Unless I've missed it, there is surprising no comment about the...

Unless I've missed it, there is surprising no comment about the impairment in the half year report. While Core has a relatively small lithium resource, concurrently expanding production and going downstream to Hydroxide isn't possible. If Hydroxide is the preferred pathway, there is no expansion because you would need circa 20+ year JORC resource to support the Hydroxide FID. Ideally most of that JORC would be at measured and indicated.

Alternatively Core could look to reschedule and increase output with any JORC upgrade, but this has the consequential impact of keeping the mine life well below 20+ years and effectively ruling out hydroxide (unless a large additional resource is found - Shoobridge /or Anningie & Barrow Creek?). The half year report provides a massive hint as to Core's current thinking - at least from the accountants / auditor's viewpoint.

Three sections from the HY report are copied below. The Impairment is explained in note 8. Within note 8, the groups focus is noted to be on Concentrate rather than more advanced processing options. The capitalised expenditure is therefore written off. This "more advanced processing options" is of course a reference to Lithium Hydroxide refinement, rather than just shipping Spod. The accountants have determined that the $1m spent and capitalised to date had a sufficiently low likelihood of progressing that it could not be maintained as an asset.

From the quarterlies, Core received $2.368m in Sep 2021. At this stage the full $2.368m of the grant is being held as a liability. When the cash is paid for the grant, the accountants determine whether the conditions associated to the receipt have been met. If they have, the grant proceeds are recognised as revenue. If they haven't, the proceeds are recognised as a revenue in advance liability. With the full amount received being held as a liability, it would appear none of the conditions associated with the grant have been met yet meaning none of it can yet be booked as revenue. This would also explain the absence of any scoping study on Hydroxide because you need to make progress on the study to complete this piece of work.

From the Half year accounts to 31 Dec 2022.
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