Lithium Power International {ASX: LPI} have just issued their latest quarterly review, which makes very pleasant reading for shareholders, and those interested in the lithium sector should take note.
The recent PEA gave the project a value of $1 billion, an IRR of 23%, and one of the lowest production costs of around $2,690 per ton, after credits.
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Lithium Power International {ASX: LPI} have just issued their latest quarterly review, which makes very pleasant reading for shareholders, and those interested in the lithium sector should take note.
The recent PEA gave the project a value of $1 billion, an IRR of 23%, and one of the lowest production costs of around $2,690 per ton, after credits.
- HIGHLIGHTS
Outstanding economic outcomes announced from the Preliminary Economic assessment (PEA) for the Maricunga Lithium Brine project in northern Chile. These included an ungeared IRR of 23.4% and a project NPV of US$1.05 billion before tax, at an 8% discount rate and based on a project life of 20 years. - Forecast project operating costs would place Maricunga among the most efficient global lithium producers, with lithium carbonate production costs of US$2,938 per tonne FOB, reducing to US$2,635/t with credits from a potassium chloride fertiliser (KCl) by-product.
- Process test work for Maricunga continues, with final results of the first LCE production pending, using expert equipment suppliers Veolia and GEA to optimise the lithium extraction process.
- Site visits to Maricunga were conducted with several groups of investment analysts. Canaccord, Sprott Asset Management and other analysts now cover LPI as progress is made towards completing a feasibility study due in Q3 2018.
- A non-binding MOU with Chinese motor vehicle manufacturer Sichuan Fulin Industrial Group Co Ltd (Fulin) has been executed for potential project equity participation and off-take agreement. A technical and legal due diligence process has been conducted by Fulin which was completed in January 2018. Further discussions are to be held in February 2018.
- LPI’s and MSB’s boards have approved advancing the project to a Definitive Feasibility Study.
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To read the full news release, please click HERE
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