Alpha Lithium (NEO: ALLI) has filed its updated NI 43-101 mineral resource estimate report for the Tolillar Salar, following the announcement of the improved estimate two weeks ago. That announcement led to the company issuing a PEA estimate update just a month after its initial release.
The updated resource estimate saw the company expand its indicated resources to 3.6 million tonnes of lithium carbonate equivalent, a 70% improvement over the prior estimate. Inferred resources meanwhile improved to 1.4 million tonnes, a 20% improvement.
The resource estimate in turn saw the company improve its preliminary economic assessment, with the project improving its after-tax net present value to US$1.7 billion, up from US$1.5 billion.
The project is said to boast an estimated IRR of 25.6%, with US$8.2 billion of cumulative free cash flow over a 35 year mine life. The after-tax payback period is estimated at 3.7 years, based on annual production of 25,000 tonnes of battery-grade lithium carbonate. The figures were based on an average price of $23,146 per tonne of LCE, with cash costs coming in at $5,980 per tonne.
Alpha Lithium last traded at $1.27 on the Neo.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
