Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) chief financial officer Braam Jonker joined Proactive to discuss the latest developments at the companyâs Angel Island lithium project in Nevada.
The company has completed an optimization study, highlighting how the company expects to reduce capital expenditure (CapEx) by up to 25% during Phase 1 of the project.
Proactive: Welcome back inside our Proactive newsroom. Joining me now is Braam Jonker, chief financial officer for Century Lithium. Braam, great to see you. How are you?
Braam Jonker: Doing very well. Thanks a lot, and thanks for having me this morning.
I'm excited to talk about some news from the company. You released reports on your Angel Island project. Back in April, you looked at the numbers and cost efficiencies. Today's news release indicates a potential 25% CapEx reduction in that project. Can you remind us about Angel Island?
Angel Island is an advanced lithium project in Nevada, US. We've completed our feasibility study and, as announced today, an optimization study. This is a normal process as we advance the project. We're not too far from other advanced projects in Nevada, and we believe this project will become operational one day.
Up to 25% potential savings in Phase 1. Where do you see the biggest opportunities for cost savings?
The bulk of the savings will be in the processing plant. We've reviewed the entire project from A to Z. The pilot plant was running until recently and is now a demonstration plant. Most of the savings will come from the processing facilities.
Generating revenue while offsetting costs is interesting. Can you elaborate?
Yes, we have a byproduct that keeps our operating costs very low compared to competitors, even if the upfront capital costs are higher. The byproduct will form about a third of our future revenue stream, which is a fantastic position for us.
What are the next steps for the project?
We'll finalize the optimization study, validate it with an external consulting engineering firm, and integrate it into an updated feasibility study. This process might uncover even more savings. Our focus is on Phase 1 and Phase 2, aiming to become a sizable and competitive lithium producer.
Quotes have been lightly edited for clarity and style