Key Points
Development
• Phase 1 Project transitioned to the development phase in May, a major milestone
• Lycopodium started Stage 1 EPCM works for the vertically integrated Phase 1 Project flotation plant in Namibia as well as the chemical conversion facility in the UAE; FEED works are on schedule for completion in the December quarter
• Mechanical and electrical specifications have been finalised; bid lists for all equipment packages have already been completed; and long lead equipment packages issued for tender
• Geotechnical investigations for the Karibib flotation plant have been completed; site works are scheduled to start March 2022 quarter
• Karibib and KIZAD sites are shovel ready; all major environmental permits and approvals are in place
• Greenhouse gas assessment report completed by leading industry consultant GHD;
“…emissions intensity associated with the Phase 1 Chemical Plant is low compared with other lithium hydroxide production facilities”; opportunities for substantial reductions identified
• “Substantial Scope 3 CO2 emissions savings identified from amorphous silica and SOP, with further unquantified savings from caesium and rubidium”
• Lepidolite and lithium muscovite intersected in the drilling of two first order near mine site exploration targets with assays pending; further priority targets being drilled in the current quarter
Products & Marketing
• Unsolicited inbound interest for lithium hydroxide supply received from a tier one consumer; confidential discussions advancing well for offtake of lithium hydroxide by multiple manufacturers within the electric vehicle supply chain
• Proposals received for upgrading the L-Max®/LOH-Max® pilot plant and operation of a further campaign to generate customer samples; commitment conditional on satisfactory offtake terms being agreed
• Confidential discussions advancing with multiple consumers for long-term offtake of caesiumrubidium chemicals from the Phase 1 Project; significant caesium market deficit to emerge later in 2021 with the Phase 1 chemical plant representing the only material source of new supply
Corporate and Finance
• Well-funded with cash and equivalents as at 30 June 2021 of $14.7 million and no debt
• U.S. International DFC appointed BDA as its independent engineer
• Financial stress testing for project lenders reveals robust economics
• Provisional patent application for the lithium carbonate recovery process filed
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