RE: Sonora JV value30 May 2018 11:26
CAPITAL EXPENDITURE
One of the biggest changes in the feasibility study is a significant increase in capital spending, with phase 1 requiring an investment of US $ 420mn, more than US $ 240mn, followed by US $ 380mn for the expansion of the phase 2, more than double the US $ 177mn previously forecast.
One of the main elements behind the increase is the higher cost of the lithium processing plant, with US $ 158mn in each development phase, compared to US $ 90.5mn in the pre-feasibility study.
This, in part, reflects a change in the processing method from scrubbing to milling with SAG to improve energy efficiency and recoveries.
The higher capital expenditure is also due to higher contingencies, EPCM costs (engineering, procurement, construction administration) and US $ 55.3mn in common plant services in each phase, which were not included in the 2016 cost calculation .
PROFITABILITY AND PRICES
Sonora is an economically viable project, with a post-tax IRR of 21% in the feasibility study.
This implies lithium carbonate battery prices of US $ 11,000 / t, a much more conservative view than the fluctuations of US $ 12,000 / t or US $ 20,000 / t assumed in the pre-feasibility study, which indicated a TIR of 26.1%.
The price estimate is based on the forecast of lithium demand, which suggests an average annual growth of 11.6% in consumption over the next 20 years, mainly driven by the manufacture of batteries.
The average global prices doubled in two years to more than US $ 12,000 / t in 3Q17, according to the feasibility study.
The rest found here
https://mineriaenlinea.com/2018/05/bacanora-se-acerca-a-la-construccion-en-el-proyecto-de-litio-sonora/
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