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https://s t o c k h e a d. com.au/resources/high-voltage-these-5-asx-battery-metal-stocks-are-outperforming-everyone-in-2023/

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ESSENTIAL METALS (ASX:ESS)
Early this year, small but advanced lithium explorer ESS received a takeover offer from Tianqi Lithium Energy Australia (TLEA), a JV between Tianqi Lithium (51%) and IGO (ASX:IGO) (49%).

Growth-hungry TLEA currently owns an integrated lithium business in WA, including a 51% interest in the Greenbushes lithium operation and the Kwinana lithium hydroxide refinery.

The deal valued ESS at ~$136m, or 50c per share –a 44.9% premium to the last closing price.

The Scheme is subject to various conditions including approval by ESS shareholders at a meeting proposed to be held in April 2023.

ESS’ Pioneer Dome lithium project in WA contains an actual resource (more than most ASX explorers can boast) of 11.2Mt at 1.16% lithium.

A scoping study put a $293m price on developing the Pioneer Dome mine, which would produce 193,745t of 5.7% Li2O spodumene concentrate a year at average life of mine cash costs of $1030/t.

The mine would boast an NPV of between $275-458m, with a base case of $367m, base case internal rate of return of 40% and payback period of 1.7 years against a 7.3 year mine life extracting 8.8Mt of ore at 1.11% Li2O.

ESS assumes construction and investment commencing in July 2024 with first production in January 2026.

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