Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11) said the definitive feasibility study (DFS) for its Ewoyaa project in Ghana had confirmed it as one of the world’s most attractive hard rock lithium developments.
The DFS attributed an after-tax net present value of US$1.5bn at Ewoyaa based on life-of-mine revenues of US$6.6bn, equal to a rate of return of 105% with payback in under two years.
Atlantic said the capex required to build Ewoyaa had gone up to US$185mln, but this is still "modest" and reflects the inclusion of modular separation units and increased throughput of 2.7Mtpa.
Cash costs were projected at US$377/t of concentrate free-on-board after by-product credits from conventional open-cut mining operations with an all-in-sustaining cost of US$610/t.
Atlantic said current expectations are for a 12-year life of mine producing 3.6Mt of concentrate with DFS numbers calculated on spodumene (lithium) prices of US$1,695t and US$1,478t compared to current spot prices of around US$4,000t.
Keith Muller, chief executive, said: "The definitive feasibility study has reaffirmed the Ewoyaa Lithium project's impressive economic outcomes and profitability potential.
“Due to its grade, the project's coastal location and against the backdrop of the global decarbonisation movement, demand from off-takers for product from Ewoyaa has been strong.
"The project benefits from a low water and energy-intensive plant, close proximity to exceptional infrastructure, including adjacent grid power, as well as a skilled Ghanaian workforce within Ewoyaa's supportive surrounding communities “