Trident Royalties PLC (AIM:TRR) has noted recent updates from Ganfeng Lithium Co Ltd regarding the Sonora Lithium project in Mexico.
Ganfeng noted that the project is under construction and that it intends to accelerate construction to "make it a leading project in the field of extraction of lithium from lithium clays."
Ganfeng highlighted a larger planned production profile relative to the feasibility study published by Bacanora Lithium, with potential Stage 2 production increasing by 43% to 50,000 tonnes per annum of lithium hydroxide.
At the current lithium hydroxide spot price of circa US$80,000 per tonne, upon the project coming into operation, royalty revenue attributable to Trident at Stage 1 production would be approximately US$24mln per year, increasing to approximately US$60mln in Stage 2.
"We are very pleased to note Ganfeng's progress at the Sonora project,” said Adam Davidson, chief executive of Trident Royalties PLC (AIM:TRR) in a statement.
“Like Thacker Pass - over which Trident holds a gross revenue royalty - Sonora is a globally significant lithium asset which is anticipated to be the next North American lithium mine to enter production. With the potential to have both the Sonora and Thacker Pass royalties in the Trident portfolio, shareholders in Trident will have unique lithium exposure from global Tier 1 assets," he added.
Trident acquired the 3% royalty over Sonora in January of this year.