Aldo Boitano of CleanTech Lithium: Two scoping studies means we have a total NPV of nearly $3 billion
Episode 1632, Sep 26, 2023, 06:19 AM
Aldo Boitano, Chief Executive Officer, of CleanTech Lithium #CTL discusses the results of the Francisco Basin Project Scoping Study, their second major project which now means together with results from Laguna Verde they currently have a total NPV of nearly $3 billion and an IRR of more than 43% for each project.
Highlights:
· Supports the potential for Francisco Basin to become a major supplier of battery grade lithium to European and US markets based on sustainable direct lithium extraction ("DLE") technology
Scoping Study Highlights:
· Based on annual production of 20,000 tonnes of battery grade lithium carbonate for a production period of 12 years based largely on Indicated resources
· Calculates accumulated net cashflows (post-tax and royalties) of US$2.5 billion to be generated over the production period with low operating cost of US$3,641 per tonne of lithium carbonate
· Estimated capital expenditure of US$450.0m, based on DLE plant using Sunresin Materials existing DLE technology, including 20% contingency
· Attractive economics with post-tax NPV of US$1.1 billion using a discount rate of 8%, post-tax IRR of 43.5% and a payback period of 2 years and 7 months - based on a long-term lithium carbonate price of US$22,500 per tonne from 2028 (Note: see below for sensitivity analysis including the NPV at a 10% discount rate)
· The study assumes production commences in 2027 as the Company aims to progress project development stages with a one-year lag to the more advanced Laguna Verde project, where production is targeted for 2026
· Industry leading ESG credentials, a critical advantage for the EU market, based on utilising DLE which returns spent brine to the basin aquifers, and renewable energy for processing power by connecting with the Chilean grid and its abundant renewable energy supply
· The Company plans to undertake another resource drill programme at Francisco Basin, commencing Q4 2023, aiming to further upgrade the current resource estimate, which is 0.92 million tonnes of lithium carbonate equivalent (LCE) at a grade of 207mg/L Lithium
· This could extend the 12-year production period and would enhance projected economic returns
· A Pre-Feasibility Study ("PFS") on the project is planned to commence on the completion of the resource drill programme, which is expected to be in 2H 2024
To read the full RNS click here
Highlights:
· Supports the potential for Francisco Basin to become a major supplier of battery grade lithium to European and US markets based on sustainable direct lithium extraction ("DLE") technology
Scoping Study Highlights:
· Based on annual production of 20,000 tonnes of battery grade lithium carbonate for a production period of 12 years based largely on Indicated resources
· Calculates accumulated net cashflows (post-tax and royalties) of US$2.5 billion to be generated over the production period with low operating cost of US$3,641 per tonne of lithium carbonate
· Estimated capital expenditure of US$450.0m, based on DLE plant using Sunresin Materials existing DLE technology, including 20% contingency
· Attractive economics with post-tax NPV of US$1.1 billion using a discount rate of 8%, post-tax IRR of 43.5% and a payback period of 2 years and 7 months - based on a long-term lithium carbonate price of US$22,500 per tonne from 2028 (Note: see below for sensitivity analysis including the NPV at a 10% discount rate)
· The study assumes production commences in 2027 as the Company aims to progress project development stages with a one-year lag to the more advanced Laguna Verde project, where production is targeted for 2026
· Industry leading ESG credentials, a critical advantage for the EU market, based on utilising DLE which returns spent brine to the basin aquifers, and renewable energy for processing power by connecting with the Chilean grid and its abundant renewable energy supply
· The Company plans to undertake another resource drill programme at Francisco Basin, commencing Q4 2023, aiming to further upgrade the current resource estimate, which is 0.92 million tonnes of lithium carbonate equivalent (LCE) at a grade of 207mg/L Lithium
· This could extend the 12-year production period and would enhance projected economic returns
· A Pre-Feasibility Study ("PFS") on the project is planned to commence on the completion of the resource drill programme, which is expected to be in 2H 2024
To read the full RNS click here