Piedmont Lithium: Updated Scoping Study Improves Project Economics

Piedmont Lithium (ASX:PLL) is pleased to report the results of the company’s updated Scoping Study for its vertically-integrated Piedmont Lithium project located within the Carolina Tin-Spodumene Belt in North Carolina, USA. The project includes a lithium hydroxide chemical plantsupplied with spodumene concentrate from an open pit mine and concentrator.

As quoted in the press release:

• Integrated project to produce 22,700 tonnes per year of lithium hydroxide

• Initial 13-year mine life with 2 years of spodumene concentrate sales and 11 years of integrated operations

• Staged development to minimise up-front capital requirements and equity dilution

  • Stage 1 initial capex of US$109mm for the Mine/Concentrator and by-product circuits (excluding contingency)
  • Stage 2 capex for Chemical Plant funded largely by internal cash flow

• Estimated 1st quartile spodumene concentrate costs of US$193/t and lithium hydroxide costs of US$3,112/t, both net of by-product credits and inclusive of royalties

• Conventional technology selection in all project aspects

• Steady-state annual EBITDA of US$225-245mm and after-tax cash flow of US$180-190mm

• Estimated NPV8% of US$888mm and after-tax IRR of 46% with ~2-year payback

• Potential mine and project life extension provide the opportunity for further economic upside

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