Arcadia

ASX-listed African lithium developer Prospect Resources has completed a DFS into the 2.4 Mtpa development of its flagship 87%-owned Arcadia Lithium Project in Zimbabwe.

The results confirm the project’s strong financial and geological merits, positioning the company to be a leading producer of lithium and battery minerals.

This successful DFS at Arcadia provides a compelling basis for the company to drive towards completing additional project off-take arrangements (in addition to its existing off-take agreement with Sinomine) and securing project financing in anticipation of construction.

Construction and mine development at Arcadia, to be managed by Prospect Lithium Zimbabwe (PLZ), is scheduled to be completed in Q3, CY2020, with commissioning from November 2020.

The DFS indicates that Arcadia will be a strong financial, high margin project with current forecast Life of Mine (LOM) revenue of US$2.93 billion and average annual EBITDA of US$106 million over an estimated 12-year mine life.

“The completion of the successful DFS on a base case of a 2.4 Mtpa development of the Arcadia Lithium Project is a great achievement,” highlights Prospect Resources MD, Sam Hosack.

The DFS results position the company to become a key player in the global lithium market.”

“The successful finalisation of this DFS is a testament to the strength of the Prospect owner’s team.

“A vast amount of work has been contributed to this DFS and validates my belief that Arcadia is Africa’s leading lithium development project with respect to its scale, grade, economics and team.”

“This DFS represents a significant milestone for Prospect as we transition into development. We are excited by the opportunity to capitalise on the strong fundamentals of the lithium market, initially through the production of lithium concentrates.

“Based on the mine economics and financial strength of the project, we are moving swiftly to finance, develop and commence production at Arcadia,” he continues.

“We have initiated pre-feasibility works to test the viability of a lithium chemicals plant on site, in order to upgrade our product and capture additional value from the lithium supply chain.”