CleanTech Lithium PLC (AIM:CTL, OTCQX:CTLHF) said a scoping study for its Francisco Basin project suggests a 12-year project producing 20,000 tonnes a year of battery-grade lithium carbonate is commercially possible.
Based on that output and using a lithium price average of US$22,500 per tonne, net cashflows would be US$2.5 billion post-tax over its life with costs projected at US$3,641 per tonne of lithium carbonate.
After build and upfront costs of US$450 million, that translates into a net present value (NPV) of US$1.1 billion and a payback period (IRR) of two years and seven months, added the statement.
Production would start in 2027 with a one-year lag to the more advanced Laguna Verde project, where commissioning is targeted for 2026.
More drilling is planned at Francisco Basin later this year to upgrade the current resource estimate of 0.92 million tonnes of lithium carbonate equivalent (LCE), while a more detailed pre-feasibility study is scheduled for the second half of 2024.
Aldo Boitano, chief executive, commented: "The scoping study 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.
"Francisco Basin is our second project which is being developed on a schedule one year behind our more advanced Laguna Verde project.
“Combining the two scoping studies means we have a total NPV of nearly $3 billion and an IRR of more than 43% for each project,” he said.