2024-01-15 00:57:29
American Lithium Corp released the results of its updated Preliminary Economic Assessment (PEA) for its Falchani Lithium lithium project located in Macusani (Puno), in southwestern Peru. Said PEA was completed by DRA Global, following the mineral resource estimate recently carried out by Stantec Consulting Services Ltd.
In said report, the Canadian company projected 32 years of mining, followed by 11 years of reserve processing during the useful life of Falchani. “It has the potential to become a substantial, low-cost, long-life producer of high-purity lithium carbonate. In addition, with the possibility of producing potash and cesium sulfate byproducts,” he specified.
Likewise, it revealed that the after-tax value in the Falchani project increased to US$5.11 billion, more than tripling from the US$1.5 billion estimated in 2019, considering the current price of high-purity lithium carbonate.
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The return of capital
Falchani will have a recovery period of the initial capital before taxes of 2.5 years. This estimate takes into account an estimated operating cost (Opex) of US$ 5,092 per ton of high purity lithium. Meanwhile, initial capital costs (capex) are close to US$ 681 million.
Likewise, Falchani’s PEA estimates that the net present value (NPV) of the project before taxes reaches US$8.41 billion, considering a price of US$22,500 per ton of high-purity lithium carbonate. Additionally, it projects a pre-tax internal rate of return (IRR) of 40.7%.
In its 32 years of mining operation, American Lithium Corp projects that Falchani will produce 2.64 million metric tons.
“The large increase in net present value, combined with low initial capital expenditure and strong economics in the updated PEA for Falchani are the culmination of successful site works programs and flowsheet optimization over recent years. ”said Simon Clarke, CEO of American Lithium.
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