Shares in Zinnwald Lithium PLC (LSE:ZNWD, OTC:ZNWLF) rose 12.5% in early trading on Monday after the company published a pre-feasibility study confirming the robust economics of its German lithium project.
The study values the integrated mining and processing operation at €2.2 billion post-tax, with the potential to generate €12.1 billion in free cash flow over a 41-year mine life. Initial production is expected to reach 18,000 tonnes of lithium hydroxide per year, doubling to 35,100 tonnes in a second phase.
Chief executive Anton du Plessis said the project is “designed to support Europe’s growing demand for battery-grade lithium hydroxide” and would be one of the largest integrated operations of its kind in Europe.
The plan includes a 9.1km underground tunnel to reduce surface disruption, a zero-liquid discharge policy, and tailings reuse for construction - measures aimed at minimising environmental impact while supporting long-term supply chain needs in the region.
In early trading, the stock was up 0.6p at 5.4p.