Nice timing. Let the royalties begin! Ann out from AJM today
ASX ANNOUNCEMENT | 25 July 2018 FIRST LITHIUM CONCENTRATE PRODUCED AT THE ALTURA LITHIUM MINE ■ Lithium concentrate produced 16 months after breaking ground ■ Commissioning process near completion, production ramp-up underway ■ Focus now on delivery of first commercial shipment of SC6 spodumene concentrate Altura Mining Limited (ASX: AJM) is pleased to announce that it has made the transition from developer to miner after producing the first batch of lithium concentrate from its flagship 100% owned Altura Lithium Project. The Company-making milestone comes 16 months since first ground was broken at Pilgangoora in midMarch 2017. Altura has been further encouraged by on-site testing of the first production batch by laboratory operator Intertek. The results have shown a concentrate product grade exceeding the industry benchmark SC6 concentrate specifications and fits comfortably within those required by the Company’s offtake agreements. Further plant optimisation will occur as production is ramped up in coming months. Following the commencement of crushing operations in May, Altura has been working through the final commissioning stages to progress the first delivery of lithium concentrate. Offtake partner Lionergy will receive the first shipment of lithium concentrate aimed at a shipping window next month. Lionergy has also indicated it would like to receive as much as possible of the 100ktpa minimum supply allocation under the Binding Offtake Agreement (BOA) as production at Pilgangoora ramps up in H2 2018. At full production the processing plant will produce 220,000 tonnes per annum of 6% lithium concentrate that will feed into the electric vehicle and static storage lithium battery market. A Definitive Feasibility Study was delivered in April (see ASX announcement 30 April 2018) on a Stage 2 duplication of the processing plant to produce 440,000tpa of lithium concentrate which showed robust economics including an internal rate of return of 63% and a 2.3-year payback. *
AGO Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
