CleanTech Lithium PLC's (AIM:CTL, OTCQX:CTLHF) scoping study for its Francisco Basin has affirmed its economic viability, according to a report by Fox-Davies.
The study indicates the presence of substantial resources, with an estimated 0.92 million metric tons at a concentration of 207 milligrams per litre of lithium.
This find is expected to sustain a production capacity of 20,000 metric tons of lithium carbonate equivalent (LCE) over a period of 12 years, with the potential for further resource upgrades.
A pre-feasibility study (PFS) is slated to begin after the completion of a resource drill programme in late Q4 2024, and production is anticipated to commence by 2027.
The scoping study presupposes a capital expenditure of US$450 million, including a 20% contingency, and an operating cost of approximately US$3,650 per metric ton of LCE.
With a long-term LCE price estimated at US$22.5k/ton, the project is projected to have a payback period of 2.7 years.
The study also highlighted the project's efficient water usage and strategic proximity to the Maricunga Substation, factors contributing significantly to its economic feasibility.
Management is actively exploring various options, including potential discussions with strategic partners and financiers, as indicated in the report.
"Assuming a future 348.8m shares are to be eventually on issue (currently ~110m fully diluted), our current after-tax NPV14% remains £2.19ps," Fox-Davies concluded