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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.
Atlantic moves closer to producing Ghana's first lithium Atlantic moves closer to producing Ghana's first lithium Atlantic moves closer to producing Ghana's first lithium Atlantic moves closer to producing Ghana's first lithium Atlantic moves closer to producing Ghana's first lithium

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.