CleanTech Lithium PLC (AIM:CTL) has told investors that its new scoping study into the proposed Laguna Verde mine, in Chile, has added confidence into what is expected to be robust economics for the project.
The company, in a statement, said that the study has confirmed the project's strong economics and environmental, social, and governance (ESG) credentials.
It positions the project as a potential major supplier of battery-grade lithium into European and US markets, the company highlighted.
"This scoping study marks a major milestone for the company,” said CleanTech Lithium chief executive Aldo Boitano, in the statement. “[It] outlines a plan to produce battery-grade lithium with a low environmental footprint, which positions the company extremely well to supply the EU and US markets.”
The scoping study envisages annual production of 20,000 tonnes of battery-grade lithium carbonate over a 30-year operational life, with estimated operating costs of US$3,875 per tonne of lithium.
In the report, production is predicted to begin in 2026 though the company noted that it continues to target start-up by late 2025.
The study identifies a possible US$6.3bn of accumulated net cashflows, post-tax and royalties, over the project's predicted lifespan.
The study includes an estimate of US$383.6mln of capital expenditure to develop the mine, using SunResin Materials' sustainable direct lithium extraction (DLE) technology.
It estimates a post-tax net present value of US$1.83bn, which the company describes as attractive, and an internal rate of return (IRR) of 45.1%, with the capital pay-back period estimated to be 1 year and 8 months.
The study assumed a long-term lithium carbonate price of $22,500 per tonne from 2027 onwards
CleanTech Lithium plans to move on now to produce a further pre-feasibility study for the project, commencing immediately and targeting completion by the second half of this year.
The company also, as part of today’s statement, highlighted that Laguna Verde will present “industry-leading ESG credentials” and said it intended use of DLE which will return spent brine into basin aquifers.
It added that it plans to use renewable energy sourced from the Chilean grid which has an abundant supply from renewables. Meanwhile, it described lithium carbonate as ‘potentially more attractive’ compared to lithium hydroxide.
Elsewhere, the company said its consultant is currently working on another scoping study for the separate Francisco Basin project and CleanTech Lithium said it is “hopeful that the economics and ESG credentials prove to be as attractive as we've seen for Laguna Verde”.
The Francisco Basin scoping study is anticipated to be completed later in the first half of 2023.