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Outstanding Results Delivered by the Maricunga Lithium Brine Project in Its Updated Definitive Feasibility Study

·4-min read

Lithium Power International Limited is pleased to release the results of its updated Definitive Feasibility Study for the Stage One Maricunga Lithium Brine project.

  • Maricunga Stage One DFS delivers US$1.4B NPV (after tax) at an 8% discount rate

  • An IRR of 39.6% and a 2-year payback period

  • OPEX of US$3,718 per tonne of LCE produced

  • Annual EBITDA of US$324M

  • Direct development cost US$419M, Indirect cost US$145M and Contingency US$62M for a total project CAPEX of US$626M

  • 15,200 tonnes of LCE per annum over 20 years

Highlights

  • The updated Maricunga Stage One Lithium Brine project’s Definitive Feasibility Study (DFS) supports 15,200 tonnes per annum production of lithium carbonate (LCE) for 20 years.

  • Project NPV1 (leveraged basis) of US$1.425B (after tax) at 8% discount rate, providing an IRR of 39.6% and a 2-year payback. Estimated steady-state annual EBITDA of US$324M.

  • Project operating cost places Maricunga among the most efficient producers with an OPEX of US$3,718 per tonne not including credit from potassium chloride (KCl) by-product. KCI production was not considered in the DFS.

  • Project direct development cost estimated at US$419M, indirect costs at US$145M and contingency costs at US$62M to provide a total project CAPEX of US$626M.

  • Exceptional ESG profile aims to achieve carbon neutrality once operation beds down, setting new standards for social relationships. Certification process led by Deloitte will continue during upcoming years as the project advances.

  • Project infrastructure including water rights have been secured by long term contracts during project construction and operation. Access to the National Power Grid has been granted, ensuring future power supply including an important component of renewable energy.

  • Revised DFS completed by Tier-1 engineering consultancy Worley to international standards, with cost inputs from EPC contractors to provide greater certainty on cost estimates. The Resource and Reserve estimates were prepared by Atacama Water.

  • Preliminary indications of interest received from international and Chilean financial institutions and private funds for debt financing and future equity financing of the project. Finance process will continue in coming months.

  • Updating of the EPC proposals will commence during Q1. Final Investment Decision expected for 2022, with construction to start immediately after.

SYDNEY, Australia, Jan. 19, 2022 (GLOBE NEWSWIRE) -- Lithium Power International Limited (ASX: LPI) (“LPI” or the “Company”) through its Joint Venture (“JV”) Company, Minera Salar Blanco S.A. (“MSB”), is pleased to provide details of the updated Definitive Feasibility Study (DFS) for its Maricunga Stage One lithium brine project in northern Chile. The study confirms that Maricunga Stage One could be one of the world’s lowest-cost producers of lithium carbonate, with a solid ESG strategy to support a sustainable future.

NPV Discount Rate

Leveraged (50%)

Pure Equity

Pre-Tax

After-Tax

Pre-Tax

After-Tax

US$M

US$M

US$M

US$M

NPV 8%

1,984

1,425

1,971

1,412

IRR

44.5

39.6

33.4

29.3

Project Payback (Years)

2

2

2.8

2.8

Summary of key economic parameters of the Stage One project

The Company intends to host a webinar on the 21st of January at 10:30am AEDT. Zoom Webinar, details to be provided upon registration. To register your interest for the webinar please click through to the link below:

https://janemorganmanagement-au.zoom.us/webinar/register/WN_4NxtsiUVQ82bMLx1VM0qDw

Access to the full DFS report prepared by Worley, is available on the LPI website http://lithiumpowerinternational.com/

Lithium Power International’s Chief Executive Officer, Cristobal Garcia-Huidobro, commented:

“We are extremely pleased with the results of the updated DFS for the Maricunga Stage One lithium brine project. The strong economics, as well as the exceptional sustainability profile, confirms the high standard and attractiveness of the project.

The priority for 2022 is to finalise project finance for the Stage One project. We are actively working with both international and Chilean financial institutions on different structures for debt financing, as well as with potential strategic partners for equity investments. Update of the EPC proposals will soon commence, with the expectation of a Final Investment Decision (FID) by the end of the year. Construction should start immediately after the FID.

We are continuing to work on the development of a subsequent Stage Two at Maricunga, considering the current significant forecast growth in lithium demand and Stage One being in its final phase of pre-production. This will also benefit from the maturation of new production technologies in the lithium industry, realising the significant value of all our assets.”

This information is drawn from the executive summary of the DFS of the Maricunga “Stage One Project”. More detail is provided in that NI 43-101 report on the DFS for the project by consultants Worley and Atacama Water.

To read the company’s full ASX release with the results of its updated Definitive Feasibility Study for the Stage One Maricunga Lithium Brine project, please click here.

For further information, please contact:

Cristobal Garcia-Huidobro – CEO; or Andrew Phillips – CFO
Lithium Power International
E: info@lithiumpowerinternational.com
Ph: +612 9276 1245
www.lithiumpowerinternational.com
@LithiumPowerLPI

Jane Morgan – Investor and Media Relations
+ 61 (0) 405 555 618
jm@janemorganmanagement.com.au

For U.S. and other international investor relations enquiries:

Arrowhead Business and Investment Decisions, LLC
Thomas Renaud | Managing Director
42 Broadway, 17th Floor
New York, NY 10004
Office: +1 212 619-6889
enquire@arrowheadbid.com

1 Assumes a 50% leverage. On a "100% Equity Basis", the NPV (after tax) is US$1.412B, providing an IRR of 29.3 % and a 2 years and 8 months Payback.


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