AJM - Feasibility Study 11 April 2016 ASX ANNOUNCEMENT...

AJM - Feasibility Study


11 April 2016

ASX ANNOUNCEMENT FEASIBILITY STUDY DELIVERS EXCELLENT RESULTS AT PILGANGOORA LITHIUM PROJECT

KEY FINDINGS OF FEASIBILITY STUDY  Annual Production of 215,000 tonnes (average) of spodumene concentrate (steady state)  LOM Net Revenue of A$1,562 million  LOM Cash Generation of A$773.8 million  NPV of A$382 million and IRR of 59.5% (10% discount rate)  Project payback of 1.7 years  Maiden Ore Reserve Estimate of 18.47Mt @ 1.07% Li2O  18.47 Mt of total ore feed to produce 2.744 Mt of spodumene concentrate production  LOM Strip Ratio of 2.7:1  LOM Cash Cost (FOB) of A$298 per product tonne; Gross Margin of A$348 per tonne