PERTH (miningweekly.com) – An updated feasibility study (FS) into the Sal de Vida lithium project, in Argentina, has increased expected capital costs, while increasing the project’s expected net present value (NPV).
ASX-listed Galaxy Lithium on Tuesday reported that the updated FS estimated a capital cost of $474-million, including $31-million for an optional potash production circuit.
This compared with the previous capital cost estimate of $367-million, as estimated in the 2016 FS.
The project’s post tax NPV has, however, increased from $1.41-billion to $1.48-billion, while the internal rate of return declined from 34.6% to 26.9%
The Sal de Vida project’s operating costs are also forecast at $3 144/t during full production, with the mine expected to generate annual revenues of $360-million and earnings before interest, taxes, depreciation and amortisation of $270-million.
The project’s expected mine life has remained unchanged at 40 years, with production capacity also remaining at 25 000 t/y of battery grade lithium carbonate and 95 000 t of potash.
“We are very pleased that the formal revision to the economics of Sal de Vida continue to reinforce a world class asset as well as a project with a robust financial profile,” said Galaxy MD Anthony Tse.
He noted that with the updated economics now complete, Galaxy would proceed with the next stage of the process to evaluate a potential strategic partnership and offtake opportunities to advance the development of Sal de Vida.