Lithium Power International Limited (ASX: LPI) (“LPI” or the “Company”) through its Joint Venture (“JV”) Company, Minera Salar Blanco S.A. (“MSB”), is pleased to provide details of the updated Definitive Feasibility Study (DFS) for its Maricunga Stage One lithium brine project in northern Chile. The study confirms that Maricunga Stage One could be one of the world’s lowest-cost producers of lithium carbonate, with a solid ESG strategy to support a sustainable future.

  • Maricunga Stage One DFS delivers US$1.4B NPV (after tax) at an 8% discountrate
  • An IRR of 39.6% and a 2-year paybackperiod
  • OPEX of US$3,718 per tonne of LCEproduced
  • Annual EBITDA ofUS$324M
  • Direct development cost US$419M, Indirect cost US$145M and Contingency US$62M for a total project CAPEX ofUS$626M
  • 15,200 tonnes of LCE per annum over 20years
  • The updated Maricunga Stage One Lithium Brine project’s Definitive Feasibility Study(DFS) supports 15,200 tonnes per annum production of lithium carbonate (LCE) for 20 years.
  • ProjectNPV1 (leveragedbasis)ofUS$1.425B(aftertax)at8%discountrate,providinganIRR of 39.6% and a 2-year payback. Estimated steady-state annual EBITDA ofUS$324M.
  • Project operating cost places Maricunga among the most efficient producers with an OPEX of US$3,718 per tonne not including credit from potassium chloride (KCl) by-product. KCI production was not considered in theDFS.
  • Project direct development cost estimated at US$419M, indirect costs at US$145M and contingency costs at US$62M to provide a total project CAPEX ofUS$626M.
  • Exceptional ESG profile aims to achieve carbon neutrality once operation beds down, setting new standards for social relationships. Certification process led by Deloitte will continue during upcoming years as the project advances.
  • Project infrastructure including water rights have been secured by long term contracts during project construction and operation. Access to the National Power Grid has been granted, ensuring future power supply including an important component of renewable energy.
  • Revised DFS completed by Tier-1 engineering consultancy Worley to international standards, with cost inputs from EPC contractors to provide greater certainty on cost estimates. The Resource and Reserve estimates were prepared by Atacama Water.
  • Preliminary indications of interest received from international and Chilean financial institutions and private funds for debt financing and future equity financing of the project. Finance process will continue in coming months.
  • Updating of the EPC proposals will commence during Q1. Final Investment Decision expected for 2022, with construction to start immediately after

Stage One Project

The Company intends to host a webinar on the 21st of January at 10:30am AEDT. Zoom Webinar, details to be provided upon registration. To register your interest for the webinar please click through to the link below:

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This article includes content from Lithium Power International, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.


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