RE: Prem12 Apr 2023 23:43
I was not around during the RHA debacle but re-reading the info on what happened it is evident that it is not comparable to Zulu. For example, RHA depended on indigenous organisations and poor power supplies from ZESA, the state power company. Now we have our own dam and will generate power for the plant and others.
Also the 2017 BARA report was way off, the Chinese got it done in half the time, for a fraction of a cost and triple the output. Plus they based their calculations on lithium carbonate and not spodumene 6%:
"Consulting expert Bara Consulting has completed a scoping study which has demonstrated a robust project with attractive economics based on two different scenarios.
A concentrate sales option would include a targeted annual production rate of 84 000 t of spodumene concentrate and 32 500 t of petalite concentrate for 15 years. It would require
$64 million to build the project, which is not an ‘indigestible’ amount considering the returns.
Bara has determined the project will have a $127 million pre-tax NPV at 10%, an 86% pre-tax IRR, an after-tax NPV at 10% of $92 million and just a very short two-year payback period. Over the 15-year period it will generate $1 billion in gross revenue (based on sales prices of $800/t spodumene concentrate and $400/t petalite concentrate).
The alternate option is to construct a lithium carbonate plant to produce 14 500 t of lithium carbonate (Li2CO3) for the same 15-year period. It would require $238 million to build and will deliver a $719 million pre-tax NPV at 10%, an 80% pre-tax IRR and after-tax NPV at 10% of $524 million and again just a two-year payback. Gross revenue of $2.9 billion would be achieved (based on a sale price of $15 000/t of Li2CO3)."
We are in a muuuuuch better position! Let's go PREM!
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