waiting for a pullback might be smarter. If funding talks stumble or lithium prices drop, you could get a cheaper entry point.

Our take: Core Lithium offers solid leverage to a lithium recovery, but the easy gains are probably behind us. Hold if you own it. Wait for a dip if you don’t.