Highlights
• Results from the updated feasibility study for the Sal de Vida Project validate a technically superior, highly profitable, long life (40 years) and low-cost lithium and potash project
• Post-tax Net Present Value (“NPV”) of US$1.48 billion at an 8% discount rate (real)
• Post-tax Internal Rate of Return (“IRR”) of 26.9%, with post-tax payback period of approximately 3 years from first production • Capital cost estimate of US$474 million, including US$31 million for an optional potash production circuit
• Operating costs at full production of US$3,144 per tonne of lithium carbonate after potash credits • Average annual revenues of US$360 million and EBITDA of US$270 million
• JORC-compliant reserve estimate of 1.1 million tonnes of recoverable lithium carbonate equivalent (“LCE”), supports a long initial project life with 25ktpa of lithium carbonate and 94ktpa of potash production respectively
GXY Price at posting:
$3.21 Sentiment: Buy Disclosure: Held
