Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the results published today by European Metals Holdings Limited (“European Metals” or “EMH”) from the successful update of the process flowsheet previously developed to enable the production of lithium hydroxide (LiOH.H2O). This work has been completed in conjunction with test-work confirming the production of battery grade lithium hydroxide from Cinovec ore. EMH states that the results significantly enhance the forecast economics of the Cinovec Project.
- Net estimated overall cost of production post credits: $3,435 / tonne LiOH.H2O
- Project Net Present Value (“NPV”) increases 105% to: $1.108B (post tax, 8%)
- Internal Rate of Return (“IRR”) increased 37% to 28.8% (post tax)
- Total Capital Cost: $482.6M
- Annual production of Battery Grade Lithium Hydroxide: 25,267 tonnes
- Studies are based on only 9.3% of reported Indicated Mineral Resource and a mine life of 21 years processing an average of 1.68 Mtpa ore
- The process used to produce lithium hydroxide allows for the staging of lithium carbonate and then lithium hydroxide production to minimize capital and startup risk and enables the production of either battery grade lithium hydroxide or carbonate as markets demand
Cadence holds approximately 19.1 percent of the equity in European Metals, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec.
The full release can be found at:
Cadence Minerals CEO Kiran Morzaria commented: “Great work from Keith Coughlan and the EMH team. This important update to the PFS has increased the project NPV and once again highlighted the strategic importance of the Cinovec project for the European lithium market.”
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For further information:
|Cadence Minerals plc||+44 (0) 207 440 0647|
|WH Ireland Limited (NOMAD & Broker)||+44 (0) 207 220 1666|
|Novum Securities Limited (Joint Broker)||+44 (0) 207 399 9400|
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identiﬁed by their use of terms and phrases such as ‘‘believe’’ ‘‘could’’ “should” ‘‘envisage’’ ‘‘estimate’’ ‘‘intend’’ ‘‘may’’ ‘‘plan’’ ‘‘will’’ or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reﬂect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.