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Analyst Report Cites Metals Australia’s Potential Re-rating Catalysts
In its recent coverage of Metals Australia Limited (ASX:MLS), Australian analyst firm Vested Equities’ has given Metals Australia a valuation of approximately 4.7 cents per share, reflecting a compelling proposition. This valuation, based on a comparative assessment of graphite peers and the intrinsic value of the Lac Rainy resource, does not yet account for the full potential of the company's expansive exploration portfolio, the Vested report indicates. With the anticipation of further exploration unlocking substantial value, Metals Australia presents an attractive investment opportunity with significant upside potential, it adds.
Metals Australia stands out as a formidable player in the battery minerals sector with its robust portfolio of exploration and development projects. Strategically situated in the premier mining jurisdictions of Quebec, Canada and Western Australia, MLS showcases a suite of projects rich in sought-after battery metals such as lithium and graphite. Amidst China's tightening graphite export controls, MLS's assets gain geostrategic importance, offering a non-Chinese source of premium battery-grade graphite crucial for the North American lithium-ion/EV battery market.
“Metals Australia Limited is strategically positioned to experience a re-rating of its share price, driven by a confluence of catalysts,” the report states, citing MLS's strategic positioning, resource base and proactive management team as collectively form a compelling investment narrative.
Lac Carheil (formerly Lac Rainy) flake-graphite to battery anode flow sheet.
Report Highlights:
- The Lac Rainy project, a cornerstone of MLS's portfolio, boasts a JORC 2012 Mineral Resource of 13.3 million tons at 11.5 percent graphitic carbon. This includes a high-grade indicated resource and an inferred resource with significant economic potential confirmed by a completed scoping study. With recent contracts aimed at expanding and enhancing the resource, alongside plans for a flake graphite concentrate plant, the project's potential is yet to be fully tapped, promising substantial upside.
- Aggressive exploration programs for lithium and gold. The discovery of a new LCT pegmatite within the Corvette South Lithium trend in Quebec, parallels the significant findings by Patriot Battery. This, along with the gold prospects in the southeastern tenements and the lithium-bearing pegmatites in the Manindi project, highlight the company's dynamic exploration strategy. Furthermore, the acquisition of copper and gold tenements through Payne Gully Gold adds another layer of prospective value to the company's assets.
- The leadership of MLS, with the recent appointment of CEO Paul Ferguson, is poised to leverage extensive industry experience to accelerate the exploration and development activities. The company's financial health is robust, with cash reserves surpassing its market capitalization, indicating a strong financial position to sustain its ambitious growth plans.
Click here for the full report
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Metals Australia
Overview
Metals Australia (ASX:MLS) is a mineral exploration company with a high-quality portfolio of advanced battery minerals and metals projects in Tier 1 mining jurisdictions of Western Australia and Canada. The portfolio comprises two critical minerals projects in Quebec, Canada — the Lac Carheil flake graphite project and the Corvette River lithium (and gold) project. The Australian portfolio comprises four projects: Tennant Creek (copper-gold) in the Northern Territory and Warrambie (lithium, nickel-copper, gold), Murchison (gold) and Manindi (lithium, vanadium-titanium, zinc) – all in Western Australia.
The push for net zero targets and the call from policymakers to transition to cleaner energy has intensified the focus on electric vehicles (EVs) and battery storage. The EV automakers and battery manufacturers, rely on essential materials such as graphite and metals, including lithium, nickel, copper and cobalt, to manufacture the batteries that are used in these vehicles and storage batteries generally. This has driven carmakers and battery manufacturers to partner with battery material suppliers under direct off-take agreements. Further, some automakers/battery manufacturers are buying equity stakes in miners, involving them directly in financing decisions for the development of mining projects. This is encouraging for companies such as Metals Australia as it actively advances its projects towards development.
Figure 2 – Graphite is a Critical Mineral required for the mass electrification of auto transportation.
Metals Australia is focused on progressing its flagship Lac Carheil flake graphite project in Quebec, Canada. The project is well-positioned to supply high quality graphite products, including battery-grade graphite to the North American market – including for lithium-ion and EV battery production in the future. The company announced positive sampling results across a 36-km strike length of identified graphite trends at Lac Carheil, including many values over 20% Cg and an exceptionally high-grade sample containing over 63% Cg. The company has planned a drilling program to test new high-grade zones identified from the sampling program, which will form the basis for upgrading the existing Lac Carheil Mineral Resource. An application for the drilling program is progressing with the Quebec regulator. Additionally, the company has recently commenced a Flake Graphite concentrate prefeasibility study with Lycopodium in Ontario and a downstream battery anode plant design with ANZAPLAN in Germany.
Metals Australia is also advancing its lithium, gold and silver exploration project at Corvette River, which is adjacent to Patriot Battery Metals’ world-class lithium project. Further, the company carries out aggressive exploration programs at its other projects, including Manindi, Warrambie & the Murchison in Western Australia and Tennant Creek in the Northern Territory region of Australia.
Metals Australia is well-funded to complete all its planned exploration and project studies. The cash position at the end of Q1 2024 was AU$17.86 million, which we note was higher than the company’s market capital at current share price. Metals Australia benefits from a team of professionals boasting extensive expertise in geology and mining. The appointment of experienced mining executive Paul Ferguson as the CEO is positive for the company. Since joining in January 2024, he has significantly advanced planning and preparation for the exploration, metallurgical test work programs, and design studies required to move its flagship Lac Carheil high-grade graphite project towards development. The Corvette Project has also completed exploration planning and is now fully permitted for drilling and trenching work during the northern hemisphere summer.
Company Highlights
- Metals Australia is rapidly advancing its flag ship Lac Carheil Graphite Project in Quebec, Canada. In addition, the company has a suite of high-quality exploration projects – including Lithium, Gold and Silver in Quebec, Canada and Lithium, Gold, Copper & Vanadium in Western Australia (WA) and the Northern Territory (NT).
- All projects are in Tier-1 mining jurisdictions (Canada and Australia) with world-class prospectivity and stable geo-politically.
- The company has six key exploration and development projects:
- two in Canada: the Lac Carheil high-grade flake graphite project and the Corvette River lithium and gold-silver-copper exploration project, and,
- four in Australia: Warrambie (lithium, nickel-copper, gold), Murchison (gold) and Manindi (lithium, vanadium-titanium, zinc-silver) in WA, and Tennant Creek (Warrego East copper-gold) in the NT.
- The focus is to rapidly advance its flagship Lac Carheil Graphite Project towards development. A drilling program is already contracted to substantially increase the existing JORC 2012 Mineral Resource of 13.3 Mt @ 11.5 percent graphitic carbon (Cg) and test the potential of the many other identified high-grade graphite trends.
- The 2020 Scoping Study on Lac Carheil based on the existing resource, representing only 1km of drilling out of the total 36kms of identified graphite trends, indicates a 14-year mine life with a production of 100,000 tons per annum and a pre-tax NPV @ 8 percent of US$123 million (~AUD$190 million).
- There are multiple catalysts at Lac Carheil in the near term including a pre-feasibility study (PFS) (underway), a scoping study on downstream battery (anode) - grade graphite production, and planned drilling aiming to at least double the resource as well as test other identified high-grade graphite trends.
- Furthermore, other projects in Canada including the Corvette River lithium and gold targets, and exploration in Australia at Manindi, Warrambie, Murchison and Warrego – are all seeing active progress.
- The company is well-funded to complete all its planned exploration and project studies. The cash position at the end of Q1 2024 was AU$17.86 million.
- Metals Australia is led by a seasoned board and management team possessing extensive mining sector experience and a proven track record of successful discoveries and project developments. With funding in place, the company is well-positioned to capitalise on growth prospects.
Figure 1 – Location of Metals Australia’s projects in the Tier 1 Mining Jurisdictions in Quebec, Canada and Australia’s Western Australia and the Northern Territory.
Key Projects
Canada
Lac Carheil Flake Graphite Project (MLS 100%)
Conceptual 3D Mining layout from February 2021 Scoping Study (Lac Carheil Project formerly named Lac Rainy Project)
The Lac Carheil Graphite Project is located in eastern Quebec, Canada, a tier 1 mining jurisdiction with access to excellent infrastructure, including hydroelectric power facilities. The project hosts an existing JORC 2012 mineral resource of 13.3 million tons (Mt) @ 11.5 percent graphitic carbon, which was announced in 2020 and a scoping study was completed and reported on in early 2021. Battery test work followed, in Germany, and this demonstrated the Lac Carheil Graphite concentrate could be shaped, purified, coated and used in battery applications with excellent results. Given the above work, the company carried out further field work, recently announcing exceptionally high-grade sampling results from 80 samples on 10 identified graphitic trends across the property. This included a sample containing 63 percent graphitic carbon, and 10 samples containing over 20% Cg. The average grade of the sampling was 11% Cg, which is comparable to the current high-grade resource. The combined strike length of the identified high-grade graphitic zones is over 36 kms. This compares to just 1 km of drilling on 1.6 kms of graphite trend that was utilised to obtain the existing resource. The potential for expanding and upgrading the existing resource remains enormous.
Figure 4 –Lac Carheil Graphite Project - Electromagnetic imagery outlining graphite trends and the resource
Additional drilling and development studies are either planned or are already underway, including a pre-feasibility study for a high grade Flake graphite concentrate product – which has commenced and a downstream purification options assessment and a scoping study for a battery anode facility in North America, which has been contracted. The company also announced it is contract ready for its planned drilling program and will fast-track the program as soon as permits are received from the Quebec regulator.
Corvette River Lithium Project (MLS 100%)
Corvette River Lithium, gold and silver Project is located in Quebec’s James Bay region Metals Australia recently announced that it is fully permitted to advance an extensive field exploration program across its holdings which include the wholly owned East Pontois, Felicie and West Pontois projects, situated within Patriot Battery Metals' (ASX:PMT) CV Lithium Trend, as well as tenements at West and East Eade in the company's parallel Corvette River South Trend. A field mapping and sampling program concluded last year and identified large, potentially lithium-bearing pegmatites immediately along strike from Patriot Battery Metals’ world-class lithium pegmatite discoveries. Additionally, the company has flagged significant gold and silver samples from its review of work previously completed across the field as is illustrated in the diagram below.Figure 5 – The Corvette Projects in the James Bay region of Canada. Prospective for Lithium, Gold & Silver
Australian Projects
Warrambie Project (MLS 80%)
The Warrambie project is located in the Pilbara region of Western Australia. It is 20 kms west of the Andover Lithium discovery (Azure Minerals (ASX:AZS). Metals Australia has completed geophysical surveys across the area and is identifying targets for further field exploration and drilling.
Tennant Creek (Copper-Gold) Project (MLS 80%)
Metals Australia acquired the tenements as part of a package purchased from Payne Gully Gold in 2022. The company’s tenements include a granted exploration license (E32725) directly along strike to the east of the Warrego copper-gold deposit, which has a production of 1.45 Million Ounces of gold at 8 grams per tonne and over 90,000 tonnes of Copper at 2%. The Warrego mine operated from the late 1950’s through until 1989. It was found under sedimentary cover. The area and this land package is under detailed review utilizing available geophysical surveys. The company aims to identify further targets hidden under shallow sediment cover.
Murchison Gold Project (MLS 80%)
The Murchison tenements were also acquired as part of the Payne Gully Gold transaction. Metals Australia owns exploration licenses at the Murchison gold project, which is adjacent to the >5 million ounces (Moz) Big Bell gold deposit. The company plans to conduct detailed magnetics and gravity surveys to test for extensions and repeats of high-grade gold deposits.
Manindi Project (MLS 80%)
The Manindi project is located in the Murchison District, approximately 500 kms northeast of Perth in Western Australia. The project comprises three mining leases and has an established high-grade zinc mineral resource. The metallurgical test work has located spodumene in samples from a high-grade lithium intersection of 12m @ 1.38 percent lithium oxide, including 3m @ 2.12 percent lithium oxide. The company also made a new vanadium-titanium discovery at the Manindi project.Management Team
Paul Ferguson – Chief Executive Officer
A Mining Engineer, Paul Ferguson has over three decades of experience in the resources and energy sectors across North America, Asia and Australia. He has extensive project development and operational experience working in Canada. He has worked in oil & gas major ExxonMobil across project stages, including feasibility, design, construction, and operation. He has worked in Executive level roles within Australia, including at GMA Garnet and held increasingly more senior roles with BHP (Iron Ore & Coking Coal) and then with Exxon Coal Minerals and Mobil Oil Australia during the early stages of his career.
Tanya Newby – CFO and Joint Company Secretary
Tanya Newby is a finance and governance professional with over 20 years experience in various corporate and commercial roles. She has a strong background in the resources sector and has provided financial advice and assistance to a number of publicly listed entities through exploration, project development through to the production stage. Tanya is a member of the Institute of Chartered Accountants, Member of the Governance Institute of Australia and a Graduate Member of the Institute of Company Directors.
Michael Muhling – Joint Company Secretary
Michael Muhling has over two decades of experience in the resources, including 15 years in senior roles with ASX-listed companies. He is a fellow of CPA Australia, The Chartered Governance Institute, and the Governance Institute of Australia.
John Dugdale – Technical Advisor
John Dugdale is a geologist with over 35 years of experience in the discovery and development of graphite, lithium, gold, nickel and copper projects. His corporate experience includes serving as a director and CEO of several junior resource companies focused on nickel-cobalt, graphite and copper-gold projects. Additionally, he has experience in funds management with Lion Selection Group.
Chris Ramsay – General Manager Geology
Chris Ramsay is a geologist and project manager with over 25 years of experience in the global mining industry. He has been involved in exploration, mine development and operations for mining projects in Australasia, Southeast Asia, and parts of Africa and North America.
Board
Michael Scivolo – Non-executive Chairman
Michael Scivolo has extensive accounting and taxation experience for corporate and non-corporate entities. He was a partner/director at a CPA firm until 2011 and has since been consulting in accounting and taxation. Scivolo is on the boards of several ASX-listed mining companies, including Sabre Resources, Golden Deeps and Tennant Minerals Ltd.
Alexander Biggs – Non-executive Director
Alexander Biggs has over 20 years of experience in the mining and engineering sector. During his career, he has been involved in various activities, including operations, consulting, finance and capital raising. He is currently the managing director of Lightning Minerals (ASX) and was previously the managing director of Critical Resources (ASX:CRR). Biggs is a member of the Australian Institute of Mining and Metallurgy and a graduate of the Western Australian School of Mines.
Rachelle Domansky – Non-executive Director
Rachelle Domansky is an ESG specialist and a consulting psychologist for businesses, governments and educational institutions in the Asia-Pacific region. In addition to Metals Australia, Rachelle holds non-executive board positions at Quebec Lithium and Access Plus WA Deaf.
Basil Conti – Non-executive Director
Basil Conti has been associated with the mining industry for over 25 years. He is a fellow of the Institute of Chartered Accountants Australia & NZ and was a partner/director of a chartered accounting firm in West Perth until 2015.
Successful Placement to Raise $750,000
The Placement proceeds will be used to part fund project generation, working capital and exploration activities in Canada.
The Placement Shares will rank equally with existing fully paid ordinary shares. Settlement of the Placement is expected to be completed on Tuesday, 30 July 2024.
The issue price represents a 4.0% discount to BMM’s last close on 24 June 2024 of $0.052, a 4.9% discount to the 5-day VWAP of $0.0524, a 8.6% discount to the 15-day VWAP of $0.0543 and a 14.5% discount to the 30-day VWAP of $0.0572.
BMM will issue one (1) free attaching unlisted option (Placement Option) for every two (2) Placement Shares issued pursuant to the Placement. The 7,500,000 Placement Options will be exercisable at 7.5 cents each, with an expiry three (3) years from the date of issue.
The Placement Shares will be issued pursuant to the Company’s existing placement capacities under ASX Listing Rules 7.1 (8,019,283 Shares) and 7.1A (6,980,717 Shares). The issue of 7,500,000 Placement Options will be subject to shareholder approval at a General Meeting proposed to be held in late August 2024.
Sixty Two Capital Pty Ltd acted as the Lead Managers to the Placement.
Click here for the full ASX Release
This article includes content from Balkan Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
How to Invest in Lithium Stocks and the Lithium Market (Updated 2024)
Despite the current low price environment, the long-term demand for battery metals is robust and offers opportunity for those interested in lithium stocks.
Seasoned metals investors who want to look beyond gold and silver are getting involved, while new investors are being drawn into the space by expanding battery manufacturing capability and lithium supply deals between auto makers and lithium producers.
Whatever the reason, it’s important to get familiar with the lithium market before investing in lithium stocks. Here's a brief overview of some of the basics, including supply and demand, prices and companies.
Where is lithium mined?
Lithium is found globally in hard-rock deposits, evaporated brines and clay deposits. There’s some contention as to which type of deposit is superior, but generally there are tradeoffs for any option.
The world’s largest hard-rock mine is the Greenbushes mine in Australia, and the bulk of the world’s lithium brine production comes from salars in Chile and Argentina. Most large lithium reserves are in Chile, and the prolific “Lithium Triangle” spans Chile, Argentina and Bolivia. Australia was once again the world’s largest lithium producer in 2023, followed by Chile and China.
What's the difference between battery-grade and technical-grade lithium?
Technical-grade lithium is used in ceramics, glass and other industrial applications, while battery-grade lithium carbonate and lithium hydroxide, which are much more expensive, are used to make lithium-ion batteries. These lithium products can also be used for technical applications in a pinch. Those aren't the only classifications, though. Pharmaceutical grade lithium carbonate is used in medicine.
How is lithium priced?
Getting a look at lithium prices isn’t easy, and that can make it difficult for investors who are looking to assess the viability of a given project. Pricing in the lithium industry has always been opaque due to the dominance of a few major producers, with investors having very little pricing information they can trust.
Simon Moores of Benchmark Mineral Intelligence has emphasized that pricing can be a difficult concept for investors to grasp.
“The biggest myth surrounding pricing is, ‘What is the price of lithium?’ Because there is no one price,” he said. “The newcomers want one lithium price, but the existing market has a wide range of lithium chemicals and then grades within a specification."
There are also distinct prices for lithium on markets in different regions, meaning lithium hydroxide in China will be priced slightly different than in Europe.
For those looking to invest in lithium who want to learn about lithium prices, it's best to read reports on lithium price trends from experts to help you understand what is happening in the market.
What factors drive the lithium market?
A major driver for the lithium market is its use in the lithium-ion batteries that power electric vehicles, smart phones and laptops.
Tesla (NASDAQ:TSLA) was the first carmaker to stoke excitement in the lithium space. The company’s Nevada-based gigafactory is what initially began to drive enthusiasm, but the company now has about half a dozen of these facilities.
Tesla is also not the only firm with megafactory ambitions. While China is currently leading the world in battery factory capacity, its global dominance is shrinking as other regions seek to build out their own battery manufacturing sectors. According to Benchmark analyst Evan Hartley, “China holds close to 70 [percent] of the battery cell pipeline capacity, which has led to significant policy movements in both Europe and North America in order to reduce reliance on Chinese cells for the EV transition.”
In Europe, Germany leads the way. The German government has pledged nearly a billion euros to support Swedish battery maker NorthVolt in constructing an EV battery plant in the country which is expected to begin production in 2026. In the UK, the government is investing 500 million pounds in subsidies for Tata Motors and Jaguar Land Rover to build a gigafactory in Southwest England. Set to be one of the largest in Europe, by the early 2030s, the gigafactory “will contribute almost half of the projected battery manufacturing capacity required for the UK automotive sector,” reported the BBC.
In the US, the Biden administration's Inflation Reduction Act, which was signed into law in mid-2022, is investing US$369 billion in climate action and energy, including EVs and EV infrastructure. Speaking at the Benchmark World Tour in January 2024, Terry Scarrott, principal consultant at Benchmark, emphasized that the US is now on track to surpass Europe in terms of installed capacity for battery cells by 2030.
In short, going forward the world will continue to need a lot of lithium. However, prices have been trading at two-year record lows and the lithium market is expected to remain oversupplied throughout 2024. This has driven key Australian producers to curb production rates and/or expansion plans, including Pilbara Minerals (ASX:PLS,OTC Pink:PILBF), Arcadium Lithium (ASX:LTM) and Mineral Resources (ASX:MIN).
Even production at the world’s largest lithium mine, Greenbushes in Australia, is facing cutbacks for this year as the operation’s JV partners — Tianqi Lithium (SZSE:002466) IGO (ASX:IGO,OTC Pink:IPGDF) and Albemarle (NYSE:ALB) — seek to rebalance the market. As reported by S&P Global, Australia’s lithium producers believe their efforts will translate into a rebound in lithium prices down the road.
How to invest in lithium stocks?
So what's the best way to invest in lithium? How should investors interested in lithium stocks begin? To start, it helps to understand the lithium production landscape.
For a long time, most lithium was produced by an oligopoly of lithium producers often referred to as the “Big 3”: Albemarle, SQM (NYSE:SQM) and FMC. Rockwood Holdings was on that list too before it was acquired by Albemarle several years ago.
However, the list of the world’s top lithium-mining companies has changed in recent years. The companies mentioned above still produce the majority of the world’s lithium, but China accounts for a large chunk of output as well. As already discussed, the Asian nation was the third largest lithium-producing country in 2023.
But the biggest producer continues to be Australia, where up-and-comer Liontown Resources (ASX:LTR,OTC Pink:LINRF) is set to bring its Kathleen Valley deposit in Western Australia into production in mid-2024. The mine’s operations will include a plant with a planned lithium production capacity of 3 million metric tons per year.
In other words, lithium investors need to be keeping an eye on lithium-mining companies in Australia and other jurisdictions in addition to the New York-listed chemical companies that produce the material.
Of course, smaller lithium stocks are worth watching too — to find out which ones are currently thriving, check out our top lithium stocks article. You can also check out our articles on the biggest Australian stocks, top performing Australian lithium stocks, and top Canadian lithium stocks.
This is an updated version of article originally published by the Investing News Network in 2015.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
eWaste: From Recycling Challenge to Emerging Opportunity
Governments worldwide, federally and regionally are mandating environmental protection policies aimed at lowering carbon dioxide (CO2) emissions. Part of this is tied to finding opportunities in eWaste recycling, which provides added supply to the ever popular battery metals.
With the advent of low-carbon technologies aimed at reducing environmental impact, problems associated with climate change are starting to be addressed. Electric vehicles (EVs) — complemented by innovative energy storage units that use battery metals — are one solution to rising CO2 and greenhouse gas (GHG) levels in the atmosphere.
When the EV market began to emerge, it raised an issue that auto manufacturers and governments alike had not adequately addressed: where do spent lithium-ion batteries go?
Despite being focused on energy conservation and efficiency, the EV industry and regulations around it have mostly ignored the implications of not recycling EV batteries, categorized as eWaste. This particular challenge opens the door for a budding industry targeting opportunities in eWaste recycling.
Governing policies setting new environmental standards
EVs are proof that fueling transportation through electricity rather than burning fossil fuels can significantly reduce emissions of GHG; up to 50 percent less GHGs are emitted from EVs compared to traditional transportation.
This shift away from fossil fuels has been met with resounding praise for the significant efforts governments and automakers have implemented to reduce global GHG emissions. Take, for instance, the British and French governments, which in July 2017 committed to banning the sale of petrol- and diesel-powered cars by 2040, while carmaker Volvo (STO:VOLV-B) is working towards its goal of becoming a fully electric car maker by 2030.
While some countries are committing to fully banning combustion engines, others have comprehensive policies outlining climate change actions related specifically to CO2 emissions. Under the Paris Agreement, Canada has committed to reducing GHG emissions by 30 percent below 2005 levels by 2030. The Canadian government has also committed to restricting new light vehicle purchases to only zero-emission vehicles by 2035.
In the US, the Biden administration has issued new regulation that effectively ensures that the majority of all new passenger vehicles and light trucks sold in the US are either hybrid or electric by 2032, by instituting new tailpipe pollution limits.
Governments worldwide mandating policies and enforcing compliance aimed at the billion-dollar auto industry is one of the main driving forces behind the forecasted dramatic growth of the EV market.
The environmental landscape
While the increase in EVs marks a promising environmental milestone, both automakers and lawmakers will now have to address the lifecycle of EV batteries, which often make their way into landfills.
The EV battery typically has a lifespan of five to 10 years. An estimated 1.2 million batteries from EVs will reach their end-of-life by 2030, globally, according to a report from the International Council on Clean Transportation.
This forecasted increase in spent EV batteries poses a currently unrecognized environmental risk. Though there is existing infrastructure in place in Canada, Mexico, China and the US to collect, transport and recycle EOL EV batteries, there are currently only a few companies that have the technology and capacity to recycle EV battery metals.
Recycling lithium brings a unique set of challenges that, if not carefully mitigated in time (now) for the EV revolution, could result in drastic environmental consequences. Today most EV battery recycling efforts use smelting, which recovers only part of the cobalt and none of the lithium. Additionally, cobalt is recovered as a crude metal that can be used for alloying, but requires further refining for use in batteries. The remaining unrecovered cobalt and lithium is considered a hazardous waste material.
Because of the impressive increase in EVs as one solution to reducing GHGs, combating the resulting decrease in supply and further demand, as well as recovering and recycling the critical metals needed, has become a critical element to the entire EV lifecycle. To reduce CO2 levels and lower GHGs, both EVs and a full closed-loop lifecycle that incorporates eWaste recycling are needed. The by-product of the EV revolution has generated a significant opportunity in waste-management sectors.
The emerging eWaste market
As the EV market takes off and government agencies begin to realize the extent of the problem posed by spent batteries, jurisdictions across the world are starting to introduce legislation that challenges the EV and battery manufacturers to address battery EOL. The European Union's new Batteries Regulation, which took effect February 18, 2024, requires that new batteries must contain a specified proportion of recycled materials beginning in 2031.
RecycLiCo (TSXV:AMY;OTC:AMYZF) is an early-mover in EV battery recycling. Its patented process is capable of recovering up to 99 percent of cathode metals from battery waste and upcycles them into high-purity, battery-ready materials.
Governments such as China and the EU are starting to implement legislation that would make auto manufacturers responsible for recycling the lithium-ion batteries in the EVs they produce.
“Governments will do something, they are not going to permit electric car batteries to end up in landfills,” remarked Jim Greenberger from NAAT Batt International.
Some of the first large-scale recycling facilities are already underway. In March 2018, the Chinese government introduced the first recycling programs in four of its major regions. Chinese car manufacturers are responsible for the collection and recycling of EV lithium-ion batteries. The government is pushing EV manufacturers to inherit responsibility, and will contribute by providing policy supports and industrial funds for the trial operations. The Chinese government understands the excessive demand for lithium could mean a growing source of pollution, and is taking action now.
Though the legislation’s driving factor is environmental protection, the move also combats the rising costs and potential supply and demand concerns of EV battery materials, such as lithium and cobalt.
Federal governments around the world are starting to adopt similar legislation to comply with the Paris Agreement and national environmental standards.
The takeaway
As EV and battery production continues to grow on a global scale, eWaste is positioned as an emerging industry. The switch to EVs has opened up the potential for a notable market targeting EV battery recycling. As a result, companies are entering the market with sophisticated recycling technologies aimed at solving the EV battery recycling challenge while also capitalizing on the booming EV market.
As these companies look to enter into partnerships with battery and EV manufacturers across the globe, helping them to become environmentally compliant, there is an opportunity for investors to see positive results from an industry supported by strong government action.
This INNSpired article is sponsored by RecycLiCo Battery Materials (TSXV:AMY,OTC:AMYZF,FSE:2AM). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by RecycLiCo Battery Materialsin order to help investors learn more about the company. RecycLiCo Battery Materials is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with RecycLiCo Battery Materialsand seek advice from a qualified investment advisor.
CleanTech Lithium
Overview
CleanTech Lithium (AIM:CTL,FWB:T2N,OTC:CTLHF) is a resource exploration and development company with four lithium assets with an estimated 2.72 million tons (Mt) of lithium carbonate equivalent (LCE) in Chile, a world-renowned mining-friendly jurisdiction. The company aims to be a leading supplier of ‘green lithium’ to the electric vehicle (EV) market, leveraging direct lithium extraction (DLE) – a low-impact, low-carbon and low-water method of extracting lithium from brine.
Lithium demand is soaring as a result of a rapidly expanding EV market. One study estimates the world needs 2 billion EVs on the road to meet global net-zero goals. Yet, the gap between supply and demand continues to widen. As the world races to secure new supplies of the critical mineral, Chile has emerged as an ideal investment jurisdiction with mining-friendly regulations and a skilled local workforce to drive towards a clean green economy. Chile is already the biggest supplier of copper and second largest supplier of lithium.
With an experienced team in natural resources, CleanTech Lithium holds itself accountable to a responsible ESG-led approach, a critical advantage for governments and major car manufacturers looking to secure a cleaner supply chain.
Laguna Verde is at Pre-Feasibility Study stage, which is due to be delivered by Q4 2024. The project is targeted to be in ramp up production from 2027. Laguna Verde has a JORC resource estimate of 1.8 Mt of lithium carbonate equivalent (LCE) while Viento Andino boasts 0.92 Mt LCE, each supporting 20,000 tons per annum (tpa) production with a 30-year and 12-year mine life, respectively. The latest drilling programme at Laguna Verde finished in June 2024, results from which will be used to convert resources into reserves.
The lead project, Laguna Verde, will be developed first, after which Veinto Andino will follow suit using the design and experience gained from Laguna Verde, as the company works towards its goal of becoming a significant green lithium producer serving the EV market.
CleanTech Lithium’s pilot DLE plant in Copiapó was commissioned in the first quarter of 2024. The plant will process brine from both Laguna Verde and Viento Andino to produce lithium chloride eluate, which will then be converted into battery-grade lithium downstream through a third-party partner.
The Company is carrying out the necessary Environmental Impact Assessments in partnership with the local communities. The indigenous communities will provide valuable data that will be in included in the assessments. The company also has two prospective exploration projects.
Llamara project is a greenfield asset and in the Antofagasta region and is around 600 kilometers north of Laguna Verde and Veinto Andino. The project is located in the Pampa del Tamarugal basin, one of the largest basins in the Lithium Triangle.
Salar de Atacama/Arenas Blancas comprises 140 licenses covering 377 sq km in the Salar de Atacama basin, one of the leading lithium-producing regions in the world with proven mineable deposits of 9.2 Mt.
CleanTech Lithium is committed to an ESG-led approach to its strategy and supporting its downstream partners looking to secure a cleaner supply chain. In line with this, the company plans to use renewable energy and the eco-friendly DLE process across its projects. DLE is considered an efficient option for lithium brine extraction that makes the least environmental impact, with no use of evaporation ponds, no carbon-intensive processes and reduced levels of water consumption. In recognition, Chile’s government plans to prioritize DLE for all new lithium projects in the country.
CTL has a DLE Pilot Plant which is located in Copiapó with the capacity to produce up to 1 tonne per month of lithium carbonate. The company recently sent 24m3 batches of concentrated eluate to North America for further downstream processing. This will produce battery-grade lithium in the coming weeks and months. The company will share with potential customers across car and battery manufacturers.
CTL’s experienced management team, with expertise throughout the natural resources industry, leads the company towards its goal of producing green lithium for the EV market. Expertise includes geology, lithium extraction engineering and corporate administration.
Company Highlights
- CleanTech Lithium is a lithium exploration and development company with four notable lithium projects in Chile and a combined total resource of 2.72 million tonnes JORC estimate of lithium carbonate equivalent.
- The company leverages direct lithium extraction (DLE), an efficient method for extracting lithium brine that minimizes environmental impact and reduces production time and costs, resulting in high-quality, battery-grade lithium
- The company’s DLE pilot plant in Copiapó, Chile has commenced operation and started producing highly concentrated to be converted into battery-grade lithium for car and battery manufacturers to test and verify. The pilot plant can produce up to 1 tonne per month of lithium carbonate.
- CleanTech Lithium’s flagship projects, Laguna Verde and Viento Andino, are located near existing power sources and established transport infrastructure that can support the scalability of each project.
- The company also has two greenfield exploration projects in the region: Llamara and Salar de Atacama.
- The board consists of the former CEO of Collahuasi, the largest copper mine in the world, having held senior roles at Rio Tinto and BHP. In-country experience developing major commercial projects runs through-out the team.
- CTL’s operations are underpinned by an established ESG-focused approach - a critical priority for governments introducing regulations that require a cleaner supply chain to reach net-zero targets.
- The Company aims to become a leading supplier of ‘green’ lithium to the EV market through environmentally and socially sound practices across its assets and corporate culture.
Key Projects
Laguna Verde Lithium Project
217 sq km and features a sq km hypersaline lake at the low point of the basin with a large sub-surface aquifer ideal for DLE. Laguna Verde is the company’s most advanced asset,
Project Highlights:
- Prolific JORC-compliant Resource Estimate: As of July 2023, the asset has a JORC-compliant resource estimate of 1.8 Mt of LCE at a grade of 200 mg/L lithium.
- Environmentally Friendly Extraction: The company’s asset is amenable to DLE. Instead of sending lithium brine to evaporation ponds, DLE uses a unique process where resin extracts lithium from brine, and then re-injects the brine back into the aquifer, with minimal depletion of the resources. The DLE process reduces the impact on environment, water consumption levels and production time compared with evaporation ponds and hard-rock mining methods.
- DLE Pilot Plant: The pilot DLE plant in Copiapo was commissioned in the first quarter of 2024, and will process brine from both Laguna Verde and Viento Andino to produce lithium chloride eluate, which will then be converted into battery-grade lithium downstream through a third-party partner.
- Scoping Study: Scoping study completed in January 2023 indicated a production of 20,000 tons per annum LCE and an operational life of 30 years. Highlights of the study also includes:
- Total revenues of US$6.3 billion
- IRR of 45.1 percent and post-tax NPV8 of US$1.8 billion
- Net cash flow of US$215 million
Viento Andino Lithium Project
CleanTech Lithium’s second-most advanced asset covers 127 square kilometers and is located within 100 km of Laguna Verde, with a current resource estimate of 0.92 Mt of LCE, including an indicated resource of 0.44 Mt LCE. The company’s planned second drill campaign aims to extend known deposits further.
Project Highlights:
- 2022 Lithium Discovery: Recently completed brine samples from the initial drill campaign indicate an average lithium grade of 305 mg/L.
- JORC-compliant Estimate: The inferred resource estimate was recently upgraded from 0.5 Mt to 0.92 Mt of LCE at an average grade of 207 mg/L lithium, which now includes 0.44 million tonnes at an average grade of 221 mg/L lithium in the indicated category.
- Scoping Study: A scoping study was completed in September 2023 indicating a production of up to 20,000 tons per annum LCE for an operational life of more than 12 years. Other highlights include:
- Net revenues of US$2.5 billion
- IRR of 43.5 percent and post-tax NPV 8 of US$1.1 billion
- Additional Drilling: Once drilling at Laguna Verde is completed in 2024, CleanTech Lithium plans to commence further drilling at Viento Andino for a potential resource upgrade.
Llamara Lithium Project
The Llamara project is one of the largest greenfield basins in the Lithium Triangle, covering 605 square kilometers in the Pampa del Tamarugal, one of the largest basins in the Lithium Triangle. Historical exploration results indicate blue-sky potential, prompting the company to pursue additional exploration.
Project Highlights:
- Promising Historical Exploration: The asset has never been drilled; however, salt crust surface samples indicate up to 3,100 parts per million lithium. Additionally, historical geophysics lines indicate a large hypersaline aquifer. Both of these exploration results indicate potential for significant future discoveries.
- Close Proximity to Existing Operations: The Llamara project is near other known deposits:
- Atacama (SQM / Abarmale): 18,100 square kilometers
- Hombre (Muerto Livent): 4,000 square kilometers
- Pampa del Tamarugal (CleanTech): 17,150 square kilometers
Arenas Blancas
The project comprises 140 licences covering 377 sq km in the Salar de Atacama basin, a known lithium region with proven mineable deposits of 9.2 Mt and home to two of the world’s leading battery-grade lithium producers SQM and Albermarle. Following the granting of the exploration licences in 2024, the Cleantech Lithium is designing a work programme for the project
The Board
Steve Kesler - Executive Chairman and Interim CEO
Steve Kesler has 45 years of executive and board roles experience in the mining sector across all major capital markets including AIM. Direct lithium experience as CEO/director of European Lithium and Chile experience with Escondida and as the first CEO of Collahuasi, previously held senior roles at Rio Tinto and BHP.
Gordon Stein - Chief Financial Officer
Gordon Stein is a commercial CFO with over 30 years of expertise in the energy, natural resources and other sectors in both executive and non-executive director roles. As a chartered accountant, he has worked with start-ups to major companies, including board roles of six LSE companies.
Maha Daoudi - Independent Non-executive Director
Maha Daoudi has more than 20 years of experience holding several Board and senior-level positions across commodities, energy transition, finance and tech-related industries, including a senior role with leading commodity trader, Trafigura. Daoudi holds expertise in offtake agreements, developing international alliances and forming strategic partnerships.
Tommy McKeith - Independent Non-executive Director
Tommy McKeith is an experienced public company director and geologist with over 30 years of mining company leadership, corporate development, project development and exploration experience. He's held roles in an international mining company and across several ASX-listed mining companies. McKeith currently serves as non-executive director of Evolution Mining and as non-executive chairman of Arrow Minerals. Having worked in bulk, base and precious metals across numerous jurisdictions, including operations in Canada, Africa, South America and Australia, McKeith brings strategic insights to CTL with a strong focus on value creation.
Jonathan Morley-Kirk - Senior Independent Non-executive Director
Jonathan Morley-Kirk brings 30 years of experience, including 17 years in non-executive director roles with expertise in financial controls, audit, remuneration, capital raisings and taxation/structuring.
Lithium Brine’s Economic and Ecological Benefits Present Strong Case for Investors
From extraction to production, lithium brine deposits represent a significant competitive advantage for exploration and development companies. Compared to their hard-rock counterparts, lithium brine projects are regarded as lower-cash-cost operations with genuine scale, and are seen as more environmentally friendly deposits, largely owing to recent innovations in extraction technologies.
Combined with the right geographic characteristics and expertise, lithium brine projects are worth considering as an investment opportunity, especially if located in the USA due the US focus on the complete battery supply chain.
This is particularly true given the lithium market's recent focus on the geopolitics of supply and mounting production costs and declining lithium prices as well as a desire to capture the entire battery supply chain within one country. In fact, lower prices currently potentially create more upside for investors if they are considering counter cyclical investments, as the prevailing view is that lithium will be required for decades to come.
A critical resource for decarbonisation
As a key component in both rechargeable batteries and electric vehicles, lithium ranks among the most important resources in the world's pursuit of a more sustainable future.
A 2022 article from McKinsey & Company has predicted demand for the battery metal will reach between 3 to 4 million metric tons by 2030. The resource, notes McKinsey, is used in the production of nearly every single type of electric vehicle battery, as well as consumer electronics, energy storage and aerospace.
"Raw materials will be at the center of decarbonization efforts and electrification of the economy as we move from fossil fuels to wind and solar power generation, battery- and fuel-cell based electric vehicles and hydrogen production," the firm explains in another article. "No matter which decarbonization pathway we follow, there will be fundamental demand shifts — and these will change the metals and mining sector as we know it, creating new sources of value while shrinking others."
Although lithium supply still lags behind, McKinsey's outlook is optimistic. The organisation predicts that in addition to increasing the conventional lithium supply, the key to scaling the lithium industry to demand lies with direct lithium extraction (DLE). Through DLE, mining companies can simultaneously reduce production costs and decrease their environmental footprint.
By 2030, DLE lithium could account for more than 10 percent of supply, according to McKinsey.
Production potential of lithium brine resources
There are three primary types of lithium deposits — pegmatite, sedimentary and brine.
Pegmatitic lithium deposits, also known as hard-rock lithium deposits, are formed from coarse-grained, igneous magmatic rock. Lithium in these deposits is most commonly found in spodumene but can also occur in minerals such as lepidolite, petalite and amblygonite. Hard-rock lithium extraction is typically done via conventional open pit or underground mining.
Hard-rock lithium extraction tends to be quite expensive from an operating cost perspective. Typically, this is offset by the fact that hard-rock deposits have a higher concentration of the resource compared to other deposit types and usually require less capital to start operations. Unfortunately, the declining lithium price landscape, plummeting by more than 80 percent in 2023, makes hard-rock extraction less economically viable.
Sedimentary lithium represents something of a middle ground between pegmatitic lithium and lithium brine. Formed through the dissolution and gradual precipitation of lithium-bearing minerals in water, sedimentary lithium occurs in either lacustrine evaporates or clay deposits. Compared to pegmatitic lithium and lithium brine, sedimentary deposits are quite rare, accounting for only 8 percent of known lithium resources.
With that said, McDermitt Caldera — potentially the world's largest known lithium resource — primarily consists of lithium clay. Lithium Americas (TSX:LAC,NYSE:LAC) currently holds the largest deposit in the region, Thacker Pass, which contains roughly 13.7 million tons of lithium carbonate equivalent. Construction of a shallow open-pit mine and processing facility on the deposit began in March 2023. However, due to legislative and regulatory challenges, it is not yet known when the mine will become operational.
Lastly, lithium brine deposits represent roughly 66 percent of global lithium resources. Though they typically contain lower concentrations of lithium than both sedimentary and pegmatitic deposits, brine deposits also tend to be considerably larger. It also benefits from significantly lower production costs compared to other types of deposits.
Continental saline desert basins represent the most common type of lithium brine deposit, with the majority found in the salt flats of Chile, Tibet, Argentina and China. Abandoned oilfields and orphan wells represent another compelling source of lithium brines.
While other deposits typically require extensive drilling and sampling to develop a resource estimate, all that's required to assess a brine deposit are a relatively small number of drill holes with lithium brines with an appropriate grade and flow rate. Lithium brine projects also require far less land than other lithium extraction methods, when using modern direct lithium extraction technology.
Traditional lithium brine production pumps lithium-containing highly saline groundwater (brine) into large evaporation reservoirs, where it sits for up to a year, with water evaporating and concentrating the lithium and other salts. Direct lithium extraction, on the other hand, applies a specialised sorbent or bead, separating out the lithium and then returning the groundwater to its source. This is not only significantly more cost-effective, but it also requires around 95 percent less space.
The end result is a process that has minimal impact on the environment compared to other techniques. Once a brine deposit is depleted, the mining company can tear down its infrastructure and return the area almost entirely to its natural state. This is an important consideration for a resource so tied to sustainability.
Lithium brine assets to keep on your radar
Given the prominence of lithium brine assets and the sharp downturn in alternative lithium production methods, it should come as little surprise that there are numerous companies primed for commercial lithium brine production. Below, we've listed three of the most promising for investors to keep an eye on.
Arcadium Lithium (NYSE:ALTM,ASX:LTM)
Formed from a recent merger between Livent and Allkem, Arcadium Lithium is one of the biggest players in not just DLE, but lithium production as a whole. Prior to the merger, Livent had already been using its own form of DLE for several decades, with multiple holdings throughout Argentina. Allkem, meanwhile, owned and operated the world-class Olaroz lithium carbonate project in Argentina, as well as several spodumene projects in Canada and Australia.
The vertically integrated company began trading on the NYSE on January 4 of this year.
QX Resources (ASX:QXR)
Based in Australia, QX Resources' primary focus is on the exploration and development of battery minerals.
The company maintains several hard-rock lithium assets in Western Australia, a strategic nickel sulphide investment in Sweden and a highly prospective lithium brine asset in the US. The brine project, known as Liberty Lithium, covers approximately 25,300 acres in California.
Notable for being one of the few large brine projects in the US, Liberty contains an extensive lithium brine surface anomaly with elevated lithium results of up to 215 milligrams per litre. Drilling and geophysics have confirmed multiple aquifers, and show that the basin is large and deep, mirroring the geological setting of Albemarle's (NYSE:ALB) nearby Silver Peak mine. Potential drilling is planned to intersect deep lithium brines in the centre of the basin at higher grades.
Volt Lithium (TSXV:VLT,OTCQB:VLTLF)
Volt Lithium's most significant resource is the Rainbow Lake project. Situated in a depleted Alberta oilfield, the world-class deposit spans roughly 430,000 acres. The project also benefits from an extensive pre-existing infrastructure.
Late last year, Volt announced it had pioneered a new DLE technology capable of recovering up to 97 percent of lithium from oilfield brines with concentrations higher than 120 milligrams per litre — the precise concentration present in Rainbow Lake.
Investor takeaway
The sharp decline in lithium prices over the past year came as both a shock to investors and a blow to the economic viability of traditional hard-rock lithium deposits. Lithium brine projects offer a more economical and sustainable alternative, with projects operating at low costs and high margins. As such, mining companies with brine resources are well-positioned in the current market, representing a promising potential investment.
This INNSpired article is sponsored by QX Resources (ASX:QXR). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by QX Resources (ASX:QXR)in order to help investors learn more about the company. QX Resources (ASX:QXR) is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
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The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with QX Resources (ASX:QXR)and seek advice from a qualified investment advisor.
Atlantic Lithium
Overview
Atlantic Lithium Limited (AIM: ALL, ASX: A11,GSE: ALLGH, OTCQX:ALLIF) is an African-focused lithium exploration and development company advancing its flagship Ewoyaa Lithium project through to production as Ghana’s first lithium mine. Despite its long mining history, favourable regulatory climate and stable political backdrop, Ghana remains largely overlooked as an investment jurisdiction for battery metals. Situated on the West African coast, the country boasts a strong strategic location, between Europe, the Americas and Asia, to serve the global battery metals market. Ghana is also home to an abundance of mineral wealth, with c. 180,000 tonnes of estimated lithium resources.Atlantic Lithium intends to produce spodumene concentrate capable of conversion to lithium hydroxide and carbonate for use in electric vehicle batteries, helping drive the transition to decarbonisation.
A definitive feasibility study (DFS) released in June 2023 shows that considering the 35.3 million tons (Mt) @ 1.25 per cent lithium oxide JORC Mineral Resource Estimate, that the Company announced in February 2023, and conservative long-term concentrate pricing of US$1,410/t, FOB Ghana, Ewoyaa has demonstrable economic viability, low capital intensity and excellent profitability.
Through simple open-pit mining, three-stage crushing and conventional Dense Media Separation (DMS) processing, the DFS (also considering the fiscal terms agreed upon the grant of the Mining Lease for the Project in October 2023) outlines the production of 3.6 Mt of spodumene concentrate over a 12-year mine life, delivering US$6.6 billion life-of-mine revenues, a post-tax NPV8 of US$1.3 billion and an internal rate of return of 94 percent.
The project is expected to deliver nameplate production from its plant as early as 2026.
Project Funding
The development of the project is co-funded under an agreement with NASDAQ and ASX-listed Piedmont Lithium (ASX:PLL), with Piedmont expected to fund c. 70 percent of the US$185 million total development expenditure indicated by the DFS.
In accordance with the agreement, Piedmont has completed funding of US$25 million towards studies and exploration, and will sole fund an initial US$70 million, plus 50 percent of costs thereafter (shared 50:50 between Atlantic Lithium and Piedmont), towards the total development expenditure for the Project, as indicated by the DFS.
In return, Piedmont will receive 50 percent of the spodumene concentrate produced at Ewoyaa, providing a route to consumers through several major battery manufacturers, including Tesla.
The Minerals Income Investment Fund (MIIF), Ghana’s minerals sovereign wealth fund, has also agreed to invest a total of US$32.9 million in the company and at the project-level to expedite the development of the project.
Representing the first part of the Strategic Investment, MIIF completed a Subscription for US$5 million Atlantic Lithium shares in January 2024, to become a major strategic shareholder in the company.
Representing the second part of the Strategic Investment, MIIF has agreed to invest, subject to the company reaching a binding agreement with MIIF, US$27.9 million in the company's Ghanaian subsidiaries to acquire a 6 percent contributing interest in the project. The US$27.9 million project-level investment and the contributing interest are expected to take the form of funding for development, exploration and studies expenditure to support the advancement of the project.
In addition, Atlantic Lithium is in the final stages of a competitive offtake partnering process to secure funding for a portion of the remaining 50 percent available feedstock from Ewoyaa.
The objective of the process is to attract funding offers to sufficiently cover the Company's allocation of development expenditure for the Project, to expedite and de-risk the development of the Project, realise attractive terms for any offtake contracted and secure a well-credentialled partner that will support the company's and Ghana's objectives of supplying lithium into the global electric vehicle market.
The Company has indicated its preferred terms of up to 500,000t of spodumene concentrate to be contracted over a 3-5-year period, using a favourable market-based pricing mechanism, for a consideration of up to US$100 million in the form of a pre-payment arrangement, which is expected to sufficiently cover the Company’s allocation of development expenditure.
Ghana
Ghana is a well-established mining region with access to reliable, existing infrastructure and a significant mining workforce. There are currently 16 operating mines in the country.
Already the largest taxpayer and employer in Ghana’s Central Region, Atlantic Lithium is expected to provide direct employment to over 800 personnel at Ewoyaa and, through its community development fund, whereby 1 percent of profits will be allocated to local initiatives, will deliver long-lasting benefits to the region and Ghana.
Through its proven lithium discovery, exploration and evaluation methodologies, Atlantic Lithium has the potential to capitalise on its extensive exploration portfolio and deliver upon its objectives of becoming a leading producer of lithium in West Africa.
Company Highlights
- A lithium exploration and development company operating in West Africa, Atlantic Lithium is set to deliver its flagship Ewoyaa Lithium Project as Ghana’s first lithium-producing mine.
- The June 2023 Definitive Feasibility Study for the Project indicates the production of 3.6Mt of spodumene concentrate over a 12-year mine life (steady state production of 365,000 tonnes per annum), making it one of the largest mines by production capacity globally.
- The DFS confirms Ewoyaa as one of the lowest capital and operating cost hard rock lithium projects globally, with strong commercial viability and exceptional profitability potential.
- The Ewoyaa Lithium Project was awarded a Mining Lease in October 2023 and is co-funded under an agreement with Piedmont Lithium. Atlantic Lithium holds a portfolio of lithium projects within 509km2 and 774km2 of granted and under-application tenure across Ghana and Côte d'Ivoire respectively.
Key Assets
Ewoyaa
Atlantic Lithium's flagship Ewoyaa Lithium Project is situated within 110 kilometres of Takoradi Port and 100 kilometres of Accra, with access to excellent infrastructure and a skilled local workforce.
Atlantic Lithium was granted a Mining Lease in respect of the Project in October 2023. The Company is currently advancing the Project through the permitting process towards production.
Highlights:
- Promising DFS Results: Atlantic Lithium's DFS reaffirmed Ewoyaa as an industry-leading asset with low capital intensity and excellent profitability. Highlights include:
- Estimated 12-year life of mine, producing 3.6 Mt spodumene concentrate.
- 365 ktpa steady state production
- Average LOM EBITDA of US$316 million per annum
- NPV of US$1.3 billion
- Life-of-mine revenues of US$6.6 billion
- Modest $185 million development expenditure
- Robust US$675/t All in sustaining cost and US$377 C1 cash cost.
- Favourable Location: The project's starter pits are positioned within one kilometre of its processing plant. Additionally, Ewoyaa has access to reliable existing infrastructure, located within 800 metres from the N1 highway and adjacent to grid power.
- Promising Reserves: Ewoyaa's current mineral resource estimate is 35.3 Mt at 1.25 percent lithium oxide, with ore reserves of 25.6 Mt at 1.22 percent lithium oxide.
- Potential for Further Exploration: There remains significant exploration potential, with only 1 percent of Atlantic Lithium's total tenure having been drilled to date.
- Strong Partnerships: Atlantic Lithium has a 50-percent offtake deal with Piedmont Lithium, which itself has offtake agreements with both Tesla and LG Chem, and has an agreed with Ghana’s Minerals Income Investment Fund to expedite the development of the Project.
- Positive Presence: Atlantic Lithium will generate significant economic benefits for the region. Once operational, the project is expected to employ over 800 personnel and deliver approximately US$4.9 billion in value to Ghana, including through taxes, royalties, employment and local procurement.
Côte d'Ivoire
Atlantic Lithium currently has two applications pending for an area of roughly 774 square kilometres in the West African country of Côte d'Ivoire. The underexplored yet highly prospective region is known to be underlain by prolific birimian greenstone belts, characterised by fractionated granitic intrusive centres with lithium and colombite-tantalum occurrences and outcropping pegmatites. The area is also incredibly well-served, with extensive road infrastructure, well-established cellular network and high-voltage transmission line within 100 kilometres of the country's economic capital, Abidjan.
Management Team
Neil Herbert - Executive Chairman
Neil Herbert is a fellow of the Association of Chartered Certified Accountants and has over 30 years of experience in finance. He has been involved in growing mining and oil and gas companies, both as an executive and as an investor, for over 25 years.
Until May 2013, he was co-chairman and managing director of AIM-quoted Polo Resources, a natural resources investment company. Prior to this, Herbert was a director of resource investment company Galahad Gold, after which he became finance director of its most successful investment, the start-up uranium company UraMin, from 2005 to 2007. During this period, he worked to float the company on AIM and the Toronto Stock Exchange in 2006, raise US$400 million in equity financing and negotiate the sale of the group for US$2.5 billion.
Herbert has held board positions at a number of resource companies where he has been involved in managing numerous acquisitions, disposals, stock market listings and fundraisings. He holds a joint honours degree in economics and economic history from the University of Leicester.
Keith Muller - Chief Executive Officer
Keith Muller is a mining engineer with over 20 years of operational and leadership experience across domestic and international mining, including in the lithium sector. He has a strong operational background in hard rock lithium mining and processing, particularly in DMS spodumene processing.
Before joining Atlantic Lithium, he held roles as both a business leader and general manager at Allkem, where he worked on the Mt Cattlin lithium mine in Western Australia and, prior to that, Muller served as operations manager and senior mining engineer at Simec.
Muller holds a Master of Mining Engineering from the University of New South Wales and a Bachelor of Engineering from the University of Pretoria. He is also a member of the Australian Institute of Mining and Metallurgy, the Board of Professional Engineers of Queensland, and the Engineering Council of South Africa.
Amanda Harsas - Finance Director and Company Secretary
Amanda Harsas is a senior finance executive with a demonstrable track record and over 25 years’ experience in strategic finance, business transformation, commercial finance, customer and supplier negotiations and capital management. Prior to joining Atlantic Lithium, she worked in several sectors, including healthcare, insurance, retail and professional services, across Asia, Europe and the U.S. Harsas holds a Bachelor of Business from the University of Technology, Sydney and is a member of Chartered Accountants Australia and New Zealand and the Australian Institute of Company Directors.
Kieran Daly - Non-executive Director
Kieran Daly is the executive of Growth and Strategic Development at Assore. He holds a BSc Mining Engineering from Camborne School of Mines (1991) and an MBA from Wits Business School (2001) and worked in investment banking/equity research for more than 10 years at UBS, Macquarie and Investec, prior to joining Assore in 2018.
Daly spent the first 15 years of his mining career at Anglo American’s coal division (Anglo Coal) in a number of international roles including operations, sales and marketing, strategy and business development. Among his key roles were leading and developing Anglo Coal's marketing efforts in Asia and to steel industry customers globally. He was also the Global Head of Strategy for Anglo Coal immediately prior to leaving Anglo in 2007.
Christelle Van Der Merwe - Non-executive Director
Christelle Van Der Merwe is a mining geologist responsible for the mining-related geology and resources of Assore’s subsidiary companies (comprising the pyrophyllite and chromite mines) and is also concerned with the company's iron and manganese mines. She has been the Assore group geologist since 2013 and is involved with the strategic and resource investment decisions of the company. Van Der Merwe is a member of SACNASP and the GSSA.
Edward Nana Yaw Koranteng - Non-executive Director
Edward Koranteng is a lawyer and an experienced corporate and investment banker with over 23 years of experience. He has served as the chief executive officer of the Minerals Income Investment Fund (MIIF), Ghana’s sovereign minerals wealth fund, since 2021.
Prior to joining MIIF, Koranteng held the role of Business Head for East, Central and Southern Africa for Ghana International Bank plc ("GHIB"), where he was responsible for GHIB's energy and mining portfolio. He also worked with the Chase Bank Group (Kenya), now SBM Bank of Mauritius, as group head for energy, oil, gas and mining. Koranteng currently sits on the boards of Asante Gold Corporation, MIIF and Glico General Insurance Ltd.
Koranteng holds a BA (Hons) from the University of Ghana, a Master of Laws in International Banking and Finance from the University of Leeds in the UK, a Postgraduate Diploma from BPP Law School in the UK and the Ghana School of Law. He has practiced as a barrister in both the UK and Ghana and holds various executive and postgraduate certifications, including in oil, gas and mining from the Blavatnik School of Government, University of Oxford in the UK.
Jonathan Henry - Independent Non-executive Director
Jonathan Henry is an experienced Non-Executive Director, having held various leadership and board roles for nearly two decades. Henry has significant expertise working across capital markets, business development, project financing, key stakeholder engagement, and the reporting and implementation of ESG-focused initiatives. Henry has a wealth of experience projects towards production and commercialisation to deliver shareholder value.
Henry also serves as non-executive chair of Toronto Venture Exchange-listed (TSX-V) Giyani Metals Corporation, a battery development company advancing its portfolio of manganese oxide projects in Botswana, having previously held the role of executive chair. His previous roles include as executive chair and non-executive director at Ormonde Mining plc, non-executive director at Ashanti Gold Corporation, president, director and chief executive officer at Gabriel Resources Limited and various roles, including chief executive officer and managing director, at Avocet Mining PLC. He holds a BA (Hons) in Natural Sciences from Trinity College, Dublin.
Michael Bourguignon – Head of Capital Projects
Michael Bourguignon is a distinguished project management professional with a rich history of leading significant initiatives in the mining and energy sectors. Most recently, he served as the COO at Evolution Energy Minerals in Tanzania, where he managed the optimisation and update of the Definitive Feasibility Study, managed the Front-End Engineering Design package, and oversaw the completion of the Relocation Action Plan and other community-related works.
Prior to this, Bourguignon worked with Rio Tinto in Australia as a consulting construction manager, as well as Glencore’s Mopani Copper Mines in Zambia, where he was the project director for the Mopani Synclinorium Concentrator, and Syrah’s Balama Graphite Mine in Mozambique, where he was project director. He has also previously worked in Ghana and Cote d’Ivoire with Perseus Mining.
Bourguignon holds an MBA from Murdoch University and is a member of the Australian Institute of Project Management.
Andrew Henry – General Manager, Commercial and Finance
Andrew Henry is an accomplished General Manager with over a decade’s experience in the operational mining sector, specialising in strategy, planning and analysis, contracts, large-scale project development and site operations.
Before joining Atlantic Lithium, Henry held the role of commercial manager at global lithium chemicals company Allkem and, prior to that, he spent over four years with major gold mining company Newcrest Mining.
Henry holds a Bachelor of Commerce from the University of South Australia and is a member of CPA Australia.
Ahmed-Salim Adam – General Manager, Operations
Ahmed-Salim Adam is an experienced mining general manager with over 15 years of experience leading various large-scale projects in Ghana across all stages of mine development, production, and closure, with a focus on safety and sustainability.
Adam has previously held a number of leadership roles, including as senior consultant of Metallurgy at GEOMAN Consult Ltd, as a director for FGR Bogoso Prestea Ltd’s Refractory Project and as general manager at Golden Star Resources Ltd.
He holds a MPhil Minerals Engineering and a Bachelor of Science (Hons) in Mineral Engineering, both from the University of Mines and Technology, Ghana. He is also a member of The Institute of Materials, Minerals and Mining (IOM3) in the United Kingdom and the Australasian Institute of Mining and Metallurgy (AusIMM) in Australia.
Simone Horsfall - General Manager, People
Simone Horsfall joins Atlantic Lithium as General Manager, People with over 25 years of experience working across a broad range of industries, with a focus on the mining sector. Previously, Horsfall spent over a decade at AngloGold Ashanti Australia as human resources manager and, more recently, at 29Metals as group manager of human resources.
Horsfall holds a diploma in Human Resource Management, a university certificate in Psychology from Edith Cowan University, Sydney, and a post-graduate diploma in Human Resources from Deakin University.
Belinda Gethin – General Manager, Corporate Finance and Company Secretary
Belinda assumed the role of general manager, corporate - finance and company secretary in January 2024, having initially joined the company as financial reporting manager in June 2023. To her role at Atlantic Lithium, Gethin brings a wealth of experience in all aspects of statutory, financial and corporate reporting, including the preparation of financial statements and accounting for complex transactions. Before joining Atlantic Lithium, Gethin worked as the chief financial officer for Lumus Imaging and, prior to that, as the group reporting manager at Healius. Gethin is a chartered accountant and holds a Bachelor of Commerce from UNSW in Sydney, Australia.
Iwan Williams – General Manager, Exploration
Iwan Williams is an exploration geologist with over 20 years' experience across a broad range of commodities, principally iron ore, manganese, gold, copper (porphyry and sed. hosted), PGE's, nickel and other base metals, as well as chromitite, phosphates, coal and diamond.
Williams has extensive southern and west African experience and has worked in Central and South America. His experience includes all aspects of exploration management, project generation, opportunity reviews, due diligence and mine geology. He has extensive studies experience having participated in the delivery of multiple project studies including resource, mine design criteria, baseline environmental and social studies and metallurgical test-work programmes. He is very familiar with working in Africa having spent 23 years of his 28-year geological career in Africa. Williams is a graduate of the University of Liverpool.
Abdul Razak – Exploration Manager, Ghana
Abdul Razak has extensive exploration, resource evaluation and project management experience throughout West Africa with a strong focus on data-rich environments. He has extensive gold experience having worked throughout Ghana with AngloGold Ashanti, Goldfields Ghana, Perseus and Golden Star, as well as international exploration and resource evaluation experience in Burkina Faso, Liberia, Ivory Coast, Republic of Congo, Nigeria and Guinea.
Razak is an integral member of the team, managing all site activities including drilling, laboratory, local teams, geotech and hydro, community consultations and stakeholder engagements and was instrumental in establishment of the current development team and defining Ghana’s maiden lithium resource estimate.
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