GCINeil Herbert of Atlantic Lithium: This is the most exciting project I’ve worked on in 25 years within the mining industry
If you find this podcast useful please give it a rating and review on iTunes by clicking here
Neil Herbert Executive Chairman of explains why he’s excited about their lithium project, the current pre-feasibility study of which shows life of mine revenues exceeding $4.84bn, a post-tax NPV8 of $1.33bn, with an internal rate of return of 224% over 12.5 years.
Highlights
Ø Recently announced Pre-Feasibility Study (refer RNS of 22 September 2022) delivers exceptional financial outcomes for a 2Mtpa operation, producing an average c. 255,000tpa of 6% Li2O spodumene concentrate ("SC6") over a 12.5-year operation:
o LOM revenues exceeding US$4.84bn, Post-tax NPV8 of US$1.33bn, IRR of 224% over 12.5 years
o US$125m capital cost with industry-leading payback period of <5 months
o C1 cash operating costs of US$278 per tonne of 6% lithium spodumene concentrate Free on Board ("FOB") Ghana Port, after by-product credits
o Average Life of Mine ("LOM") EBITDA of US$248m per annum
o 18.9Mt at 1.24% Li2O Maiden Ore Reserve
o Average annualised US$1,359/dry metric tonne SC6 pricing used
Ø Significant potential for resource upgrades and exploration upside; project metrics substantially improve with increased LOM beyond 12.5 years.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.