Galaxy raises to 474 million dollars

Galaxy raises to 474 million dollars its calculation of investment in Catamarca​

The Australian mining company Galaxy Resources Limited raised from US $ 370 million to US $ 474 million the calculation of the investment to be made in the Sal de Vida lithium project, located between the provinces of Salta and Catamarca and reaffirmed "the potential of an operation long-lasting, low cost and highly profitable. "
Galaxy presented at its offices in Perth, the capital of the State of Western Australia, the update of the Definitive Feasibility Study (DFS for its acronym in English).
According to that analysis, the net present value of the project is now projected at US $ 1,480 million, compared to the US $ 1,043 million estimated in the feasibility study carried out in August 2016.
Sal de Vida is one of the most important lithium projects in the world and is located in the Catamarca department of Antofagasta de la Sierra, more precisely in the area known as the Salar del Hombre Muerto.
The property, at an altitude of 4,025 meters, is accessible from the city of Salta and has a main electric line 115 kilometers away.
According to the data updated by Galaxy, the mine has the potential to generate average annual revenues of US $ 360 million and an average Ebitda (operating result before depreciation and amortization) of US $ 270 million.
The average operating costs to produce lithium carbonate of battery grade were calculated between US $ 3.144 and US $ 3.410 per ton, which "clearly demonstrates the low cost nature of Sal de Vida".
Faced with these costs, "the continued strength of lithium prices is a clear indication that demand growth will probably outstrip supply growth," Galaxy said.
Regarding the investment to be made in Sal de Vida, Galaxy specified that the capital costs related to the optional potash plant and related infrastructure are approximately US $ 31 million.
"The company," he clarified, "has the flexibility to postpone the decision to install the potash production circuit, as construction progresses, depending on market conditions."
The mineral reserve estimate of 1.1 million tons of recoverable LCE (lithium carbonate equivalent) and 4.2 million tons of potassium chloride (potash or KCI) equivalent "supports a long initial life of the project, over a period of time of 40 years, with an annual production of 25,000 tons of lithium carbonate and 94,000 tons of potash, "the company said.
The project also has "a significant potential for the future growth of the definition of additional resources and the subsequent updating of reserves".
The definitive feasibility study models an operation with an initial three-year ramp to the production of fully planned lithium carbonate, while the production of potash is deferred for two years afterwards.
The general director of Galaxy, Anthony Tse, trusted that the formal review of Sal de Vida's economy "continues to reinforce a world-class asset, as well as a project with a solid financial profile".
The company, for the time being, appointed JP Morgan Australia as advisor in order to evaluate possible strategic partnerships or find potential buyers to advance the project.

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