Ioneer quadruples ore reserve, points to strong economics for Ryolite Ridge

Ioneer quadruples ore reserve, points to strong economics for Ryolite Ridge

Caroline Smith

The Market Online, Australia

Ioneer Ltd (ASX:INR) has boosted the project economics of its Rhyolite Ridge lithium-boron project in Nevada, more than quadrupling its ore reserve from 60 million tonnes (Mt) to 246.6Mt, for an anticipated mine life of 95 years.

This amounts to an increase of 186.6Mt, with 48% of the mineral resource now converted into a reserve which is estimated to comprise 1,464 ppm (parts per million) lithium and 5,444 ppm boron – or 1.92 Mt of lithium carbonate equivalent (LCE) and 7.68 Mt of boric acid equivalent (BAE).

These parameters support Ioneer’s plans to build a large, long-life, low-cost expandable operation, focused on the production of lithium carbonate, boric acid and then battery-grade lithium hydroxide.

The co-product of boric acid is expected to make up 25% of annual revenue from the project in its first 25 years; this is set to keep EBITDA (earnings before interest, taxes, depreciation and amortization) in the green at low lithium prices and EBITDA margin of 65.7% based on average production over first 25 years.

Costs for the Rhyolite Ridge are some of the lowest among global lithium projects, with an all-in sustaining cash cost of US$5,745 per metric tonne lithium carbonate equivalent. Meanwhile, its after-tax NPV is placed at US$1.367 billion, with an unlevered, after-tax internal rate of return (IRR) of 14.5% – making for a suite of robust economics.

Managing director Bernard Rowe said the reserve update was testament to the value of the mineralisation there.

“Today’s updated Reserve and Mine Plan reinforces the importance of Rhyolite Ridge’s remarkable mineralogy,” he said.

“Our Ore Reserve estimate of 247 Mt containing a total of 1.92 Mt LCE and 7.68 Mt BAE make it the largest lithium-boron Reserve in the world.”

Ioneer shares have moved higher since the news, and at 13:17 AEST, they were trading at 13 cents – a rise of 8.33% since the market opened.

Caroline Smith

The Market Online, Australia

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