Critical minerals developer Allkem has reported a more than $572-million cost-blow out at its capital projects being developed globally following a review and updated technical studies as part of its proposed merger with NYSE-listed Livent Corporation. The company told shareholders this week that the updated studies had confirmed the robust economics and tier one nature of the asset base and had further de-risked both company growth and future production.
PERTH – Critical minerals developer Allkem has reported a more than $572-million cost-blow out at its capital projects being developed globally following a review and updated technical studies as part of its proposed merger with NYSE-listed Livent Corporation.
The updated study was based on an average annual production of 311 000 t/y of spodumene concentrate, with an 18.8-year mine life, compared with the 321 000 t/y production targeted in 2021 over a mine-life of 19 years. “The feasibility study update results confirm the exceptional value that will be generated for all stakeholders through the development of this project. Inflationary impacts on operating and capital costs are within expectations and as seen at other projects, however the project economics remain strong with an increase of more than 100% in the pre-tax net present value to $2.9-billion reflecting an increase in lithium price assumptions and market outlook,” said Perez de Solay.
For the Stage 1 and Stage 2 operation, and a production rate of 45 000 t/y of lithium carbonate, the pre=tax net present value has increased from $3.04-billion to $5.51-billion, with the operating cost increasing from $3 280/t to $4 003/t. Compared with the 2019 prefeasibility study, development costs have increased from $446-million to $659-million for mechanical completion, based on a 25 000 t/y of lithium carbonate production capacity.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
AngloGold Ashanti moves its primary listing to the NYSE, commences tradingA roundup of all the mining news in the precious metals sector with a variety of company news, mining sector analysis, newsletter writer insights and executive interviews.
Read more »
UAW strike: Auto industry at a 'critical moment,' expert saysAuto workers are expanding their strike against the Big Three automakers — Ford (F), General Motors (GM), and Stellantis (STLA) — to 38 of GM's and Stellantis' parts and distribution centers. Center for American Progress Senior Director of Employment Karla Walter joins Yahoo Finance Live to discuss what the United Auto Workers (UAW) strike means for the auto industry. “We’re really at this critical moment in the industry, where we’re not just looking at labor negations, but we’re looking at a push towards what does the future mean in terms of electric vehicles,” Walter explains. Walter notes that there are three things “happening at once' here: “We see automakers really making investments here, we see the federal government investing in these companies [to make sure] we remain competitive as a sector,” Walter says. 'And [then], we see workers saying… 'we’re a part of this sector too, and we deserve to be rewarded for the wealth we help create.'” For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Read more »
Man in critical condition after Scarborough shootingA man is in critical condition after being shot in Scarborough on Sunday night.
Read more »
Springer sizzles as Blue Jays win critical series against RaysThe Jays are well positioned to clinch a playoff berth as they return home for the final six games, beginning Tuesday against the Yankees.
Read more »