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(Kitco News) – Piedmont Lithium said today that the company is “extremely pleased” with the results of a Bankable Feasibility Study (“BFS”) for its proposed integrated lithium hydroxide business in Gaston County, North Carolina.
According to a statement, BFS confirms that Carolina Lithium could be one of the world’s largest and lowest-cost producers of lithium hydroxide, “with a sustainability footprint that is superior to incumbent producers, all in a highly favorable location to supply the rapidly growing electric vehicle supply chain in the United States.”
The company said that the project generates NPV (after tax) of US$2.0 billion and post-tax IRR of 27% and assumes a fixed price of $18,000/t for battery quality lithium hydroxide versus current spot price of >$30,000/t.
Importantly, Piedmont added that BFS estimates annual steady-state EBITDA of $459 million over the first 10 years of operations, with steady-state LiOH cash costs projected to be $3,657/t for the first 10 years among the lowest in the world.
Piedmont added that BFS is based on the company’s Mineral Resource estimate reported in October 2021, of 44.2 Mt at a grade of 1.08% Li2O and the by-product Mineral Resource estimates comprising 7.4 Mt of quartz, 11.1 Mt of feldspar and 1.1 Mt of mica reported in June 2021.
The study emphasizes an initial production target of 11 years of spodumene concentrate to be processed at the company’s chemical plant which will be located adjacent to mining operations.
Importantly, the company said that BFS incorporates assumptions of additional lithium hydroxide production sourced from equity-backed offtake agreements, which allow the company to secure spodumene from alternate sources, increasing the chemical plant life to 30 years.
“We are exceedingly pleased with the results of the BFS for the Carolina lithium project, which we believe confirm the project’s industry-leading sustainability profile as well as exceptional economics while incorporating the substantial capital and operating cost inflation experienced during 2021. We will soon commence detailed engineering for the project with a view to a final investment decision in 2022,” stated President and CEO Keith D. Phillips.