Rare opportunity available to accumulate more at these levels after the recent sell off from the DOW correction.
Canaccord .60 - http://spcagent.co/tawana//wp-content/uploads/sites/37/2017/11/Canaccord-Research-Report-Initiation-of-Coverage.pdf
Tribeca Investment Partners
Feasibility Study Key findings – “Starter Pit”1
IRR of 185% and rapid payback period of 12 months.
EBITDA of $83m per annum, operating of $223m (after capital).
Forecast annual production approximately 155,000tpa of spodumene concentrate from the DMS and 260,000lbs pa of tantalum
pentoxide from the TPF.
Lowest capital cost lithium project in Australia of $42m (excluding pre-production operating costs).
Starter pit life of 3.6 years with further growth for the Project expected from infill and extensional drilling.
Approximately 86% of total lithium Indicated and Inferred Resources report to scoping pit optimization.
Detailed design well advanced , long lead items ordered and key fabrication packages awarded under an early works contract.
Production scheduled for the March quarter 2018.
Lowest Capex in Australia
Retrofit 1,200ktpa spodumene DMS circuit
Run separate tantalum plant at 350ktpa
Limited additional infrastructure required
Limited mining pre-strip required
Exceptional recoveries and product
US$880/t for 2018 and 2019
A$25m pre-payment (TAW 50%)
Paid from 20% of lithium sales
Production of 155,000t p.a. from March 2018 (increasing with the addition of fines circuit)
• Top quality +1mm spodumene concentrate
• Significant tantalum by-product production
• Lowest Capex (of stand alone mines)
• High Project Internal Rate of Return and rapid payback (1 year)
• Significant Resource potential from successful step out drilling and new areas identified.
• Resource and Reserve update in October 2017