Cadence Minerals PLC Update - Bacanora Lithium (2097B)
05 June 2019 - 6:06PM
UK Regulatory
TIDMKDNC
RNS Number : 2097B
Cadence Minerals PLC
05 June 2019
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Bacanora Lithium (BCN) Feasibility Study Estimates EUR428
million NPV and 27.4% IRR for Zinnwald Lithium Project.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note
the announcement today by Bacanora Lithium (AIM:BCN) ("Bacanora")
regarding the results of the NI 43-101 Feasibility Study ('FS') for
the Zinnwald Lithium Project in Germany ('Zinnwald' or 'the
Project') which confirm the positive economics and favourable
operating costs for the production of 5,112 tonnes per annum
('tpa') (7,285 tpa LCE) of battery grade Lithium Fluoride ('LiF'),
a high value, downstream product used in the manufacture of lithium
battery electrolytes for the European electric vehicle industry.
With a long life of project of 30 years, the FS estimates a pre-tax
project Net Present Value ('NPV') of EUR428 million (8% discount
rate); an Internal Rate of Return ('IRR') of 27.4%; favourable Life
of Mine ('LOM') operating costs and a 46% EBITDA operating profit
margin.
Bacanora is a lithium exploration and development company.
Cadence holds approximately 1.7% of Bacanora's equity and 30% of
Mexalit and Megalit joint venture companies. Mexalit is the owner
of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral
concessions, which forms part of the 20-year mine plan of the
Sonora Lithium Project in Northern Mexico.
Announcement Highlights:
Confirmed strong economic potential
-- Estimated Project pre-tax IRR of 27.4%; NPV of EUR428 million (8% discount rate)
-- Estimated Project post-tax IRR of 21.5%, NPV of EUR270
million with a project payback of 6.1 years
-- Average LOM annual earnings before interest, taxes,
depreciation and amortisation ('EBITDA') estimated
at EUR58.5 million per annum
-- Long life project with the 30 year FS mine plan equating to
less than 50% of the current identified
mineral resources
-- Base case 30 years revenue and EBITDA estimated at EUR3.86
billion and EUR1.75 billion respectively
Zinnwald: a significant lithium deposit, strategically
positioned in Germany's industrial heartland
-- Total Mineral Reserve (Proven and Probable) estimate of 31.20
million tonnes ('Mt') of ore at a grade of 3,004 ppm containing 94
thousand tonnes ('kt') of contained lithium ('Li')
-- Demonstrated Mineral Resource (Measured and Indicated)
estimate of 35.51 Mt of ore at a lithium grade of 3,519 ppm,
containing 125 kt of Li
-- Deutsche Lithium also owns the exploration licences for the
lithium deposits of the claims "Falkenhain" and "Altenberg DL"
which have the potential to significantly increase Zinnwald's
resource base and Project life
-- Conventional flow sheet uses established sulphate route processing technology
-- Integrated plant designed to process approximately 570,000 tpa of ore (LOM average)
-- Capital cost estimate of EUR159 million includes mining,
processing plant, infrastructure, tailings
management, general administration costs as well as the
requisite contingencies
-- FS includes sale of 32,000 tpa of by-product potassium
sulphate ('SOP', 'K2SO4') to the European fertiliser industry
Next Steps: advance Zinnwald towards production to satisfy
expected continued growth in demand for lithium driven by growing
sectors such as electric vehicles and energy storage
-- Subject to Board approvals and other key milestone events,
project detailed design is expected to commence in H1 2020
The full release can be found at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/14098768.html
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
- Ends -
For further information: Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD
& Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Novum Securities Limited
(Joint Broker) +44 (0) 207 399 9400
Jon Belliss
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed by their use of terms and phrases such as "believe"
"could" "should" "envisage" "estimate" "intend" "may" "plan" "will"
or the negative of those variations or comparable expressions
including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors' current expectations and assumptions regarding the
Company's future growth results of operations performance future
capital and other expenditures (including the amount. nature and
sources of funding thereof) competitive advantages business
prospects and opportunities. Such forward-looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. Many factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions competition environmental and other regulatory changes
actions by governmental authorities the availability of capital
markets reliance on key personnel uninsured and underinsured losses
and other factors many of which are beyond the control of the
Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be
reasonable assumptions. The Company cannot assure investors that
actual results will be consistent with such forward-looking
statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDGIGDLXGGBGCU
(END) Dow Jones Newswires
June 05, 2019 04:06 ET (08:06 GMT)
Cadence Minerals (LSE:KDNC)
Historical Stock Chart
From Apr 2024 to May 2024
Cadence Minerals (LSE:KDNC)
Historical Stock Chart
From May 2023 to May 2024