
June 28, 2023
Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, is pleased to announce its Definitive Feasibility Study (“DFS”) for the Ewoyaa Lithium Project (“Ewoyaa” or the “Project”) in Ghana, West Africa.
DFS HIGHLIGHTS:
- 3.6 million tonnes (“Mt”) spodumene concentrate production over 12-year Life of Mine (“LOM”).
- Exceptional Project economics: Post-tax Net Present Value (“NPV8”) of US$1.5bn with free cash flow of US$2.4bn from LOM revenues of US$6.6bn, Average LOM EBITDA of US$316 million per annum, Internal Rate of Return (“IRR”) of 105% and short payback of 19 months.
- C1 cash operating costs of US$377/t of concentrate Free-On-Board (“FOB”) Ghana Port, after by-product credits from conventional open cut mining operation; All in Sustaining Cost (“AISC”) of US$610/t.
- Modest capital cost estimate of US$185 million.
- Incorporates Modular DMS units to generate early cash flow and increased throughput from 2Mtpa to 2.7Mtpa:
- Modular DMS cash flow reduces mine build peak funding requirement; capex paid back prior to full completion of plant build; and
- DFS maintains low capital intensity of US$64/t of annualised throughput.
- Throughput increased by 35% following significant uplift in Ore Reserves to 25.6Mt @ 1.22% Li2O.
- Simple mineralogy enables simple flowsheet comprising integrated 3-stage crushing facility through conventional Dense Media Separation (“DMS”) processing, producing 6% (“SC6”) and 5.5% (“SC5.5”) concentrate (approx. 50:50 ratio) at 10mm top size crush.
- Additional 4.7Mt of secondary product anticipated as by-product from DMS concentrator, with average grade of 1.16% Li2O.
- DFS incorporates Mineral Resource Estimate1 (“MRE”) of 35.3Mt @ 1.25 Li2O and conservative LOM concentrate pricing of US$1,587/t, FOB Ghana Port.
- Project benefits from close proximity to operational infrastructure, low energy and water-intensity process flow sheet, proximity to potential off-takers and skilled Ghanaian workforce within surrounding communities; over 800 direct jobs to be created.
Commenting, Keith Muller, Chief Executive Officer of Atlantic Lithium, said: “The Definitive Feasibility study has reaffirmed the Ewoyaa Lithium Project’s impressive economic outcomes and profitability potential, providing improved confidence in Ewoyaa’s ability to become a significant, near-term producer of spodumene concentrate.
“Using conservative pricing, the DFS outlines 3.6Mt concentrate production over a 12-year mine life, delivering US$6.6bn Life of Mine revenues, a post-tax NPV8 of US$1.5bn and an Internal Rate of Return of 105%. The Study indicates payback within only 19 months and maintains a low capital intensity, further reinforcing Ewoyaa’s position among the leading pre-production hard rock lithium assets globally.
"The increase in capex from the PFS results from the inclusion of the Modular DMS units and the increased throughput of 2.7Mtpa. Early revenue generated by the Modular DMS units will reduce peak funding requirement for the mine build, strongly justifying these developments. Furthermore, this will provide a valuable opportunity to train national staff and engineer out any mining, materials handling or logistics bottlenecks ahead of large-scale operations commencing for a potentially quicker commissioning phase.
“The deployment of the Modular DMS units has been reallocated from Stage 2 to Stage 1 of the Project’s development. Stage 2 includes the evaluation of a Feldspar circuit, a by-product of the DMS process that we intend to supply to the local Ghanaian ceramics market, and a Flotation circuit, further enhancing the Project’s economics.
“Ewoyaa’s favourable mineralogy enables a simple flowsheet comprising a 3-stage crushing facility and Dense Media Separation processing from conventional, open pit mining to produce a spodumene concentrate proven suitable for carbonate, sulphide or hydroxide conversion. Due to its grade, the Project’s coastal location and against the backdrop of the global decarbonisation movement, demand from off-takers for product from Ewoyaa has been strong.
“The Project benefits from a low water and energy-intensive plant, close proximity to exceptional infrastructure, including adjacent grid power, as well as a skilled Ghanaian workforce within Ewoyaa’s supportive surrounding communities. These favourable characteristics underlie the viability of the Project.
“Understanding the role we can play, we are fully committed to the development of our host communities. This includes local investment via a community development fund, apportioning an equivalent of 1% of retained earnings to local initiatives, and the creation of employment opportunities. As we set our sights on first production, we firmly believe that Ewoyaa will deliver long-lasting benefits for the Central Region, to Ghana and to West Africa.”
Click here for the full ASX Release
This article includes content from Atlantic Lithium, 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.
Sign up to get your FREE
Atlantic Lithium Investor Kit
and hear about exciting investment opportunities.
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
The Conversation (0)
01 May
Atlantic Lithium
Sign up to get your FREE
Atlantic Lithium Investor Kit
and hear about exciting investment opportunities.
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Building Ghana’s first lithium mine
17 October
Successful A$4.5M Placement to Accelerate Battery, REE and Solar Panel Recycling Growth
Livium Ltd (ASX: LIT) (“Livium” or the “Company”) is pleased to announce it has received firm commitments from new and existing, institutional and sophisticated investors to raise $4.5m (“Placement”) before costs. HighlightsFirm commitments of A$4.5m received from institutional and sophisticated... Keep Reading...
15 October
7 Biggest Lithium-mining Companies in 2025
For a long time, most of the world's lithium was produced by an oligopoly of US-listed producers. However, the sector has transformed significantly in recent years.Interested investors should cast a wider net to look at global companies — in particular those listed in Australia and China, as... Keep Reading...
15 October
Livium Ltd (ASX: LIT) – Trading Halt
Trading in the securities of Livium Ltd (‘LIT’) will be halted at the request of LIT, pending the release of an announcement by LIT. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of: the commencement of normal trading on Friday, 17 October 2025; orthe... Keep Reading...
14 October
GM Takes US$1.6 Billion Hit on EV Realignment as US Policy Shift Clouds Market Outlook
General Motors (NYSE:GM) will take a US$1.6 billion charge tied to its electric vehicle (EV) production realignment as the federal government rolls back clean energy incentives and emissions standards.In a regulatory filing on Tuesday (October 14), GM said the charges include a US$1.2 billion... Keep Reading...
13 October
EUR Sells a Further 3.85 Million CRML Shares for US$50M (A$76M) to a US Institutional Investor
European Lithium Ltd (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company) is pleased to announce that Critical Metals Corp. (Nasdaq: CRML) in an off-market transaction has sold a further 3.85 million CRML shares to a single US institutional investor at US$13 per share (a 12%... Keep Reading...
12 October
Successful A$4.5m Two Tranche Placement
Green Technology Metals (GT1:AU) has announced Successful A$4.5m Two Tranche PlacementDownload the PDF here. Keep Reading...
Latest News
Sign up to get your FREE
Atlantic Lithium Investor Kit
and hear about exciting investment opportunities.
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Latest Press Releases
CSE Bulletin: MOC Eligibility Update
17 October
Related News
TOP STOCKS
American Battery4.030.24
Aion Therapeutic0.10-0.01
Cybin Corp2.140.00