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Argosy Minerals Ltd.
Summary
| Project: | Rincon | |
|---|---|---|
| Deposit: | Rincon | |
| Location: | Argentina | |
| Commodities: | Lithium | |
| Date: | 11/28/2018 | |
| Report Code: | JORC | |
| Report Type: | PEA | |
| Project Stage: | Pursuing Resource Increase/Upgrade | |
| Report details: | 28-11-2018: Argosy Minerals Ltd. announces a PEA report for its Rincon deposit at the Rincon project. PEA results incl. pre-tax NPV of US $399M (10%), IRR of 53%, 11yr LOM at the project. Argosy Minerals Limited (ASX: AGY) (“Argosy” or “Company”) is pleas | |
| Resources: | (not mentioned in this report) | |
| CP/QP: | [Overall Report]: Duncan Storey (AQ2 Pty Ltd.) | |
| ABSTRACT: | Argosy Minerals Limited (ASX: AGY) (“Argosy” or “Company”) is pleased to announce completion of the highly anticipated Preliminary Economic Assessment (“PEA”) for the Rincon Lithium Project, located in Salta Province, Argentina. The PEA, equivalent to a JORC Scoping Study, provides outcomes that are considered outstanding and confirm or surpass the Company’s original expectations. Key highlights include approximate pre-tax net present value (“NPV”) of US$399 million (~A$554 million) using a 10% discount rate, providing an approximate IRR of 53% and EBITDA margin of 61% for the base case scenario (“BCS”). Argosy Managing Director, Jerko Zuvela said “We are delighted to deliver the Preliminary Economic Assessment conducted on the Rincon Lithium Project, which confirms that our Project is one of the best new lithium development projects worldwide in terms of high investment returns, EBITDA margins and market significance. The PEA, together with our operational Stage 1 plant, provides Argosy with a convincing investment proposition to secure additional project finance and strategic partnerships to continue our progress to commercial development. The results of the PEA further validate the Company’s fast-track development strategy to fully develop the Rincon Lithium Project toward commercial production.” Two Li2CO3 (“LCE”) production scenarios have been considered in the PEA, being: (a) the base case of 10,000 tonnes per annum with a 16.5-year mine life; and (b) an accelerated development case of 15,000 tonnes per annum with an 11-year mine life. Furthermore, two forecast Li2CO3 price cases were overlain to assess the financial metrics of each case, being: (a) US$13,000/t, based on Benchmark Mineral Intelligence’s independently assessed long-term price forecast; and (b) US$15,500/t, based on recent spot export prices for battery grade LCE from South America (as supplied by Benchmark Mineral Intelligence). In addition, two initial pre-development capital cost figures: ~US$140.9 million (~A$195.7 million) – termed ‘Argosy case’; and ~US$215.2 million (~A$298.9 million) – termed ‘factored case’, have been used for the 10,000 tonnes per annum production scenario. A single ~US$274.5 million (~A$381.3 million) ‘factored case’ was used for the 15,000 tonnes per annum production scenario. All NPVs were calculated using a 10% discount rate. | |
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