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Atlantic Lithium (ALL) Shares Fell 13.5% Amid Upbeat Ewoyaa DFS

Analyst Team trader
Updated 29 Jun 2023

The Atlantic Lithium Ltd (LON: ALL) share price fell 13.47% after releasing the Definitive Feasibility Study (DFS) for the Ewoyaa Lithium Project in Ghana, West Africa. The DFS indicated that the mine could produce up to 3.6 million tonnes of spodumene concentrate over a 12-year Life of Mine (LOM).


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The DFS also showed that the Ewoyaa project has excellent project economics, including a Post-tax Net Present Value (NPV) of US$1.5 billion with free cash flows of US$2.4 billion from LOM revenues of US$6.6 billion.

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The mine also has an Average LOM EBITDA of US$316 million per annum, an Internal Rate of Return (“IRR”) of 105% and a short payback of 19 months. The project also had C1 cash operating costs of US$377/t of concentrate Free-On-Board (FOB) Ghana port. 

The Ewoyaa project’s All-in Sustaining Costs (AISC) of US$610/t is a desirable by-product of conventional open-cut mining systems. The company intends to use modular DMS to generate early cash flow and increased throughput from 2Mtpa to 2.7Mtpa. 

The Modular DMS will ensure that the project generates cash flows quickly and will reduce the mine build peak funding requirement as the capex will be repaid before the full completion of the plant build. The DFS maintains a low capital intensity of US$64/t of annualised throughput.

The DFS incorporates a Mineral Resource Estimate of 35.3Mt @ 1.25 Li2O and conservative LOM concentrate pricing of US$1,587/t, FOB Ghana Port. The mine’s throughput increased by 35% following significant Ore Reserves uplifting to 25.6Mt @ 1.22% Li2O.

Commenting, Keith Muller, Chief Executive Officer of Atlantic Lithium, said: “The Definitive Feasibility study has reaffirmed the Ewoyaa Lithium Project's impressive economic outcomes and profitability potential, providing improved confidence in Ewoyaa's ability to become a significant, near-term producer of spodumene concentrate. Using conservative pricing, the DFS outlines 3.6Mt concentrate production over a 12-year mine life, delivering US$6.6bn Life of Mine revenues, a post-tax NPV8 of US$1.5bn and an Internal Rate of Return of 105%.”

*This is not investment advice. 

Atlantic Lithium (ALL) share price. 

The Atlantic Lithium share price fell 13.47% to trade at 25.57p, from Wednesday’s closing price of 29.55p.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.