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BATTERY MINERALS PREVIEW

Where are they now?

ithium burst onto the Australian resources scene in 2015 with a host of ASX-listed companies spruiking
Lwhat they thought would be the next big thing in the space. Some of these projects are now in production,
some are still in development and some have disappeared from the spotlight entirely. Paydirt takes a look at
the status of these assets five years on from when air was first blown into the lithium bubble.

SAL DE VIDA MARICUNGA KITOTOLO/KANUKA
Location: Catamarca, Argentina Location: Atacama, Chile Location: DRC
Company: Galaxy Resources Ltd Company: Lithium Power International Ltd Company: Force Commodities Ltd
Status: FID in Q2/Q3 2020 (51%), Minera Salar Blanco SpA (31%), Status: Limited early stage exploration
Comment: With Mt Cattlin in WA seemingly Bearing Lithium (18%) Comment: Identified in late 2017 as a
settled after churning out a record volume of Status: DFS completed January 2019 potential Manono lookalike. Force holds
low-cost spodumene last year, investors are Comment: With a final decision on the three licences and has struck multiple
keen to find out whether Galaxy can repeat project’s EIA due this quarter, Maricunga JV agreements with local partners to
the trick in the lithium brine space. Stage has a pre-tax NPV of $US1.3 billion and advance exploration. However, despite
1 development is expected to be primarily IRR of 29.8%, based on production of positive initial results during 2018, work
funded from the company’s balance sheet. 20,000 tpa LCE over its 20-year mine life. has been scaled back significantly due to
First production is scheduled for 2022. unfavourable market conditions.

South America Africa

CANDELAS RINCON MANONO
Location: Catamarca, Argentina Location: Salta, Argentina Location: DRC
Company: Galan Lithium Ltd Company: Argosy Minerals Ltd Company: AVZ Minerals Ltd
Status: Maiden resource October 2019 Status: PEA published November 2018 Status: DFS due Q1 2020
Comment: A relative latecomer to the Comment: Argosy continues to strengthen Comment: On December 31, the one-
space, Galan shares soared more than ties with Mitsubishi Corp following the time market darling of the lithium
200% in early 2019 after returning a Japanese conglomerate’s initial site visit sector reported a DFS on Manono was
mouth-watering intercept from the first to Rincon in November 2017. A preliminary 82% complete and remained on track
hole ever drilled into the project, which sales agreement for up to 100t of lithium for delivery this quarter. It comes as
shares a border with Sal de Vida. However, carbonate produced from the on-site shareholders approved a $14.1 million
the come down was hard when the pilot plant over 12 months was followed placement from new strategic investor
results of the second hole fell short of in August by a non-binding heads of Yibin Tianyi Lithium Industry Co Ltd.
expectations. Nonetheless, Galan pushed agreement for the supply of up to 2,000 tpa
ahead and announced a maiden resource lithium carbonate product for three years, ARCADIA
of 684,850t @ 672 mg/L lithium. with the option of a further two years.
Location: Zimbabwe
KACHI OLORAZ Company: Prospect Resources Ltd
Status: Updated DFS published December ‘19
Location: Catamarca, Argentina Location: Jujuy, Argentina Comment: Prospect pounced on Arcadia
Company: Lake Resources NL Company: Orocobre Ltd in mid-2016, some 18 months before
Status: PFS due Q1 2020 Status: In production the late Robert Mugabe was ousted as
Comment: Lake ended 2018 on a high after Comment: The first of the new wave Zimbabwe President. A $US162 million
unveiling a maiden resource of 4.4mt LCE of ASX-listed lithium players to enter capex is estimated for a base case
for Kachi. Investors will be keen to see production in early 2016, Oloraz continues 2.4 mtpa operation which is forecast
the effectiveness of the direct extraction to set the benchmark. Orocobre expects to generate a pre-tax NPV of $US710
ion exchange process the company has its FY2020 production to be at least 5% million.LOM revenue of $US3.42 billion
formulated with Lilac Solutions Inc in higher than FY2019, although sales prices and an IRR of 71%. In December, African
a pilot plant production set-up which will be down due to the current softness Export-Import Bank was appointed to
was taking shape at the time of print. in the market. Construction of the $US295 arrange and manage of a $US143 million
Initial results indicate Kachi is capable of million Stage 2 facility, including the project finance debt facility, of which it is
producing battery-grade lithium carbonate 10,000 tpa Naraha lithium hydroxide plant, proposing to fund up $US75 million.
with 99.9% purity. is under way.

Page 46 FeBRUaRY 2020 aUSTRaLIa’S PaYDIRT