Shares of IronRidge Resources Ltd (LON: IRR) shot up 62% after announcing that a scoping study at the Ewoyaa lithium project in Ghana demonstrated potential earnings of $100 million per year.
The iron ore miner explained that the study shows that the mine can produce up to two million tonnes of lithium during its lifetime. Total lifetime earnings are estimated at $1.55 billion, excluding the significant potential to extend the mine’s life.
The study showed that the mine could produce approximately 295,000 tonnes of 6% Li2O spodumene concentrate annually, with an internal rate of return of 125%, and a capital cost estimate of $68 million.
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The mine is also located close to the right infrastructure, reducing its estimated operational costs resulting in estimated mean underlying earnings (EBITDA) of $105 million each year.
Vincent Mascolo, IronRidge’s CEO, said: “Today’s landmark update regarding the company’s exceptional scoping study confirms that the Ewoyaa lithium project is an industry-leading asset and transformational for IronRidge,”
Adding:
“The project leverages existing infrastructure, including directly adjacent HV power, a major highway within 1km of the site, and the major port of Takoradi less than two hours’ drive away.”
IronRidge Resources share price
.IronRidge shares surged 62.07% to trade at 23.5p having risen from Monday’s closing price of 14.5p.