Bacanora Lithium PLC (LON:BCN), the London listed lithium exploration and development company, has drawn shareholders’ attention to surging lithium prices.
In a fiscal third-quarter update that largely recapped previously released information, Bacanora noted that the pricing of lithium carbonate in China has remained strong with reported sales by major producers in the region of US$13,000/tonne (t) to US$16,000/t and, in most cases, is up by 20% from 2017 prices.
READ: Bacanora Minerals finalising debt and equity financing as it says Sonora project timetable on track
Spot sales price for battery grade lithium carbonate reached up to US$24,450, Bacanora added.
Bacanora said it continues to progress with the development of its Sonora project based on a planned commissioning of the project in the first quarter of 2020.
The front end engineering design of both the roaster/kiln and the crystalliser/evaporation/IX, which account for around three-quarters of the total capital cost of the processing plant, has commenced following the delivery of bulk lithium samples from Sonora to selected vendors.
The current FEED schedule is to have designs, cost estimates and process guarantee scopes completed by the end of June this year with orders for long lead items being placed at the end of the FEED process in the third quarter.
The current timetable for the plant construction is subject to completing the US$420mln project financing strategy and final board approvals.
Detailed quotes for the supply of liquefied natural gas (LNG) are currently being evaluated and the current thinking is that LNG gas supplies will be initially used at Sonora during the early stages of commissioning while gas consumption is low
Meanwhile, the feasibility study for the Zinnwald Lithium Project in Germany continues on schedule and should be completed in the first half of next year.
lots of results in the market today which I have commented -on in my daily e mail Q3 figs from Bacanora - all looks fine and its a Buy #Lithium
— Andrew Monk (@AmonkMonkey) May 24, 2018