Key Points
Development
• Definitive Feasibility Study (DFS) reveals attractive Phase 1 Project (P1P) economics, within 12 months of acquiring the Karibib assets, which include a 31% Internal Rate of Return and NPV8% of US$221 million (A$340 million) ungeared, based on a 14 year production life
• Average P1P output of 4,900 tonnes per annum (tpa) lithium hydroxide monohydrate (87.5% of design capacity) at a competitive C1 cost of US$1,656/t lithium carbonate equivalent (LCE) and an All in Sustaining Cost (AISC) of US$3,221/t after by-product credits
• P1P demonstrates low carbon intensity similar to that associated with lithium brine operations along with the modest water intensity of spodumene sourced chemicals and relatively small land use footprint, as well as other favourable sustainability credentials
• Strategic caesium and rubidium high value by-products plus sulphate of potash (SOP) and amorphous silica bulk by-products collectively represent 38% of total revenue, and give aggregate production on a total lithium equivalent basis of over 7,000tpa LCE
• Pre-production capital for P1P of US$139 million with payback after +3 years of operation; includes contingency of +13% and production capability for all products from commissioning
• Competitive capital intensity of US$17,400/t LCE on by-product basis, equivalent to US$27,900/t LCE before credits from other products
• Project is supported by the world’s only known JORC Code (2012) (or NI43-101) compliant Ore Reserve estimate for the strategic alkali metals lithium, caesium and rubidium
• Environmental and Social Impact Assessment (ESIA) completed for the Namibian P1P operations, which identifies it as a Category B Project with significant socio-economic benefits, along with advantages from the environmental reclamation of the existing mine sites.
Products & Marketing
• Positive engagement with BASF continues; additional Lithium Hydroxide samples requested by prospective customers are now in preparation using Lepidico’s Pilot Plant
• Confidentiality agreements signed with 3 caesium-rubidium chemicals manufacturers
Corporate and Finance
• Cash and cash equivalents as at 30 June 2020 of $4.8 million; includes proceeds from oversubscribed Entitlement Offer which closed in May raising gross proceeds of $3.86 million
• Multiple sources of debt funding interest for developments in both Namibia and Abu Dhabi, enabled by the integrated P1Ps excellent sustainability credentials
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