Welcome to Kitco News’ 2022 outlook series. The new year will be filled with uncertainty as the Federal Reserve looks to pivot and tighten its monetary policies. At the same time, the inflation threat continues to grow, which means real rates will remain in low to negative territory. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2022.
(Kitco News) – Firefinch (ASX: FFX) announced today that the Boards of Firefinch and Ganfeng have approved a final investment decision for the Goulamina lithium project in Mali.
Importantly, the company said that early-stage engineering works, sterilization drilling and site-based activities are underway to fast track the development of the project.
According to the company’s statement, the update to the original October 2020 definitive feasibility study, which was completed in December 2021, demonstrated a pre-tax NPV of A$4.1 billion and a post-tax IRR of 83%.
Managing director Dr Michael Anderson said, “The approval of FID represents yet another major milestone for the Goulamina project. Clearly the outcomes of the DFS update have been extremely compelling to the Boards of both companies and it is a testimony to the project’s credentials that the partners have moved so quickly and collaboratively to commit to the development of Goulamina.”
Firefinch is a Mali focused gold miner and lithium developer. Firefinch has an 80% interest in the Morila gold mine and it currently owns 100% of the Goulamina lithium project. The company indicated that Goulamina is one of the world’s largest undeveloped high quality spodumene deposits.
Firefinch said that in partnership with Ganfeng, it will bring the project into production. A 50/50 incorporated joint venture has been established, with Ganfeng contributing US$194 million in development funding, comprising US$130 million in equity funding and US$40-64 million in debt funding.