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PROSPECT RESOURCES LIMITED - Corporate Spotlight

Prospect Resources Limited (ASX: PSC, FRA:5E8) is a battery minerals company with a focus... Prospect Resources Limited (ASX: PSC, FRA:5E8) is a battery minerals company with a focus on lithium in and around Zimbabwe, with the flagship project being the 87% owned Arcadia Lithium project, located on the outskirts of Harare in Zimbabwe.More

Corporate Spotlight

Prospect Resources Limited (ASX: PSC, FRA:5E8) is a battery minerals company with a focus on lithium in and around Zimbabwe, with the flagship project being the 87% owned Arcadia Lithium project, located on the outskirts of Harare in Zimbabwe.
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PSC's Sam Hosack talks board changes and 2021

VIDEOS

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Prospect Resources Managing Director Sam Hosack Discusses the  Lithium market of 2021 and the companies recent board changes  - January 2021 





PSC Managing Director Sam Hosack and the future of lithium, and the rise of Prospect Resources in 2021



 Prospect Resources (ASX:PSC) to raise capital and accelerate Arcadia



Prospect Resources to raise $6m for Arcadia Lithium Project  - The Market Herald Live, October 2020


Sam Hosack MD, Prospect Resources updates the market with a letter to shareholders. 




Investor Updates with Sam Hosack, MD PSC - August 2020





Investor Updates and Resource Upgrade with Sam Hosack, Md Prospect Resources - July 2020





Letter to Shareholders with Sam Hosack, MD Prospect Resources - 13th May 2020






Interview with Sam Hosack, MD Prospect Resources - February 2020


PSC ADVANCE ARCADIA PILOT PLANT

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Prospect Resources (ASX:PSC) advances Arcadia lithium pilot plant

Mining

ASX:PSC    MCAP $32.87M 

Source: The Market Herald Live News, November 2020


  • After securing long-lead equipment, Prospect Resources (PSC) is ready to begin its pilot plant project at the Arcadia Lithium Mine in Zimbabwe
  • The pilot plant will initially produce 500 tonnes of high-purity petalite and 120 tonnes of low-iron spodumene
  • The lithium developer will supply the bulk samples to its customers as well as to Uranium One who is conducting due diligence on the company and its project
  • By mid-next year, Prospect hopes to complete a front end engineering and design study to determine the phases, scale of growth and capacity of Arcadia
  • After raising $6 million last month, Prospect is well funded to develop the pilot plant and complete the study
  • Company shares are trading 11.1 per cent higher for 11 cents in early afternoon trade

Prospect Resources (ASX:PSC) is set to commence its pilot plant project at the Arcadia Lithium Mine to produce high-purity petalite and low-iron spodumene. 


Long-lead equipment items, such as flotation cells, have now been secured and the high-purity flotation plant is ready to operate.


The pilot plant will de-risk the flotation process, supply bulk samples of Prospect's products to customers to obtain product qualification and maximise demand, as well as enhance technical elements of the project execution phase.


Additionally, the plant will supply samples to Uranium One Group so it can validate the product as it continues due diligence on Prospect and the Arcadia Lithium Mine.


"Our current key focus is to operate a pilot plant to replicate the Arcadia flowsheet to produce high purity petalite and spodumene. The pilot plant delivers a number of key objectives for customers, project finance parties and investors in de-risking the Arcadia project," Managing Director Sam Hosack said.


The pilot plant's design is based on German consultancy, ANZAPLAN's, flotation test work. The size of the pilot plant was also scaled up by the Beijing General Research Institute of Mining and Metallurgy using flotation technology solutions.


Further, ADP Marine and Modular performed a process design audit on the plant to confirm the process design, equipment selection and sizing which is based on the ANZAPLAN flotation solution.


Initially, the pilot plant will produce 500 tonnes of petalite and 120 tonnes of spodumene concentrates for customers to qualify and validate.


Prospect Resources plans to complete a front end engineering and design (FEED) study in the first half of next year. The study will determine the phases, scale of growth and capacity of the Zimbabwe-based project.


 Any modifications or improvements that are observed in the pilot phase will be included in the FEED study.


Last month, Prospect completed a $6 million capital raise to develop the pilot plant. The company has also allocated money to complete the FEED study.


Read the full article on The Market Herald Here 

PSC TRADES HIGHER ON SEP RESULTS

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Prospect Resources (ASX:PSC) trades higher on September results

Materials

ASX:PSC    MCAP $36.52M 
Prospect Resources (ASX:PSC) - Managing Director, Sam Hosack - The Market Herald

  • African lithium explorer Prospect Resources' (PSC) shares are trading more than 9 per cent higher on the back of its September quarterly results
  • In August, the company secured a seven-year offtake agreement with global minerals company, Sibelco 
  • Sibelco agreed to offtake up to 700,000 dry metric tonnes of ultra-low iron petalite concentrate from Prospect's Arcadia Lithium Project in Zimbabwe
  • Prospect also confirmed the Arcadia Project's position as a potential key player in the glass and ceramics industry
  • Prospect kept operating expenditure significantly lower compared to the June quarter - slashing it almost by half
  • By the end of September, Prospect had around $1.38 million in cash and received a US$10 million (roughly A$14.1 million) funding commitment from an existing offtake partner
  • Company shares are up 9.09 per cent and are trading for 12 cents

Prospect Resources' (ASX:PSC) shares are trading more than 9 per cent higher today on the back of its September quarterly results.


In August, the lithium explorer secured an offtake agreement with global industrial minerals company, Sibelco N.V. 


The seven-year partnership will see Sibelco offtake up to 700,000 dry metric tonnes of high-quality, ultra-low iron petalite concentrate from Prospect's Arcadia Lithium Project in Zimbabwe. 


Prospect Managing Director, Sam Hosack, is pleased to have secured a long term offtake partner.

"Sibelco is the largest distributor of ultra-low iron petalite in Europe and possibly the world and we believe that this is the largest ultra-low iron petalite offtake agreement ever signed," Sam said.


The Arcada Lithium Project represents a globally significant hard rock lithium resource. 


During the September quarter, the business confirmed the mine at the project as an ultra-low iron lithium producer - making it one of few in the world that are able to supply the premium-priced, ultra-low iron market for spodumene or petalite.


Essentially, the higher lithia and ultra-low iron oxide content that a petalite flotation product has, the higher the chance of being used in the glass and ceramics industry.


Prospect also appointed Renaissance Capital as its exclusive financial advisor for the potential sale of all or part of the assets of Arcadia or Prospect itself to Uranium One.


Uranium One is a world-leading uranium producer whom Prospect entered a memorandum of understanding (MOU) with in December 2019.


The MOU gave Uranium One the right to a 90-day exclusivity period to conduct due diligence on the lithium project and on Prospect. However, the MOU was extended multiple times.


In terms of cashflow, Prospect implemented a company-wide cost reduction program in response to Covid-19 to maintain its financial position. The board and management also agreed to a 50 per cent cut in salaries. 


During the September quarter, Prospect spent around $431,000 on operating activities - most of which went towards staff and admin costs as well as corporate spending. However, the total figure is almost half the amount Prospect spent on operating activities during the June quarter.


The lithium miner received a US$10 million (roughly A$14.1 million) funding commitment from offtake partner, Sinomine as the ball mill for the Arcadia mine was installed.


At the end of Q1 FY21, Prospect had around $1.38 million in cash. 


In the current quarter, Prospect has started procurement and development of a pilot plant for the Arcadia Project. It is also evaluating its Chishanya Phosphate Project, progressing discussions with Uranium One and collaborating with customers on product qualifications from the pilot plant.


Read the full article on The Market Herald 

PSC POSITIONED AS PETALITE LEADER

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Prospect Resources (ASX:PSC) positions itself as petalite leader


Prospect Resources (ASX:PSC) positions itself as petalite leader
Source: Prospect Resources


  • Prospect Resources (PSC) has managed to position itself as the only company to produce low iron spodumene and ultralow iron petalite concentrates
  • Petalite is an in-demand commodity due and it's primarily used in the production of glass and ceramics
  • While spodumene can be used in the production of battery packs in electrical vehicles and for use in portable electronic devices (PED)
  • Prospect owns 87 per cent of the Arcadia Project, which is Africa's most advanced lithium project and houses both concentrates
  • The company recently signed a seven-year offtake agreement with leading industrial minerals company Sibelco
  • It's also secured funding by appointing Afreximbank to arrange and syndicate a US$143 million project finance debt facility
  • Shares in Prospect Resources are trading for 16.5 cents each

Dual ASX & FRA listed Prospect Resources (PSC) is in the enviable position of being one of the world leaders of petalite — an in-demand mineral which has uses across the glass, ceramics and electric vehicle markets.


The company's majority-owned Arcadia Project in Zimbabwe is regarded as a globally unique deposit, which can produce both ultralow iron petalite concentrate and low iron spodumene concentrate.


Arcadia is also at the exciting stage of being shovel-ready with a seven-year offtake agreement already in place, making the entire project primed for production.


Combined with a potential US$143 million debt facility (around A$199.15 million) for Arcadia, Prospect stands ready to take advantage of the growing lithium demand and petalite's unique properties.


Why petalite?

Petalite is a lithium aluminium silicate mineral, which is considered valuable as its an insoluble form of lithium. It's also prized for being able to withstand temperatures of up 700 degrees without losing shape, making it perfect for the glass and ceramic industries.


While spodumene, a similar mineral found alongside petalite in lithium-rich granite pegmatites, can similarly be used in glass manufacturing.


It also has value in the electric vehicle industry, as lithium hydroxide can be processed from spodumene, which is needed for the lithium-ion batteries at the heart of almost all EVs.


This is significant as the global demand for electric vehicles is on track to explode, as evidenced by the Californian Government's recent decision to ban the sale of all gas-powered cars by 2035.


By July this year, EV's made up 18 per cent of all car sales in Europe alone, with the global market for electric cars expected to total a staggering $802 billion by 2027.


Currently, electric vehicle sales equate to approximately 3 per cent of all passenger vehicle sales globally, but that number is again tipped to grow significantly.


The growth will be spurred on by EV's reaching cost parity with internal combustion vehicles — as the economies of scale in lithium batteries push down the cost of the cars.


EV leader Tesla even announced recently at its Battery Day 2020 event that it plans to halve the cost per kilowatt-hours of batteries, allowing it to start selling a vehicle with an entry point price of US$25,000 (around A$35,000)


.Arcadia explained

With two in-demand products, attention has now turned to commencing production at Prospect's flagship Arcadia Lithium Project, which is located around 38 kilometres outside of Zimbabwe’s capital city.


The project has an ore reserve estimate of 37.4 million tonnes a 1.22 per cent lithium oxide and 21 parts per million tantalum pentoxide. It also has a high-grade zone mineral resource estimate of 43.2 million tonnes at 1.41 per cent lithium oxide and 119 parts per million tantalum pentoxide — with a 1 per cent lithium oxide cut-off.


A recent definitive feasibility study looking at the economics of the Arcadia project also estimated it has a 15-and-a half year mine life if it was open pit. Across the life of the mine, the project is expected to bring in around US$3.42 billion (around A$4.84 billion) in revenue with an internal rate of return of 71 per cent.


Prospect has already signed up a number of offtake partners, including Sinomine Resource Group, which recently started construction to expand its battery grade lithium hydroxide plant, located in the Jiangxi Province of China.


PSC has also signed leading industrial minerals company Sibelco as an offtake partner for its petalite product. The privately owned family business generates revenues over €3.5 billion (approximately A$5.79 billion) and has 174 production sites operating in more than 30 countries.


The seven-year offtake agreement signed by Prospect and Sibelco not only locks in guaranteed offtake of 700,000 dmt per annum of high quality, ultra-low iron petalite, it also gives PSC access to the global businesses huge customer base, with end customer sales tied into the contract.


Future deals

The company has additionally fielded interest from leading clean energy company Uranium One, who last year expressed interest in becoming an offtake partner and even snapping up a stake in the company.


With the unique global deposit secured, an offtake agreement in place and all necessary permits obtained - Prospect has managed to get the Arcadia project to a stage where it is shovel-ready and merely awaiting finance.


Source: Prospect Resources


The company isn't looking at a long wait, considering it already signed up the African Export-Import Bank Afreximbank to facilitate funding for its flagship project. Afreximbank has agreed to organise and manage the primary syndicate, which will raise a total of US$143m (around A$199.15 million) project finance debt and also chip in US$75 million of its own funds.


At this stage, due diligence is still being carried out by Afreximbank as they work to progress securing the necessary funding to get Arcadia up and running. Prospect Resources Managing Director Sam Hosack said the growing demand for lithium will help speed-up the process.


"Many in the industry are calling the lithium market bottom, with demand and prices in China increasing over the past few weeks. We expect the prices to continue to strengthen over late 2020 and see more material price rises in 2021 as the supply shortage emerges," he said.


"Tesla’s battery day and recent offtake agreements demonstrate that car manufacturers are rushing to secure lithium supply. Prospect is well-positioned as a potential near term low cost and sizeable producer, to deliver sustainably sourced lithium to its offtake partners and the broader market," he added.


"This rising market is set to be in full swing when Prospect is targeting to commence production. We're excited for the next 12 months ahead, having now secured Sibelco and progressing with Uranium One and Afreximbank," he concluded.


Read the full article on The Market Herald here: https://themarketherald.com.au/prospect-resources-asxpsc-positions-itself-as-petalite-leader-2020-09-30/

PSC APPOINTS RENAISSANCE SECURITIES

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6th June 2020 - The Market Herald


  • Prospect Resources (PSC) has appointed Renaissance Securities as its exclusive merger and acquisitions advisor in relation to an agreement with Uranium One Group
  • Renaissance will provide advice on the memorandum of understanding with Uranium Group, which was struck in December last year
  • This agreement is in relation to the potential sale of Prospect's Arcadia Lithium Project in Zimbabwe
  • This MoU has been extended twice and will now expire on August 10, however, Prospect has flagged there is no guarantee for a binding agreement or proposal
  • Furthermore, Prospect will not be placing the shortfall in relation to its rights issue
  • Company shares are up a slight 1.43 per cent and are trading for 7.1 cents each

Prospect Resources (PSC) has appointed Renaissance Securities as its exclusive financial advisor in relation to an agreement with Uranium One Group.


On December 12 2019, Prospect entered a memorandum of understanding (MoU) with Uranium One, a global energy company and one of the world's largest uranium producers. The MoU relates to Prospect's flagship Arcadia Lithium Mine in Zimbabwe. 


Uranium One was given a 90-day exclusivity period, however, on March 13, the MoU was extended until April 30. 

As the expiry date was looming, the company further extended the MoU term to August 10. Prospect attributed this decision to "logistical challenges facing all companies during the COVID-19 lockdown."


The MoU discussions are reportedly travelling well, and Renaissance will provide merger and acquisitions advice on the potential sale, directly or indirectly, of Prospect's Arcadia Lithium Project.


Renaissance is an independent investment bank that provides access to over 50 markets across the world. 

The discussions with Uranium One are ongoing, however, there is no guarantee that these discussions or MoU will result in a formal binding agreement or proposal in regards to the Arcadia Lithium Project.


Additionally, Prospect has advised that despite receiving a number of enquiries regarding the placement of the remaining shortfall shares from the rights issue completed in May, it won't be placing the shortfall. The rights issue is fully closed.


Company shares are up a slight 1.43 per cent and are trading for 7.1 cents each at 10:08 am AEST.


Read the full article on The Market Herald

PSC SIGNS MOU WITH SIBELCO

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PROSPECT RESOURCES SIGNS MOU WITH SIBELCO

ASX Release 15th April 2020


African lithium developer, Prospect Resources Ltd (ASX: PSC, FRA:5E8) (“Prospect” or “the Company”) is pleased to announce that it has entered into a Memorandum of Understanding (“MOU”) with SCR- Sibelco N.V (“Sibelco”) for the offtake of Arcadia’s ultra-low iron petalite product.


Memorandum of Understanding

The purpose of the MOU is to provide an exclusive period of time for the parties to negotiate and execute a Binding Offtake Agreement for Arcadia’s ultra-low iron petalite product (“the Product”). The MOU contemplates signing the Binding Offtake Agreement by 1 June 2020.


Whilst Prospect and Sibelco have agreed not to deal with any other party in relation to the supply of ultra low iron petalite, nothing in the MOU prohibits Prospect from continuing discussions with the Uranium One Group.


Prospect’s Executive Chairman, Hugh Warner said “I am pleased to announce that we have signed an MOU with Sibelco for Arcadia’s premium ultra-low iron petalite. Sibelco is the largest distributor of ultra-low iron petalite in Europe and possibly the world. It is a significant ‘blue chip’ European customer, with annual turnover of some €3.5 billion. Once in production, Prospect will be the largest ultra-low iron petalite producer in the world.”


About Sibelco

Sibelco is a global industrial minerals solutions company. Sibelco was founded in 1872, initially supplying silica sand from deposits in Flanders to Belgium’s major glass producers. Sibelco is a privately owned family business, generating revenues over €3.5 billion, operating 174 production sites in more than 30 countries and with a team of over 8,500 people. Sibelco’s main products are silica, high purity quartz and speciality minerals such as petalite. https://www.sibelco.com/



Click Here to view the full announcement

ABOUT US

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ABOUT PROSPECT RESOURCES

Click Here To View More On HotCopper


Leading Africa in the Battery Minerals Revolution 

 

Prospect Resources Limited (ASX: PSC, FRA:5E8) is a battery minerals company with a focus on lithium in and around Zimbabwe, with the flagship project being the 87% owned Arcadia Lithium project, located on the outskirts of Harare in Zimbabwe. 

Prospect has a strong, agile team split between Africa and Perth who have the optimal experience to build Prospect as Africa's leading mineral business.


Australian Team – financing, investor relations, corporate governance, offtake and marketing

  • Small and focused head office team
  • Deep financial market and transaction experience


African Team - development and exploration

  • Strong and experienced local team with a track record of discovering, proving, building and operating mining projects in Africa
  • Significant majority of the Prospect team is based on the ground in the region



PROJECT HIGHLIGHTS


Arcadia, a game changing lithium project

Arcadia Lithium Project represents a globally significant hard rock lithium resource. The project is being rapidly developed by Prospect’s experienced team, with the focus on near term production of petalite and spodumene concentrates.

  • 7th largest global hard rock lithium asset
  • Fully permitted to commence production
  • Strong project economics to drive returns for shareholders
  • Diversified markets across Europe, North America and North Asia
  • Close proximity to a skilled labour force and established infrastructure 
  • Operating in an established mining jurisdiction, with over 100 years of mining history
  • Offtake agreement and equity investment from Shenzhen Stock Exchange listed lithium chemical converter Sinomine Resources Group
  • Appointed Afreximbank to arrange and manage the primary syndication of a US$143m project finance debt facility 

 

 

On 12th Dec 2019, Prospect released an updated Definitive Feasibility Study (DFS) with the following key project outcomes:


  • US$710M pre-tax NPV10, up 39%. Confirming the value of the project and the opportunity for Prospect Resources
  • Exceptional profitability and healthy operating margins with US$168M average annual EBITDA for the first 5 years of operation  
  • US$162M capital expenditure estimate Including EPCM contract cost provision, and 14% contingency (including EAA*)
  • US$3.42B LOM revenue excluding tantalum credits, up 17%. Demonstrating the value to shareholders
  • 15.5 year mine life,further increasing Arcadia's exposure to long term EV demand
  • Substantially improving project returns with an internal rate of return (IRR) of 71% (pre-tax), up from IRR 44%



Click Here To View Prospect Resources Website

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