Galan Lithium Limited (ASX: GLN) Has unveiled positive results of the Preliminary Economic Assessment (PEA) for its 100% owned Candelas Project in Catamarca Province, Argentina.
The study estimated a production profile of 14,000 tonnes per annum of battery grade lithium carbonate product including some technical grade product for the first three years.
Highlights:
- Robust economic results, unleveraged Pre-tax NPV of US$1,225m (8% discount rate) and IRR of 27.9% with a four (4) year payback period
- Long life project 25 years of 14ktpa of battery grade lithium carbonate (LCE)
- Competitive cash production cost for Li2CO3 of US$4,277/t positioning the Candelas project as a low-cost developer in the lithium industry
- Galan now has two (2) PEA study level projects with combined long term production potential of 34ktpa LCE
- Long term average real lithium price assumption (2025-2040) of US$18,594/t LCE used as the basis for the economic assessment
- Initial capital cost of US$ 408M (US$ 302M direct costs)
- Average life-of-mine annual pre-tax EBITDA of US$188m
- Scoping Study/PEA completed under the guidance and assistance of engineering consultancy Ad Infinitum
Managing Director, Juan Pablo (JP) Vargas de la Vega, said the PEA process has provided significant economic outcomes for the Candelas Project which Galan believes can be optimised and enhanced further to refine the Project’s obvious potential.
“We are delighted by the strong and competitive results of the Candelas Project PEA. Our projects continue to show healthy economics and upside despite using a conservative long term price assumption at a time when new lithium projects are scarce. Galan now has two potential production fronts combining for a long-term production rate of 34ktpa of LCE. This rate could be even higher once we finish drilling at our flagship HMW project.
“We remain excited about the potential value add for our shareholders once we enter the lithium market with prices expected to be +US25k/t LCE. Our projects would now be among the lowest cost of any future producers in the lithium industry, due to their high grade and low impurity setting, green credentials and a low carbon footprint. Galan is excited to be a part of the solution to the global decarbonisation story.
“I would like to thank all of Galan’s teams in Argentina, Chile and Australia, and the strong support from the Board to take this study forward. Special thanks to the Ad Infinitum team in Chile that understood our challenge and worked with us to deliver the study on time and on budget.
“Galan now has a solid commercial base to move forward with a clean, proven, low tech and low energy solution with no JV or non-statutory royalties involved. We also believe we have capability to further review and reduce Opex and Capex.
“We have learnt so much more about Candelas on this journey and will continue to apply our findings in optimising our next steps at the Pre-Feasibility and/or Definitive Feasibility studies. Importantly, we will also continue to review the possibility to produce lithium chloride concentrate to reduce time to market and capital expenditure at both of our projects.
“As a result, we remain determined to bring our projects to market in the shortest possible time so that we can supply lithium for future lithium battery requirements needed for electric vehicles.”
For further information please visit: https://galanlithium.com.au/
