Atlantic Lithium Limited NPV (DI) (ALL)

Sector:

Mining

Index:

FTSE AIM All-Share

52.80p
   
  • Change Today:
      0.80p
  • 52 Week High: 66.60p
  • 52 Week Low: 16.40p
  • Currency: UK Pounds
  • Shares Issued: 578.10m
  • Volume: 2,795,059
  • Market Cap: £305.24m

Atlantic Lithium upbeat on latest scoping study at Ewoyaa

By Josh White

Date: Tuesday 07 Dec 2021

LONDON (ShareCast) - (Sharecast News) - Africa-focussed Atlantic Lithium announced an updated scoping study on the Ewoyaa Lithium Project in Ghana on Tuesday, which it said reaffirmed it as an "industry-leading" asset.
The AIM-traded exploration and development company, formerly known as Ironridge Resources, said the update incorporated the increased JORC resource of 21.3 million tonnes, resulting in a "significant improvement" in project economics and life-of-mine.

It said the scoping study update retained the business case for two million tonnes production per annum, with life-of-mine revenues exceeding $3.43bn.

The update also increased the project's life-of-mine operations to over 11 years, producing an average 300,000 tonnes of 6% lithium oxide spodumene concentrate per annum.

In addition to spodumene production, the study update incorporated two additional revenue streams, including a saleable direct shipping ore fines product, and a saleable feldspar byproduct.

Atlantic Lithium said the study update delivered "exceptional" financial outcomes, with life-of-mine revenues exceeding $3.43bn, a post-tax 8% discounted net present value (NPV8) of $789m, and an internal rate of return of 194% over 11.4 years.

It also included a $70m capital cost with an "industry-leading" payback period of less than one year, C1 cash operating costs of $249 per tonne of 6% lithium spodumene concentrate free on board at Ghana port after byproduct credits, and a pre-tax NPV8 of $1.23bn and EBITDA of $2.02bn for the life-of-mine.

Average EBITDA was set at $178m per annum.

"Today's landmark update regarding the company's exceptional scoping study confirms that the Ewoyaa is an industry-leading asset and transformational for Atlantic Lithium," said chief executive officer Vincent Mascolo.

"The Study outlines a robust two million tonnes per annum operation, which can deliver excellent cash flows, a very quick payback and a pre-tax NPV of over a billion dollars from a 11.4-year operation, producing a coarse, premium DMS concentrate product.

"The project leverages existing infrastructure, including directly adjacent HV power, a major highway within one kilometre of the site, and the major port of Takoradi 110 kilometres away."

Mascolo said few hard-rock lithium projects globally could boast such proximity to existing operational infrastructure, lithium grade and a simple DMS-only process route.

"With the benefit of adjacent infrastructure and without the need to include expensive milling and flotation circuits, the project benefits from a very low upfront capital expenditure.

"Our resource continues to grow, and the upside of the project is clear; further resource drilling recently completed, as such, we expect that the project metrics will improve beyond the current defined life-of-mine."

It was estimated that every additional year of production would add up to $60m in post-tax NPV per annum, Vincent Mascolo added.

"Given these fundamentals, we are very excited by the resurgence and exponential growth potential across the lithium supply chain and reaffirm to the market that Atlantic is ideally poised to capture the lithium market going forward."

At 1152 GMT, shares in Atlantic Lithium were up 7.25% at 24.02p.

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ALL Market Data

Currency UK Pounds
Share Price 52.80p
Change Today 0.80p
% Change 1.54 %
52 Week High 66.60p
52 Week Low 16.40p
Volume 2,795,059
Shares Issued 578.10m
Market Cap £305.24m

ALL Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
99.48% above the market average99.48% above the market average99.48% above the market average99.48% above the market average99.48% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income Not Available
Growth
28.23% above the market average28.23% above the market average28.23% above the market average28.23% above the market average28.23% above the market average
75% below the sector average75% below the sector average75% below the sector average75% below the sector average75% below the sector average

ALL Dividends

No dividends found

Trades for 26-May-2022

Time Volume / Share Price
14:32 10,000 @ 52.80p
14:31 5,618 @ 53.00p
14:17 2,000 @ 53.20p
14:11 10,000 @ 53.16p
14:10 3,899 @ 53.00p

ALL Key Personnel

Finance Director Amanda Harsas

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