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Neil Herbert Executive Chairman of Atlantic Lithium 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.