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Tama-Atacama Brine-Clay Lithium Project PAM Enters the South American Lithium Triangle

Strategy: To secure additional Low-Cost Li supply for PAM’s mid-stream lithium chemical initiatives

Battery and critical metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to announce that it has entered into binding Memorandums of Understanding (MOUs) to assess a significant suite of lithium
projects situated in the Tarapaca and Antofagasta regions of the Atacama Desert in northern Chile. The projects, collectively known as the Tama-Atacama Lithium Project, are divided into six main areas and extend over 290km from north to south and encompass approximately 1400km2 of Exploration Concession applications and granted Exploration Concessions as shown in Figure 1.


HIGHLIGHTS
  • Pan Asia Metals (PAM) has entered into binding MOUs to acquire highly prospective lithium (Li) brine and clay projects in northern Chile
  • PAM is entering into a world-class district at an opportune time, securing projects that have the potential to be both large scale and low cost
  • The Tama-Atacama Lithium Project comprises six key project areas in northern Chile extending over 290km north to south and covering an area of approximately 1400km2
  • Based on well-established geology and work completed to date, the Project demonstrates strong potential for Li brine and Li in clay deposits hosted in the Pampa del Tamarugal basin in the northern part of the Atacama Desert
  • Project areas adhere to PAM’s requirement for high prospective projects which are easily accessible, close to all key infrastructure, with ample water supply
  • Significant lithium values and by-product/pathfinders identified in surface sampling of salt and clay layers
  • Highly elevated Li in surface samples with 57 of 185 samples >250ppm Li averaging 702ppm Li and ranging up to 2200ppm Li
  • Elevated boron, potassium and magnesium commonly associated with elevated Li
  • Geochemical signature of surface salt crusts and clays similar to that of Salar de Atacama
  • Projects have excellent infrastructure including major highway access via the Pan Americana 5 Highway, water (salt and fresh), solar power, nearby ports, airports and major logistics hubs
  • Located at an altitude of 800-1100 mASL in hyper-arid environment, with little to no rainfall and extreme evaporation
  • Vendor consortiums have extensive in-country experience in terms of permitting, exploration and evaluation
  • Vendors will continue to be engaged with PAM in Chile to assist with evaluating current projects and assessing target opportunities in the region
  • Drilling at PAM’s, and some other nearby third party projects, have identified brine and clay potential
  • Drilling conducted at the PAM’s Hilix project in 2008 by ASX-listed Lefroy Resources Limited encountered lithium rich clays from surface to around 30m below surface, Li mineralisation essentially remains open in all directions
  • Assay results include:

Pan Asia Metals Managing Director, Paul Lock, said: “The Tama-Atacama Lithium Project is the result of many, many hours of research and enquiry. The Project comes with an agreement with Jacob Rebek to be PAM’s Geological Advisor for Chile and Thomas Eggers to be PAM’s Consulting Country Manager for Chile. This was an important step to ensure that PAM is well represented and informed, and to ensure the Project progresses speedily.

We believe that much of the commentary about Chilean lithium policy is ill-informed and has served only to create an exploration application void for companies like PAM to take the advantage of, i.e. there is very little competition, which has enabled PAM to secure very high quality projects in a hotly contested region. If anything, policy developments in Chile can only be considered positive.

When we look at the global peer group, we see many lithium exploration projects underway, but we also see that many of these will be high cost, which is being demonstrated in actual operating results. As a result of the success of PAM’s midstream lithium chemical strategy to date, we are seeing a need for supply certainty in the medium to long term. Supply certainty is front of mind for PAM’s partners and our projects in southeast Asia can only supply so much feedstock – albeit it will be low cost. As a result, PAM embarked on a strategy to secure assets which are strategic and present potential for longer term higher volume low cost supply. The beauty of PAM’s Tama-Atacama Lithium Project, which in some respects is absolutely unique, is that it has all the hallmarks of a well situated, low cost project, i.e. all infrastructure is immediately available, the project is located in close proximity to large population centres with large port facilities, a commercial airport, a workforce, and a large water supply – being the ocean. Further, the Tama-Atacama Lithium Project is an all season project. All three salars we inhabit, being Salar Dolores, Pintados and Belavista, are at much lower elevations than any other lithium rich salars in the global lithium peer group. Therefore PAM is very well positioned for evaporation and water replacement operations – i.e. sea water to replace brine – and there is ample room for photovoltaics should DLE technologies start to prove economic, allowing the use of DLE with a low carbon footprint.

All in all, the Tama-Atacama Lithium Project positions PAM very well to create a large long term, low cost supply of lithium which is complimentary to PAM’s midstream lithium chemical processing aspirations in Southeast Asia and, with the right lithium chemical processing partners, also in Chile”.


Click here for the full ASX Release

This article includes content from Pan Asia Metals Limited, 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.

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SQM REPORTS EARNINGS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

Highlights


  • SQM reported total revenues for the nine months ended September 30, 2024 of US$3,455.0 million compared to total revenues of  US$6,155.9 million for the same period last year.

  • Net loss (1),(2) for the nine months ended September 30, 2024 of (US$524.5) million or (US$1.84) per share, compared to net income (2) of  US$1,809.5 million or US$6.33 per share for the same period last year.

  • Solid sales volumes in lithium, iodine, and fertilizer businesses.

  • SPN and Potassium businesses posted healthy growth showing market recovery.

  • Slight increase in iodine prices, due to strong market demand and limited supply.

  • First lithium sales from the SQM International lithium division.

SQM will hold a conference call to discuss these results on Wednesday, November 20, 2024 at 10:00am ET (12:00pm Chile time).

Participant Dial-In (Toll Free): 1-844-282-4852

Participant International Dial-In: 1-412-317-5626

Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=xdNdTppQ

SANTIAGO, Chile , Nov. 20, 2024 /PRNewswire/ -- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today net loss ( [1] ),(2)   for the nine months ended September 30, 2024 , of (US$524.5) million or (US$1.84) per share, compared to US$1,809.5 million or US$6.33 per share reported for the same period last year.

(PRNewsfoto/Sociedad Quimica y Minera de Chile, S.A. (SQM))

Gross profit (3) reached US$1,033.3 million (29.9% of revenues) for the nine months ended September 30, 2024 , lower than US$2,674.3 million (43.4% of revenues) recorded for the nine months ended September 30, 2023 . Revenues totaled US$3,455.0 million for the nine months ended September 30, 2024 , representing a decrease of 43.9% compared to US$6,155.9 million reported for the nine months ended September 30, 2023 .

The Company also announced net income for the third quarter of 2024 of US$131.4 million or US$0.46 per share, a decrease of 72.6% compared to US$479.4 million or US$1.68 per share for the third quarter of 2023. Gross profit for the third quarter of 2024 reached US$280.8 million , 62.7% lower than the US$753.6 million reported for the third quarter of 2023. Revenues totaled US$1,076.9 million for the third quarter of 2024, a decrease of 41.5% compared to US$1,840.3 million for the third quarter of 2023.

SQM's Chief Executive Officer, Ricardo Ramos , stated, "We are publishing our third quarter 2024 financial results with positive volume growth in almost all of our business lines compared to last year. Fertilizer markets have shown solid market dynamics with a market size recovery. Our Specialty Plant Nutrition volumes grew more than 20% year-on-year while our revenues in this business line increased close to 12%."

He continued, "Iodine demand continued to be strong, leading to an increase in our sales volumes and revenues compared to last year. Prices continued to move up slightly quarter over quarter since the beginning of this year and we have used part of our inventories to answer market needs."

Mr. Ramos further stated, "In lithium, we reported sales volumes of more than 51 thousand metric tons of lithium products, an 18% growth year-on-year, demonstrating strong demand in the market. As anticipated, prices during the third quarter continued their downward trend, with average realized prices 24% lower than the second quarter this year. Although demand continues to grow at a strong pace, mainly driven by strong EV sales growth in China , we continue to see the prices pressured by an oversupply that persists despite the curtailment announcement we have seen over the past few weeks."

Mr. Ramos closed by saying, "Our more than 30-year track record in the lithium market has proved that we have a long-term view in this business. Despite current market prices, we strongly believe in the lithium market and its fundamentals which are highly related to the clean energy transition. SQM is in a strong competitive position and well prepared to continue developing our projects in Chile and abroad to harvest the benefits of this transition."

About SQM

SQM is a global company that is listed on the New York Stock Exchange and the Santiago Stock Exchange (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A). SQM develops and produces diverse products for several industries essential for human progress, such as health, nutrition, renewable energy and technology through innovation and technological development. We aim to maintain our leading world position in the lithium, potassium nitrate, iodine and thermo-solar salts markets.

For further information, contact:

Gerardo Illanes / gerardo.illanes@sqm.com
Isabel Bendeck / isabel.bendeck@sqm.com

For media inquiries, contact:

Maria Ignacia Lopez / ignacia.lopez@sqm.com
Pablo Pisani / pablo.pisani@sqm.com

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "plan," "believe," "estimate," "expect," "strategy," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make concerning the completion and implementation of the proposed partnership with Codelco, the development of Salar Futuro Project, Company's capital expenditures, financing sources, Sustainable Development Plan, business and demand outlook, future economic performance, anticipated sales volumes and sales prices, profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are estimates that reflect the best judgment of SQM management based on currently available information. Because forward-looking statements relate to the future, they involve a number of risks, uncertainties and other factors that are outside of our control and could cause actual results to differ materially from those stated in such statements, including our ability to successfully implement the Sustainable Development Plan. Therefore, you should not rely on any of these forward-looking statements. Readers are referred to the documents filed by SQM with the United States Securities and Exchange Commission, including the most recent annual report on Form 20-F, which identifies other important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to SQM on the date hereof and SQM assumes no obligation to update such statements, whether as a result of new information, future developments or otherwise, except as required by law.

News Provided by PR Newswire via QuoteMedia

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