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- Anson Resources (ASN) delivers a definitive feasibility study for phase one of its Paradox lithium project in Utah, highlighting a pre-tax net present value (NPV) of US$1.3 billion (A$1.9 billion)
- The study pits initial production from the project at 13,074 tonnes of lithium carbonate per year over an initial 10-year project life
- As such, Anson says the study confirms the project has “advanced potential” to become a major supplier of battery-grade lithium to the US electric vehicle market
- Executive Chairman Bruce Richard says there is further upside for the project based on future potential resource upgrades associated with recent exploration work
- Shares in Anson Resources are up 25.42 per cent to 37 cents at 11:06 am AEST
Anson Resources (ASN) has delivered a definitive feasibility study (DFS) for phase one of its Paradox lithium project in Utah, highlighting a pre-tax net present value (NPV) of US$1.3 billion (A$1.9 billion).
The company said with initial production pitted at 13,074 tonnes of lithium carbonate per year over an initial 10-year project life, the study confirmed the project had “advanced potential” to become a major supplier of battery-grade lithium into the US Electric vehicle market.
Following the initial 10-year period, Anson then expects the project to produce at lower commercial levels up to a production life of 23 years provided no further extraction wells were to come online.
Alongside the base-case US$1.3 billion pre-tax NPV, other key financial highlights for the project include a 47 per cent internal rate of return, with revenues of some US$5.1 billion over the full 23-year mine life.
The company said the phase one economics were based solely on the project’s existing indicated mineral resource of 239,000 tonnes and could be updated based on future mineral resource upgrades.
Anson Executive Chairman Bruce Richardson said the DFS confirmed the project as a major new source of high-purity lithium carbonate.
“The project delivers industry-leading ESG credentials based on direct lithium extraction utilising Sunresin technology using lower energy and water consumption, and with spent brine being reinjected back into the Paradox,” Mr Richardson said.
“Significantly, there remains material upside beyond the DFS announced today based on future mineral resource upgrades associated with the recently-completed drilling campaign at Cane Creek and the future Western Expansion drilling campaign, as well as incorporating Bromine production into stage two.”
The company expects the average annual earnings before interest, taxes, depreciation and amortisation (EBITDA) from phase one to be US$153 million.
Shares in Anson Resources were up 25.42 per cent to 37 cents at 11:06 am AEST.
