Zinnwald Lithium Share News (ZNWD)

(Sharecast News) - Zinnwald Lithium said in an update on Wednesday that it was continuing to make strong progress on its integrated lithium hydroxide project in Saxony, Germany, which it described as one of Europe's most strategically significant lithium assets.

Speaking at the company's annual general meeting, chief executive Anton du Plessis said the project's recently-published pre-feasibility study confirmed its robust economics, with a post-tax net present value of €2.2bn, an internal rate of return approaching 20%, and projected cumulative cash flows of €12.1bn over a mine life of more than 40 years.

Du Plessis acknowledged that investor sentiment in the lithium sector remained subdued despite expectations that the market would enter a supply deficit towards the end of the decade.

He said the company's recent £3.4m fundraise, which was strongly supported by core shareholders including AMG Lithium and new investors, reflected confidence in the long-term potential of the project.

The company also highlighted the significance of its relationship with the Saxon State Government, which recently designated the Zinnwald project as one of "outstanding importance".

Du Plessis said the recognition underscored the project's strategic value to the region and to Europe's broader energy transition.

Community engagement remained central to the project's development, with an underground mine design intended to minimise surface impact.

The company said it was also planning to construct a nine kilometre underground tunnel linking the mine to its processing plant, eliminating the need for surface transport and significantly reducing environmental disruption.

While the project had potential future production capacity exceeding 35,000 tonnes of lithium hydroxide per year, it would initially operate within an 18,000-tonne-per-year phase one footprint.

"On behalf of the board, I would like to thank our shareholders, employees, and local communities for their continued support at this pivotal stage in Zinnwald Lithium's journey," Du Plessis added.

At 1151 BST, shares in Zinnwald Lithium were down 1.65% at 5.07p.

Reporting by Josh White for Sharecast.com.