Lake Resources boosts Kachi lithium project NPV by 110% to US$1.6Bn
(Kitco News) - Clean lithium developer Lake Resources (ASX:LKE; OTC:LLKKF) announced today that it has refreshed the company’s flagship Kachi lithium brine project pre-feasibility study (PFS) based on revised lithium price estimates, which demonstrates a more robust financial outcome than the original conservative PFS price assumptions.
The company said that as a result, Kachi NPV increased 110% to US$1.6 billion (A$2.1 billion) based on revised lithium price estimates in a refreshed PFS, based on 25,500 tpa lithium carbonate production.
Kachi project value, as post-tax NPV, increases 110% to US$1.58 billion (A$2.1 billion) with a 35% IRR and annual EBITDA of US$260 million (A$350m), using updated lithium price forecast of US$15,500/tonne for battery grade lithium carbonate.
In addition, an expansion of production at the Kachi project is being assessed as part of Lake’s aspirational target to become a large producer of high purity sustainable lithium. There is an option to expand with either lithium hydroxide or lithium carbonate. This is amid projections of a growing supply deficit for high purity battery-grade product, the company noted.
Lake Resources is a clean lithium developer utilising direct extraction technology for production of sustainable, high purity lithium from its flagship Kachi project within the Lithium Triangle in Argentina among other projects covering 200,000 ha.
The direct extraction method delivers a solution for two rising demands of electric vehicle batteries – high purity battery materials to avoid performance issues, and more sustainable, responsibly sourced materials.