Piedmont Lithium: Updated Scoping Study Extends Project Life and Enhances Exceptional Economics
07 August 2019 - 8:00PM
Business Wire
Piedmont Lithium Limited (“Piedmont” or “Company”) is
pleased to report the results of the updated Scoping Study for its
vertically integrated lithium hydroxide chemical project located in
North Carolina, USA. The Scoping Study includes a steady-state
22,700 tonnes per year (“t/y”) lithium hydroxide
(“LiOH”) Chemical Plant supported by a Mine/Concentrator
producing 160,000t/y of 6% Li2O spodumene concentrate. By-products
quartz, feldspar, and mica will provide credits to the cost of
lithium production.
This updated Scoping Study incorporates the expanded Mineral
Resource update published in June 2019 which has extended the
overall project life to 25 years. The Scoping Study features:
- Integrated project to produce 22,700t/y of LiOH
- 25-year project life with 2 years of concentrate-only sales
and 23 years of integrated operations
- More than 100% increase in life-of-project LiOH production
compared with prior studies
- 1st quartile operating costs
- Lithium hydroxide cash costs of US$3,105/t (AISC of
US$3,565/t)
- Spodumene concentrate cash costs of US$199/t (AISC of
US$238/t)
- Exceptional project economics
- NPV8% of US$1.45B
- After-tax IRR of 34%
- Steady-state annual average EBITDA of US$298M
- Mine/Concentrator engineering and metallurgical testwork
completed to PFS-level
- Conventional technology selection in all project
aspects
Keith D. Phillips, President and Chief Executive Officer,
said:
“We are very pleased with the results of the updated Scoping
Study, which reflect the benefits of a 25-year mine life, a refined
concentrator flow sheet and PFS-level engineering and metallurgy.
The economic benefit of developing an integrated lithium chemical
business in North Carolina, USA is clear, driven by the exceptional
infrastructure and human resource advantages of our location, as
well as the competitive royalty and tax regime offered in the
United States.
“Recent corporate transactions (i.e. Wesfarmers/Kidman and
Albemarle/Wodgina) have reinforced the wisdom of the Company’s
integrated business strategy. We will continue to progress our
Mine/Concentrator through the permitting and feasibility processes,
but we will now redouble our efforts on the strategic front by
accelerating our lithium hydroxide testwork and intensifying the
initial strategic discussions we have had with a broad array of
potential strategic, offtake and financial partners.”
To view the full ASX Announcement, click here.
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version on businesswire.com: https://www.businesswire.com/news/home/20190807005169/en/
Keith D. Phillips President & CEO +1 973 809 0505
kphillips@piedmontlithium.com
Anastasios (Taso) Arima Executive Director +1 347 899
1522 tarima@piedmontlithium.com
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