Core can spend it on exploration.Core can preserve most of it as...

Core can spend it on exploration.

Core can preserve most of it as a payment towards flotation and the last remaining costs of getting to the ore in BP33's. Core can spend some on advancing other assets to the point they are saleable propositions and then sell them off (or develop them).

Core can also reopen mines (as Mr Brown has already previously done in his career as he was incharge of lithium at MinRes as they restarted Wodgina). As per an earlier post of mine, it would appear Core now has a strip ratio under 5:1 for the remaining ore in Grants but I'll use 5:1 below. If Core were to need to pay A$6/t as a mining cost then they have $30/t ROM ore.

The grade is about 1.4% and they are concentrating to 4.8% with 63% recoveries. About 5.5t of ore is needed for each ton of concentrate.

• Mining costs on restart could be around A$165/t
• DMS processing costs are unclear however he ex CEO of Primero is now running a ASX listed Canadian miner that recently put out a PEA. That PEA involved their proposed 1.5Mtpa DMS only plant having a C$48.87/t processing cost. I'm going to use this as a guess as to what the DMS plant should be able to be operated at if run efficiently. That canadian cost converts to about A$53/t so processing costs may be around A$292/t.
• G&A and end to end transportation costs may be approaching A$100/t
• Until confirmed by Core, a healthy contingency needs to be added of perhaps 15% so the A$557 component part estimate becomes a A$640/t (but this is for SC4.8 product)

Core's concern around restarting will be whether SC6 prices are going to slide well south of US$800-1000/t as KV, Goulamina and some brine resources come online. I suspect GM assertively suggested to the board of Core that they would, but they haven't so far. As Core gains confidence that prices around or above US$1,000/t for SC6 are continuing I'd suggest a restart decision will occur soon after that (pending the issue of that being early wet season).

If Core gets wind of significant commissioning issues at either of Goulamina or KV, a restart decision may also occur fairly quickly after finding this out.