by Megan Stals

How to buy Core Lithium (CXO) shares

With the rise of EVs, the lithium mining industry has gained interest from investors. Core Lithium Ltd was one of the biggest winners from the market interest, with the share price increasing by 78.26% in 2022 and also being the most traded Australian stock on Stake in the same year.

This article focuses on how to buy specific securities, however, it is not a recommendation to invest in them and should not be taken as financial advice. Do your own research and make your own decisions, or even consider getting advice from a licensed financial adviser before investing.

Key highlights:

  • Core Lithium is an exploration and development company focused on the Finniss Lithium Project, located near Darwin in the Northern Territory of Australia.
  • The company's goal is to become a leading producer of lithium for the rapidly growing global battery market.
  • Demand for lithium is expected to grow in the coming years due to the increasing adoption of electric vehicles and renewable energy storage. As Core Lithium is focused on lithium mining, this could potentially have a positive impact on the company's prospects.

How to buy Core Lithium (CXO) shares

Want to start buying CXO shares but not sure how? Learn how to buy Core Lithium stock on the Stake stock trading platform below.

1. Find a stock investing platform

To buy shares listed in Australia, you'll need to sign up with an investing platform that has access to the ASX. There are a number of share trading platforms in Australia, of which Stake is one.

2. Fund your account

Complete an application with your personal and financial details. Fund your account with a bank transfer, debit card or even Apple/Google pay.

3. Search for Core Lithium Ltd

Find the share by name or ticker symbol: CXO. Do your own research to ensure it is the right investment product for your own circumstances.

4. Choose an order type and buy CXO stock

Buy on any trading day with a market order or use a limit order to delay your purchase of CXO shares until it reaches your desired stock price. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.

5. Monitor your investment

Optimise your portfolio by tracking how your stock and the business perform with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your stock.

Gain exposure and access to Core Lithium and other mining companies when you sign up with Stake.

Core Lithium overview

Core Lithium is a lithium exploration and development company based in Australia. The company's main focus is on the Finniss Lithium Project, located near Darwin in the Northern Territory of Australia. The project includes the BP33 lithium deposit, which is considered one of the highest-grade lithium deposits in the world. Core Lithium also holds additional exploration licenses in the area, and is actively exploring for further lithium and other mineral resources. The company's goal is to become a leading producer of lithium for the rapidly growing global battery market.

Core Lithium Ltd was the most traded Australian stock on the Stake platform in 2022 according to the Stockest 100, sitting above other lithium exploration and mining companies like Pilbara Miners Limited (PLS) and Sayona Mining Limited (SYA).

Core Lithium share performance

As lithium prices in China rose from 2020 lows and global Electric Vehicle (EV) sales reached record highs, Core Lithium shares skyrocketed. The lithium sector as a whole, as well as other peer companies, experienced increased interest and corresponding increases in share prices. Core Lithium is the most advanced new Australian lithium developer on the ASX and there are very few advanced Australian lithium projects for investors to build exposure to increasing lithium prices, which sent the company prices upwards.

Core Lithium P/E ratio

Core Lithium has yet to report earnings, as the company has been operating at a loss for the last 10 years, as it's common for mining companies, especially those in the exploration phase like Core Lithium, to not record profits as they invest heavily in exploration and development activities. Because of this, Core Lithium does not have a price/earnings ratio.

Core Lithium EBITDA

In FY22, Core Lithium reported an EBITDA of -$7.59m, having reported negative numbers for the last five years. Until its Finniss lithium project becomes operational, it's unlikely the company will be able to present a positive number of earnings before interest, taxes, depreciation and amortisation.

What's in the future for Core Lithium (CXO)?

It's hard to forecast the future of a company, especially considering the possibility of macroeconomic headwinds. However, in general, the future of a mining company like Core Lithium will depend on a variety of factors including the price of lithium and other minerals, the success of their exploration and development efforts, and their ability to secure financing and partnerships.

As lithium demand is expected to grow in the coming years due to the increasing adoption of electric vehicles and renewable energy storage, the company's prospects may be positively impacted.

Read more: Top electric vehicles stocks to watch

Will Core Lithium pay dividends?

Since Core Lithium doesn't yet have positive earnings and dividends are a part of earnings that are then distributed to shareholders, it isn't likely to pay any dividends in the near future. However, once its Finniss lithium project becomes operational and the firm eventually becomes profitable, the company might start to pay dividends to its investors.

Is Core Lithium a good investment?

Whether or not a company is a good investment depends on a variety of factors including its financial health, industry trends, and management team. Investing in mining companies, such as Core Lithium, is considered a high-risk, high-reward endeavour, as the price of their products (in this case lithium) is largely dependent on global market conditions, which can be volatile.

However, as demand for lithium is expected to grow in the coming years due to the increasing adoption of electric vehicles and renewable energy storage, the company's shares might show significant gains.

Who are Core Lithium's main competitors?

Core Lithium's main competitors in the lithium mining industry would likely include other companies that mine and produce lithium, such as:

  • Albemarle Corporation (ALB)
  • Sociedad Quimica y Minera de Chile S.A. (SQM)
  • Ganfeng Lithium (002460)
  • Tianqi Lithium (002466)
  • Livent Corp (LTHM)
  • Galaxy Resources Limited (GXY)
  • Mineral Resources Limited (MIN)
  • Neometals Limited (NMT)
  • Pilbara Minerals Limited (PLS)
  • Sayona Mining Limited (SYA)

It's worth noting that some of these companies have a diversified portfolio of mining activities, and lithium is just one of their products, while core lithium is a pure play lithium mining company. Also, some of these companies are based in different countries and have different lithium resources and mining methods.

Core Lithium FAQs

What ETFs can I invest in that hold Core Lithium?

There aren't any ETFs that hold a significant amount of Core Lithium shares. Some Australian ETFs may hold shares of mining companies, such as those that produce lithium, but it is unlikely that any ETF would hold shares of a specific small-cap mining company like Core Lithium.

Instead, you can invest in ETFs that track the performance of the broader lithium mining industry or the broader resources or mining sector. Some examples of ETFs that invest in lithium mining companies are Global X Lithium & Battery Tech ETF (LIT) or VanEck Vectors Rare Earth/Strategic Metals ETF (REMX).

Please note that investing in ETFs is still subject to market risk and it is important to conduct thorough research and consider your investment objectives before investing your money.

How many shares does Core Lithium have?

Currently there are 1.85b shares outstanding of $CXO, with 1.6b in free floating shares.

Portrait photo of Megan Stals, Market Analyst at Stake.

Megan Stals

Market Analyst

Megan is a markets analyst at Stake, with 7 years of experience in the world of investing and a Master’s degree in Business and Economics from The University of Sydney Business School. Megan has extensive knowledge of the UK markets, working as an analyst at ARCH Emerging Markets - a UK investment advisory platform focused on private equity. Previously she also worked as an analyst at Australian robo advisor Stockspot, where she researched ASX listed equities and helped construct the company's portfolios.


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