Atlantic Lithium announces 'robust' PFS results for Ewoyaa lithium project with IRR of 224%
(Kitco News) - Africa-focused lithium exploration and development company Atlantic Lithium (AIM: ALL) (OTC: ALLIF) today announced positive results of the pre-feasibility study (PFS) on the Ewoyaa lithium project, located in Ghana.
The company said that the PFS results demonstrating significant profitability potential of this stand-out project, adding that the study was managed directly by the company, engaging experienced internationally recognized consultants, and incorporates the increased JORC resource of 30.1Mt at 1.26% Li2O.
According to a press-release, the project's post-tax NPV8 is US$1.33bn with free cash flow of US$2bn from life of mine (LOM) revenues of US$4.84bn, while internal rate of return is 224% with payback less than five months, and average LOM EBITDA of $248 million per annum.
The project's PFS assumes a 12.5-year mine life, 2Mtpa conventional dense media separation processing facility with average 255,000tpa 6% lithium spodumene concentrate ("SC6") production. The company also declared a maiden ore reserve of 18.9Mt at 1.24% Li2O.
The project's capital cost estimate is US$125 million, including integrated 3-stage crushing facility ahead of the DMS processing facility; a major design change to the scoping study concept of contract crushing, reducing plant OPEX, improving operational control and reducing lithium losses, the company added.
Atlantic Lithium noted that key PFS assumptions include long-term average SC6 price of US$1,359/t FOB over 12.5 years, project funding via Piedmont agreement and cost estimation at +/- 20% level of accuracy.
Commenting on the company's latest progress, Interim CEO Lennard Kolff stated, "We are delighted to release our pre-feasibility study for the Ewoyaa lithium project in Ghana, which further illustrates Ewoyaa as an industry-leading lithium asset.
"Against the backdrop of buoyant global lithium demand, driven particularly by electric vehicle demand, we believe Ewoyaa will play a significant role in the role of sustainable lithium production. This PFS moves the project another step closer to becoming Ghana's first lithium-producing mine."
Atlantic Lithium is a lithium exploration and development company advancing a portfolio of lithium projects and licenses in Ghana and Côte d'Ivoire. The company's flagship project, the Ewoyaa project in Ghana, is a significant lithium spodumene pegmatite discovery targeted to become Ghana's first lithium producing mine.
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