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European Lithium announces 'robust' DFS results for its Wolfsberg project in Austria with NPV of $1.5B

Vladimir Basov

Kitco News

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(Kitco News) - On Wednesday, lithium developer European Lithium (ASX: EUR) (OTC: EULIF) announced the results of its definitive feasibility study (DFS) for the company's wholly owned Wolfsberg lithium project, located in Austria.

The company said DFS demonstrates that the Wolfsberg lithium project is set to deliver high returns, "leveraging low operating costs, and benefiting from a lithium market which is anticipated to be in structural undersupply during most of the life of mine."

Highlights of the project's DFS include a post-tax NPV (6% WACC) of US$ 1.5 billion and an IRR of 33.3%, as well as a battery grade lithium hydroxide monohydrate (LHM) production of ~ 8,800 tpa for 14.6 years. Estimated CAPEX is US$ 866 million.

Importantly, the company noted that LHM prices modelled in the DFS are projected to be at a 39% discount to current spot prices in 2025 and then escalate by 2% per annum.

The project will comprise two integrated operations, a mining and processing operation to produce a lithium concentrate (spodumene), and a hydrometallurgical plant to convert the spodumene into battery grade LHM.

Commenting on the DFS results, Chairman Tony Sage said, "The robust DFS provided by DRA provides confidence in the commercialization of the Wolfsberg project. This positive news has come during a buoyant market for lithium and an increased urgency for decisive action to accelerate the green energy transition, especially in Europe.

"Our next steps include finalization of the listing of Critical Metals on NASDAQ and continuing our discussions with our financiers. Through the business combination with Sizzle, Critical Metals Corp. expect to access substantial opportunities available in the U.S. market."

European Lithium is aiming to be Europe's first and largest local supplier of critical lithium hydroxide monohydrate in the region. The company said it intends to become a reliable low carbon producer of lithium hydroxide monohydrate and be a key part of the emerging lithium supply chain in Europe.

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By Vladimir Basov

For Kitco News

Contact vbasov@kitco.com
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