The study estimates a net present value at a 10 percent discount of US$860 million and an internal rate of return of 42.3 percent — generating US$6 billion in gross revenue.
The report extends the project life to 30 years and the mine life to 19 years, with average production during the first decade estimated at 15,000 tonnes per year at a cost of US$5,443 per tonne.
Looking at the economics of the lithium-tin project, the study estimates a net present value at a 10 percent discount of US$860 million and an internal rate of return of 42.3 percent — generating US$6 billion in gross revenue.
“The PFS has confirmed San José as a long life, low-cost project that is essential to meet the European Commission’s goal to secure critical lithium chemicals that are imperative for the economic survival of their automotive industry,” Infinity Lithium Managing Director Ryan Parkin said in a statement.
There is currently no lithium extraction and conversion in Europe, but the region is looking to have a fully integrated lithium supply chain, from mining to the production of electric vehicles. According to the company, to reach this goal, by 2030 Europe will require in excess of 250,000 tonnes of lithium chemicals to be produced domestically.
“The European Commission has publicly stated that they are willing to support and provide capital to develop lithium production in Europe,” said Vincent Ledoux Pedailles, Infinity Lithium’s executive director. “The EU understands that it needs to support lithium production in Europe to de-risk its supply chain and protect its industries.”
San José requires a pre-production capital expenditure of US$267.9 million, excluding contingencies. According to the study, construction is set to take approximately 20 months from a financial investment decision to the commissioning stage.
The company updated the project’s mineral resource estimate for the project last year, with the total resource jumping from 92.2 million tonnes to 111.3 million tonnes across the indicated and inferred categories. The total resource sits at 0.28 percent lithium and 0.61 percent lithium oxide.
On Thursday (August 22), shares of Infinity Lithium jumped more than 6 percent in Sydney after the announcement, trading at AU$0.076 by 3:00 p.m. EDT. The company’s share price has increased more than 30 percent since the start of the year.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.