Strategically Important asset to Europe - Circa 2Bn NPV - Far off asset value28 Mar 2024 06:05
Morning - nice to see the ASX close at 7% up at a 14.47 equivalent
So. Noted that this board has a few very persistent bashers trying to cause fear, uncertainty and doubt. But to remind ourselves what were actually investing in. Cinovec is the largest lithium deposit in Europe and projects this size take time.
· Annual production of battery grade lithium hydroxide monohydrate modelled to increase from 25,267 tpa to 29,386 tpa, an increase of 16%.
· NPV8 (post tax) increases from US$1.108B to US$1.938B, an increase of 74.9%, based upon a lithiumhydroxide price of USD17,000 per tonne.
· Post tax IRR of 36.3% and a payback period of 2.5 years from the commencement of production.
· Up-front capital cost due to backfilling plant and additional capital costs to produce 29,386 tpa lithium hydroxide increased to US$644m.
· This 2022 PFS Update assumes the life of mine extraction of 13.1% of the Measured and Indicated JORC Resources at Cinovec.
· Use of tailings for backfill will result in a far smaller environmental impact, further enhancing the Project's already strong ESG credentials.
ZNWD have a few years and alot of work just catch up to where we are - are worth more, will produce less, from a smaller resource. Stop dramatizing this final extension.
For anyone who hasn't listened
Interviewer - "Partnership/offtake - we've spoken about Partnership offtake atlength for long period of time - how confident are you this particular agreement will drop in the near future?"
Keith "It's a juggle because of the macro factors, but as iv always said, we do want a partnership agreement. This is not a customer sort of arrangement, and the other parties want this as well. So this is a long-term partnership with exactly the right sort of people we want to be selling our product to. Other factors come into that conversation - 3rd party factors funding, EU grants and this sort of thing, but its the key factor for us now to bring it to fruition as we reach the end of the DFS and like i say its something im giving my full attention too."
This review process could significantly improve the economic and social/community outcomes. Geomet considers this to be an important development in the Project and makes a further delay in the DFS well justified.
Sign In
Follow the stocks
