EXPLORATION & DEVELOPMENT

Atlantic moves closer to producing Ghana's first lithium

Atlantic Lithium has released the results of a pre-feasibility study on its Ewoyaa lithium project in Ghana, which views a 12.5 year mine life of mine with a production of 3.18 million tonnes of 6% spodumene and a capital cost estimate of US$125 million.

The IRR is 224% and the LOM EBITDA is US$248 million per annum.

The IRR is 224% and the LOM EBITDA is US$248 million per annum.

The capex has been lifted from US$70 million, primarily due to bringing the crushing circuit in-house as opposed to contract crushing, the company said.

"The study outlines a robust 2 million tpa operation which can deliver excellent cash flows, an exceptional 20-week payback and a post-tax NPV8 of US$1.33 billion producing a coarse, premium DMS SC6 product including credits from DSO fines and feldspar by-products," interim CEO Lennard Kolff said.

The IRR is 224% and the LOM EBITDA is US$248 million per annum.

C1 cash operating costs are viewed as US$278 per t of SC6 FOB Ghana port, after by-product credits.

The study used a long-term average SC6 price of US$1,359/t FOB Ghana.

"Every US$100/t increase in SC6 price forecast results in an additional 9% increase to the post-tax NPV8% highlighting the significant potential value uplift to the project," Kolff said.

"We are also pleased to declare a maiden ore reserve of 18.9 million t at 1.24% Li2O, presenting sound resource to reserve conversion and confirming the robust project fundamentals," he said.

He added that the study moves the project another step closer to becoming Ghana's first lithium-producing mine.

Atlantic's share price rose 10% day on day to 46.80p (US%0.52) on 22 September.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.