Allkem Limited (ASX|TSX: “
AKE”, the
“
Company”) provides an update on its global
lithium portfolio, business activities and financial position1 as
at 30 September 2023.
HIGHLIGHTS
OPERATIONS
- The Olaroz
Lithium Facility2 achieved above budget quarterly production of
4,453 tonnes of lithium carbonate, up 35 % on the previous
corresponding period (“PCP”)
- Record lithium
carbonate sales volume of 4,554 tonnes for the quarter, generating
Olaroz revenue3 of ~US$118 million with average realised price of
US$25,981/tonne4 FOB and a gross cash margin of 77% or
US$19,893/tonne
- Mt Cattlin
achieved record quarterly production of 72,549 tonnes of spodumene
concentrate at 5.3% Li2O grade, a ~25% increase quarter on quarter
(“QoQ”) and in line with full year guidance
- Strong Mt
Cattlin recovery of 68% across the quarter demonstrates favourable
grade and mineralisation as mining continues in the main part of
the orebody
- Mt Cattlin
received approval from the Western Australian regulator to proceed
with the mining of Stage 4 cutback which supports the previously
announced extension of mining activities
- Spodumene sales
of 76,631 dmt generated record revenue of ~US$201.1 million5 with a
gross cash margin of 71% at average sales price of approximately
US$3,000/dmt on a SC6 CIF basis
DEVELOPMENT PROJECTS
- Material growth
profile underpinned by 40 million tonnes (“Mt”) of
lithium carbonate equivalent (“LCE”) Allkem Group
Resource with plans to deliver 179kt LCE production capacity by
FY28
- Olaroz Stage 2
achieved first wet production in mid-July with commissioning
continuing and production scheduled for H2 CY23. Ramp up is on
track and expected to take approximately 15 months
- At Naraha, 526
tonnes of lithium hydroxide were sold and after completing work on
product quality and operational improvements, battery grade
qualification with customers has continued throughout the
quarter
- Sal de Vida’s
Mineral Resource increased to 7.17Mt LCE and the Reserve increased
43% to 2.49Mt LCE, supporting a 40 year project life. OPEX remains
highly competitive; Stage 1 was updated to US$4,529 per tonne LCE,
and Stage 1 and 2 combined is US$4,003 per tonne LCE. Stage 1 CAPEX
was updated to US$374 million and Stage 2 to US$657 million
- The first two
strings of ponds at Sal de Vida Stage 1 are complete. Process plant
engineering was 66% complete, procurement was 70% and construction
was 13% by quarter end
- James Bay
resource increased by 173% to 110Mt @ 1.3% Li2O solidifying the
tier 1, long life nature of the asset. OPEX and CAPEX were updated
to US$407 per tonne of 5.6% Li2O concentrate and US$381.5 million
respectively, in line with industry conditions while economics
remain robust
- Detailed
engineering and procurement at James Bay have reached 84%
- A recent project
update of the Cauchari Resource defined a 25ktpa LCE production
capacity with competitive OPEX of US$4,081/t LCE, CAPEX of US$659
million and first production expected in H2 CY27
FINANCIALS AND CORPORATE
- The notice of
meeting and explanatory statement for the 2023 Annual General
Meeting (8 November, 2023) was dispatched to shareholders in early
October
- The notice of
meeting and explanatory statement (“Scheme
Booklet”) for the proposed merger with Livent Corporation,
is expected to be dispatched to shareholders in November 2023. The
date of the meeting will be confirmed once all approvals of the
merger and Scheme documentation have been received
- Allkem and
Livent have agreed that the name of the combined company will be
Arcadium Lithium plc upon a successful merger of equals
transaction
- Group revenue
for the quarter was approximately US$327 million and group gross
operating cash margin1 was approximately US$237 million (72%)
- At 30 September
group net cash6 was US$671.7 million up US$23.3 million from 30
June 2023
SUSTAINABILITY
Allkem continues to focus on a long-term
commitment to environmental and social performance and transparent
reporting across its operations and growth projects.
In July a US$130 million sustainability-linked
green project financing facility was signed with the International
Finance Corporation (“IFC”) for Sal de Vida Stage
1. Allkem is in discussions with another lender to increase the
project finance facility by a further $50 million, for a total
financing package of $180 million. The facility recognises Allkem’s
level of commitment to sustainability and alignment with the
globally recognised IFC environmental and social performance
requirements.
Decarbonisation - Net zero
commitment
A key performance metric of the IFC loan is
linked to achieving low emissions intensity targets for the Sal de
Vida Project. Allkem has also become part of the Electric Mine
Consortium in Australia which promotes development and testing of
new technology for mine site emissions reduction.
Human Capital - Safety performance
Allkem recorded a 12-month moving average Total
Recordable Injury Frequency Rate of 2.03 (per million hours) at the
end of September, slightly higher than the closing rate of FY23.
The 12-month moving average Lost Time Injury Frequency Rate was
0.72 (per million hours). Three recordable Injuries were incurred
by contractors during the quarter with one resulting in a lost time
injury. Investigations have been carried out and corrective actions
are being implemented.
Additional Safety initiatives during the quarter
have included continued roll out of the Field Critical Control
Check at Mt Cattlin and special focus on deployment of actions to
improve Driving Safety performance in Argentina (e.g., related
campaign, development of vehicle monitoring technologies and
drivers focused training).
Natural Capital – Impact assessment &
Rehabilitation
Environmental monitoring related activities on
the James Bay territory were suspended by the government during
forest fires that continued to impact the region until late
August.
At Mt Cattlin, winter 2023 rehabilitation
earthworks were completed, with final profiles and cover soil
systems constructed over approximately 7.5 hectares of south facing
Waste Dump 1 slopes.
Shared Value – Community initiatives
A new physiotherapy room at Susques Hospital
(near Olaroz) was completed as a donation by the company following
a collaborative effort with COAS (Cooperation for Social Action)
and the Ministry of Health of the province. This followed a joint
assessment of the hospital's needs and the impact on the
community.
At Sal de Vida, Allkem continued delivering
Health and Wellbeing programs to local communities by supporting
visits by medical professionals to all the villages of Antofagasta
de La Sierra. During August, 65 people from the villages
participated in the program.
Community engagement with key Cree stakeholders
for the James Bay project continues and remains positive.
OPERATIONS
OLAROZ LITHIUM FACILITY
Lithium Carbonate |
Jujuy Province, Argentina |
Production
Production for the September quarter of 4,453
tonnes was up 35% on the previous corresponding period.
Approximately 42% of quarterly production was battery grade lithium
carbonate, higher than previous quarter and in line with customer
requirements.
Excellent operational performance continues
reflecting robust plant reliability, low downtime and improved
energy efficiency with high brine feedstock concentration.
Sales and financial performance
Record quarterly product sales volume was up 33% QoQ to 4,554
tonnes of lithium carbonate of which 31% was battery grade.
Total sales revenue was ~US$123 million
including US$4.6 million related to sales of a lithium carbonate
by-product. The average price received from third party sales was
US$25,981/tonne on an FOB basis.
Cost and margins
Cash cost of goods sold for the quarter was
US$6,088/tonne up 4% from prior quarter. Cost of sales have
increased over the last year due to the removal of export
incentives, material increases in the price of soda ash, lime and
natural gas as well as employment costs being affected by
inflation. These increases have in part been mitigated by strong
operational performance with high brine concentration and high
process recovery. Gross cash margin for the quarter was 77% or
US$19,893/tonne.
Table 1: Olaroz September quarter
production and sales metrics
Metric |
Units |
Sep Q FY24 |
Jun QFY24 |
QoQ % |
PCP Sep FY23 |
PCP % |
Production |
tonnes |
4,453 |
5,059 |
-12% |
3,289 |
35% |
Sales |
tonnes |
4,554 |
3,430 |
33% |
3,721 |
22% |
Third party price received |
US$/tonne |
25,981 |
38,062 |
-32% |
43,237 |
-40% |
Cash cost of goods sold1 |
US$/tonne |
6,088 |
5,882 |
4% |
4,563 |
33% |
Revenue |
US$M |
123 |
132 |
-7% |
150 |
-18% |
Gross cash margin (Av. Price) |
US$/tonne |
19,893 |
32,172 |
-38% |
35,754 |
-44% |
Gross cash margin |
% |
77% |
85% |
-9% |
89% |
-13% |
- Excludes
royalties, export tax and corporate costs
Stage 2 expansion
The Olaroz Stage 2 lithium facility achieved
first production in mid-July, with wet lithium carbonate cake
produced at the filter presses. Commissioning activities continue
and production is on track for H2 CY23, with ramp-up expected to
take approximately 15 months.
Project update
Allkem reviewed and updated the Mineral
Resources and economics for Olaroz Stage 1 and Stage 2. Results are
summarised below.
Metric |
Units |
|
Mineral Resource Estimate |
Mt LCE |
22.63 |
Annual Production Capacity Stage 1 and 2 |
Tonnes LCE/ year |
42,500 |
Pre-tax NPV for Stage 1 and 2 @ 10% discount rate |
US$ billion |
7.01 |
OPEX Stage 1 and 2 |
US$/ tonne LCE |
4,149 |
Total Mineral Resource Estimate of 22.63 Mt LCE
is a 10% increase from the previous estimate in March 2023 with a
52% increase in Measured Mineral Resources. The Mineral Resource
now comprises 11.54 Mt of LCE, as Measured, and 3.83 Mt as
Indicated for a combined 15.38 Mt of Measured & Indicated
Mineral Resource. There is an additional 7.25 Mt of Inferred
Resources for a total resource of 22.6Mt (Measured, Indicated and
Inferred).
Pre-tax Net Present Value (“NPV”) of US$7.01
billion at a 10% discount rate and long term operating costs for
the combined Stage 1 and Stage 2 operation are estimated at
US$4,149 per tonne LCE over the life-of-mine considering synergies
from the joint operation of Stages 1 and 2.
MT CATTLIN
Spodumene concentrate |
Ravensthorpe, Western Australia |
Production
Production in the September quarter was a record
72,549 dmt of spodumene concentrate at 5.3% Li2O grade, a 25%
increase from the prior quarter and in line with FY24 production
forecast of 210-230kt. Recovery of 68% demonstrates favourable
grade and favourable mineralisation as mining has moved into the
central zones of the main ore body.
Sales and financial performance
76,631 dmt of spodumene concentrate were shipped
during the quarter at an average grade of 5.3% Li2O. Revenue
generated for the quarter was US$201.1 million at an average
realised sales price of US$2,625/dmt CIF which corresponds to
approximately US$3,000/dmt CIF on an SC6 equivalent.
An additional US$2.7 million of revenue was
generated from a delayed shipment of low grade spodumene
concentrate.
Cost and margins
The FOB cash cost of production for the quarter
of US$636/dmt was 23% lower QoQ due to higher production volumes
and recoveries compared to previous quarters. The gross cash margin
for the quarter was 69% or approximately US$142 million.
Table 2: Mt Cattlin quarterly
operational and sales performance
Metric |
Units |
Sep 23 |
Jun 23 |
Production |
|
|
|
Recovery |
% |
68 |
67 |
Concentrate produced |
dmt |
72,549 |
58,059 |
Grade of concentrate produced |
% Li2O |
5.3 |
5.3 |
Sales |
|
|
|
Concentrate shipped |
dmt |
76,631 |
46,787 |
Grade of concentrate shipped |
% Li2O |
5.3 |
5.3 |
Realised price |
US$/dmt CIF |
2,625 |
4,297 |
Revenue1 |
US$ million |
201.1 |
201.0 |
Costs of production |
|
|
|
Cash cost of production2 |
US$/t FOB |
636 |
830 |
- Excludes tantalum and low grade sales
- Excluding marketing and royalties.
Mining activities
As previously announced, the next mining stage
(Stage 4) consists of two separate cutbacks (Stage 4-1 and 4-2) to
optimise ore presentation. Regulatory approval was obtained on 30
September for the Stage 4 cutback and mining commenced at Stage 4-1
in early October.
In the second cutback (Stage 4-2), the
increasing waste/ore strip ratio at depth via open pit mining
methods is being evaluated against an alternate underground mining
option in the form of a Feasibility Study.
Mineral resource and reserve update
Allkem reviewed and updated the Mt Cattlin
Mineral Resource Estimate to 12.1Mt at 1.3% Li2O and Ore Reserve to
7.1Mt at 1.2% Li2O. The update incorporates infill drilling results
from the 2NW deposit, depleted mined material and site stockpiles
at 30 June 2023 and material to be mined after this date.
DEVELOPMENT PROJECTS
NARAHA
Lithium Hydroxide |
Naraha, Japan |
The operational focus continues to be on
progressively increasing product quality and volumes to design
capacity. The scheduled maintenance shutdown was complete during
the quarter and plant performance demonstrated capability to run at
100% capacity.
526 tonnes of lithium hydroxide were sold to
third party customers during the quarter. The battery grade
hydroxide qualification process with customers continues with
samples produced in early July.
SAL DE VIDA
Lithium Carbonate |
Catamarca Province, Argentina |
Sal de Vida is designed with a nameplate
capacity of 45ktpa of predominantly battery grade lithium carbonate
through an evaporation and processing operation at the Salar del
Hombre Muerto site. Development will be delivered in two stages
with Stage 1 currently in construction targeting 15ktpa production
capacity.
Project Update
Allkem released an update to Sal de Vida’s
Mineral Resource Estimate and Ore Reserves, project costs, schedule
estimates and project economics in the announcement titled ‘Sal de
Vida Delivers Improved Economics, Resource, Reserves’ on 25
September 2023. The results are summarised below.
Metric |
Units |
Total |
Mineral Resource Estimate |
Mt LCE |
7.17 |
Ore Reserve Estimate |
Mt LCE |
2.49 |
Project Life |
Years |
40 |
Annual Production Capacity Stage 1 |
Tonnes LCE/ year |
15 |
Annual Production Capacity Stage 1 and 2 |
Tonnes LCE/ year |
45 |
Pre-tax NPV for Stage 1 and 2 @ 10% discount rate |
US$ billion |
5.51 |
OPEX stage 1 |
US$/ tonne LCE |
4,529 |
OPEX Stage 1 and 2 |
US$/ tonne LCE |
4,003 |
CAPEX Stage 1 |
US$ million |
374 |
CAPEX Stage 2 |
US$ million |
657 |
The total Mineral Resource Estimate increased by
5% to 7.17 Mt LCE from the previous estimate in 2022, with a 41%
increase in Measured Mineral Resource. The total Ore Reserve
Estimate of 2.49 Mt LCE supports a 40-year project life based on
Ore Reserves only, a 43% increase from the previous statement due
to a revised point of reference for Ore Reserve reporting of ‘brine
pumped to the evaporation ponds.
Pre-tax NPV for Stage 1 and 2 increased ~82%
from the previous study to US$5.51 billion at a 10% discount rate.
Operating costs for Stage 1 and 2 increased from US$3,280 per tonne
LCE to US$4,003 per tonne LCE due to increases in the price of soda
ash, lime and labour costs since the previous study.
Stage 1 operating costs increased to US$4,529
per tonne LCE due and CAPEX for Stage 1 increased to US$374
million, for mechanical completion, representing a 38% increase
which is in line with inflationary conditions.
The prefeasibility study update confirms the
Stage 2 expansion will be completed on the same design basis as
Stage 1 with a twofold modular replication of the Stage 1 design.
Stage 2 CAPEX is estimated at approximately US$657 million, with
Stage 2 benefiting from Stage 1 detailed engineering, established
on site infrastructure and established regional construction teams
and facilities.
Project execution
Construction of the first two strings of ponds
reached completion and they are now filled with brine. The third
string of ponds has reached 63% of construction completion. The
brine distribution system is complete and the booster station has
been commissioned.
Figure 1: First 2 strings of evaporation
ponds complete (left), plant construction underway (right)
The process plant engineering is at 66%
completion, procurement is at 70% and construction is at 13%. Camp
construction was also complete with 888 beds available. Long lead
equipment procurement is well advanced with the majority of
equipment forecast for arrival prior to end of CY23.
Substantial mechanical completion,
pre-commissioning and commissioning activities are expected by H1
2025 with first production expected in H2 2025 and ramp up expected
to take one year. The schedule change relates to improved
understanding of the current execution plan, the ongoing import
challenges and delays experienced in country by Allkem and it
contractors and vendors as well as an improved understanding of
regional productivity factors.
Stage 2 construction is anticipated to commence
upon receipt of applicable permits and substantial mechanical
completion of Stage 1 with Stage 2 first production approximately
2.5 - 3 years thereafter.
JAMES BAY
Spodumene Concentrate |
Québec, Canada |
Project Update
Allkem released an update to the project’s
Mineral Resources and Ore Reserves, project cost and project
economics in the announcement titled “James Bay Update Confirms
Strong Project Economics” on 25 September 2023. The results are
summarised below.
Metric |
Units |
Total |
Mineral Resource Estimate |
- |
110.2 Mt @ 1.30% Li2O |
Ore Reserve Estimate |
- |
37.3 Mt at 1.27% Li2O |
Project Life |
Years |
19 |
Annual Production Capacity |
ktpa |
311 |
Product grade |
% Li2O |
5.6 |
Pre-tax NPV @ 8% discount rate |
US$ billion |
2.9 |
OPEX |
US$/ tonne |
407 |
CAPEX |
US$ million |
381.5 |
The Total Mineral Resource increased by 173%
from the previous estimate to 110.2 Mt at 1.30% Li2O, including
54.3 Mt at 1.30% Li2O in the Indicated Category, and 55.9 Mt at
1.29% Li2O in the Inferred Category. Ore Reserve of 37.3 Mt at
1.27% Li2O provides a long life, low cost spodumene operation and
remains in line with permitting considerations.
Material ~108% increase in pre-tax NPV to US$2.9
billion with a strong internal rate of return and short payback
period. CAPEX was revised to US$381.5 million, representing a 33.8%
increase on the December 2021 FS, in line with inflationary
conditions. Cash operating costs (FOB Montreal) of US$407 per tonne
of 5.6% Li2O concentrate also reflects inflationary conditions.
Project execution
Detailed engineering continues alongside
procurement activities including ordering of key long lead items
and equipment packages (temporary camps, primary sub-station,
process equipment, etc).
Engineering and procurement progressed to 84%
completion by the end of the quarter with engineering of the
process plant package at 87%. Procurement of various equipment
(mechanical, mobile, electrical, etc) are mostly completed. The
bidding process for contract packages (including services) are
mostly completed including final negotiations in progress.
Permitting
The Impact Benefit Agreement with The Grand
Council of the Crees (Eeyou Istchee), the Cree Nation Government
and the Cree Nation of Eastmain remains in progress and has resumed
after the last approval process was paused due to a State of
Emergency declared in relation to forest fires in the region.
Comex approval (Quebec government and CREE
Nation) of the ESIA and procedural construction permitting also
remain in progress. The ESIA draft report was completed in August
by Quebec government personnel and submitted to COMEX for review
and final evaluation. Engagement remains positive with community
stakeholders including community consultations, meetings with key
Cree stakeholders and discussions with the Eastmain community
economic development branch to agree local economic benefits.
Once permits are secured, construction will
commence, and the Company will update guidance for first
production. Work is ongoing with engineering contractors to
progress alternative commencement dates and evaluate opportunities
to accelerate the construction schedule, including use of
prefabricated modules.
Drilling
A 40,000m drilling campaign commenced in late
September, 30,000m of which will target further definition of the
ore body to convert Inferred to Indicated Resources. The remainder
of the program will commence later in the calendar year, largely
targeting possible extensions to mineralisation in the East,
North-West and at depth as well as new targets identified from
geophysics.
CAUCHARI
Lithium Carbonate |
Jujuy
Province, Argentina |
Project update
Allkem released an update to Cauchari’s Mineral
Resources and Ore Reserves, project cost and project economics
which supports a 25ktpa LCE production capacity. The announcement
titled “Cauchari Mineral Resource, Ore Reserve and Project Update”
was released on 25 September 2023 and is summarised below.
Metric |
Units |
Total |
Mineral Resource Estimate |
Mt LCE |
5.95 |
Ore Reserve Estimate |
Mt LCE- |
1.13 |
Project Life |
Years |
30 |
Annual Production Capacity |
ktpa |
25 |
Pre-tax NPV @ 10% discount rate |
US$ billion |
2.52 |
OPEX |
US$/ tonne |
4,081 |
CAPEX |
US$ million |
659 |
Total Mineral Resource Estimate of 5.95 Mt LCE,
a 6% decrease from the previous estimate in 2019 due to slight
changes in mining parameters. The total Ore Reserve Estimate of
1.13 Mt LCE supports a 30-year project life based on Ore Reserves
only, a 11% increase from the previous statement due to a revised
point of reference for Ore Reserve reporting of ‘brine pumped to
the evaporation ponds.’
Pre-tax NPV increased ~200% to US$2.52 billion
from the previous study at a 10% discount rate. Cash operating
margin stayed constant at ~85%, with the increased realised price
projections being proportionally offset by increased operating
costs. Operating costs increased to US$4,081 per tonne LCE due to
material increases in the price of soda ash, lime, natural gas and
employment costs since the previous study.
CAPEX increased to US$659 million from the
previous study, for mechanical completion. Substantial mechanical
completion, pre-commissioning and commissioning activities are
expected by H1 CY27 with first production expected in H2 CY27 and
ramp up expected to take 1 year.
EXPLORATION UPDATE
3,427m of RC drilling was conducted in late
September at James Bay, incurring total drilling costs of ~CA$390k.
No exploration drilling was undertaken at Mt Cattlin during the
quarter.
LITHIUM MARKET
Demand
Demand during the quarter was somewhat softer
than expected. Procurement activity has been conservative as
customers have kept a wait-and-see approach, putting renewed
downward pressure on lithium prices. OEMs are increasing pressure
on battery makers who have not passed on their materials cost
decreases to help reduce the EV premium vs ICE vehicles to
consumers. This supports the view that the anticipated demand
uptick is merely delayed, as EV demand fundamentals remain
strong.
EV sales have continued to grow year on year,
with August showing the highest EV penetration to date in China and
US at 36% and 10% respectively and September reaching a new record
in China for EV unit sales. Global EV sales remain on track to
reach 14 million this year, with China set to account for over 8
million units. Medium to longer term demand drivers remain
resilient despite short term sentiment and volatility.
Supply
New supply sources are balancing their cash
requirements with limited profitability at current prices, while a
number of projects recently announced delays and increased capital
and operating costs. Some higher-cost production has been curtailed
and some new production delayed as a result of the lower prices,
again highlighting the risk of deficit should trade continue at
current levels.
CORPORATE AND FINANCIALS
Proposed Merger with Livent
On 10 May, Allkem and Livent announced a
definitive agreement to combine in an all-stock merger of equals to
create a leading global integrated lithium chemicals producer.
During the quarter, the following progress had
been made in relation to the Transaction:
-
Antitrust/competition and investment screening/foreign investment
regime notifications and applications or draft filings (as
applicable) were lodged in all required jurisdictions.
- All competition
and foreign investment approvals required to be obtained prior to
completion have been obtained or are expected to be received prior
to the proposed closing of the Transaction.
- Allkem expects
to dispatch the Scheme Booklet to shareholders in November 2023.
The Scheme Booklet will contain information about the Transaction,
including the basis for the Allkem Board’s recommendation, as well
as the Independent Expert’s Report. Allkem Shareholders are
encouraged to consider the Scheme Booklet in full, once it is
available, and to have regard to the disclosures included in the
Scheme Booklet when making any decision to vote for or against the
scheme proposal.
- Subject to receipt of all necessary
regulatory, shareholder and Australian Court approvals, and the
satisfaction or waiver of other closing conditions, Allkem and
Livent are currently still targeting completion of the Transaction
around the end of CY2023.
Upon closing of the all-stock merger of equals,
Allkem shareholders will own approximately 56% and Livent
shareholders will own approximately 44% of the merged entity. The
name for the merged entity will be Arcadium Lithium plc.
Annual General Meeting Allkem’s Annual General
Meeting will be held at 10:30am AWST on 8 November 2023. The Notice
of Meeting is available here.
Executive Management team
The executive team was bolstered with the
appointment of Robert Edwardes as Chief Projects Officer. Mr
Edwardes’ most recent roles were as Executive Vice President
Development at Woodside from 2012 to 2019, and Managing Director,
US & Latin America at Worley from 2008 to 2012. James Connolly
has been appointed as Chief Technical Officer.
Financial position
At 30 September 2023 group net cash5 was
US$671.7 million up US$23.3 million from 30 June 2023. Net cash
generated from operations and corporate, net of the effects of
devaluation of Argentine Peso balance, was US$204.5 million.
Expenditure during the quarter included:
- capital
expenditure of US$109.1 million and increase in working capital of
US$17.9 million;
- Naraha project
cash utilisation of US$19.4 million to fund ramp up of
operation;
- payments of
income tax of US$28.9 million; and
- merger costs
US$5.9 million.
At 30 September 2023, Allkem had available cash
of US$817.7 million. US$1.1 million and US$76.7 million have been
set aside as guarantees for the Naraha debt facility and Olaroz
expansion debt facility respectively.
This release was authorised by Mr Martin Perez de
Solay, CEO and Managing Director of Allkem Limited.
|
Allkem
LimitedABN 31 112 589 910 Level 35, 71 Eagle StBrisbane,
QLD 4000 |
Investor Relations & Media EnquiriesAndrew
Barber M: +61 418 783 701 E:
Andrew.Barber@allkem.coPhoebe LeeP: +61 7 3064
3600 E: Phoebe.Lee@allkem.co |
Connect info@allkem.co+61 7 3064
3600www.allkem.co |
|
|
|
|
IMPORTANT NOTICES
This investor ASX/TSX release
(Release) contains general information about the
Company as at the date of this Release. The information in this
Release should not be considered to be comprehensive or to comprise
all of the material which a shareholder or potential investor in
the Company may require in order to determine whether to deal in
Shares of Allkem. The information in this Release is of a general
nature only and does not purport to be complete. It should be read
in conjunction with the Company’s periodic and continuous
disclosure announcements which are available at allkem.co and with
the Australian Securities Exchange (ASX)
announcements, which are available at www.asx.com.au.
Forward Looking Statements
Forward-looking statements are based on current
expectations and beliefs and, by their nature, are subject to a
number of known and unknown risks and uncertainties that could
cause the actual results, performances and achievements to differ
materially from any expected future results, performances or
achievements expressed or implied by such forward-looking
statements, including but not limited to, the risk of further
changes in government regulations, policies or legislation; the
risks associated with the continued implementation of the merger
between the Company and Galaxy Resources Ltd, risks that further
funding may be required, but unavailable, for the ongoing
development of the Company’s projects; fluctuations or decreases in
commodity prices; uncertainty in the estimation, economic
viability, recoverability and processing of mineral resources;
risks associated with development of the Company Projects;
unexpected capital or operating cost increases; uncertainty of
meeting anticipated program milestones at the Company’s Projects;
risks associated with investment in publicly listed companies, such
as the Company; and risks associated with general economic
conditions.Subject to any continuing obligation under applicable
law or relevant listing rules of the ASX, the Company disclaims any
obligation or undertaking to disseminate any updates or revisions
to any forward-looking statements in this Release to reflect any
change in expectations in relation to any forward-looking
statements or any change in events, conditions or circumstances on
which any such statements are based. Nothing in this Release shall
under any circumstances (including by reason of this Release
remaining available and not being superseded or replaced by any
other Release or publication with respect to the subject matter of
this Release), create an implication that there has been no change
in the affairs of the Company since the date of this Release.
Not for release
or distribution in the
United States
This announcement has been prepared for
publication in Australia and may not be released to U.S. wire
services or distributed in the United States. This announcement
does not constitute an offer to sell, or a solicitation of an offer
to buy, securities in the United States or any other jurisdiction,
and neither this announcement or anything attached to this
announcement shall form the basis of any contract or
commitment.
Competent Person Statement
Mt CattlinAny information in
this announcement that relates to Mt Cattlin’s Mineral Resources
and Ore Reserve is extracted from the report entitled “Allkem
confirms material growth profile underpinned by 40 Mt Resource”
released on 25 September 2023 which is available to view
on www.allkem.co and www.asx.com.au. The Company
confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcements and that all material assumptions and technical
parameters underpinning the Mineral Resources and Ore Reserve
estimates in the relevant market announcement continue to apply and
have not materially changed. The Company confirms that the form and
context in which the Competent Person’s findings are presented have
not been materially modified from the original market
announcement.
Information in this announcement relating to Mt
Cattlin scientific or technical information, production targets or
forecast financial information derived from a production target is
extracted from the report titled “Allkem confirms material growth
profile underpinned by 40 Mt Resource” released on 25 September
2023 available at www.allkem.co and www.asx.com.au and the
technical report entitled “Mt Cattlin Stage 4 Expansion Project”
(Mt Cattlin Technical Report) which has been
reviewed and approved by Albert Thamm, F.Aus.IMM (who is an
employee of Galaxy Resources Pty. Ltd) as it relates to geology,
drilling, sampling, exploration, QA/QC and mineral resources and
Daniel Donald F.Aus.IMM (an employee of Entech Pty Ltd) as it
relates to mining methods, Ore Reserves, site infrastructure,
capital cost, operating cost estimates, mining cost, financial
modelling and economic analysis in accordance with National
Instrument 43-101 – Standards for Disclosure for Mineral Projects.
The Mt Cattlin Technical Report is available for review under
Allkem’s profile on SEDAR at www.sedarplus.ca. The Company confirms
that all the material assumptions underpinning the scientific or
technical information, production targets or the forecast financial
information derived from a production target in the original market
announcement continue to apply and have not materially changed.
James BayAny information in
this announcement that relates to James Bay’s Mineral Resources and
Ore Reserves is extracted from the report entitled “James Bay
Update Confirms Strong Project Economics” released on 25 September
2023 which is available to view
on www.allkem.co and www.asx.com.au. The Company
confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcements and that all material assumptions and technical
parameters underpinning the Mineral Resources and Ore Reserve
estimates in the relevant market announcement continue to apply and
have not materially changed. The Company confirms that the form and
context in which the Competent Person’s findings are presented have
not been materially modified from the original market
announcement.
Any information in this announcement relating to
James Bay scientific or technical information, production targets
or forecast financial information derived from a production target
is extracted from the ASX Announcement entitled “James Bay Update
Confirms Strong Project Economics” released on 25 September 2023
which is available to view on www.allkem.co and www.asx.com.au and
from the technical report entitled “James Bay Project - Feasibility
Study Update” (Technical Report) which has been reviewed and
approved by Luke Evans, P.Eng. (SLR Consulting (Canada) Ltd.) as it
relates to property, geology, drilling, sampling, exploration,
QA/QC and mineral resources: Joel Lacelle, P. Eng. (G-Mining
Services Inc.); as it relates to site infrastructure and capital
cost estimate: Normand Lecuyer, P. Eng. (SLR Consulting (Canada)
Ltd.); as it relates to mining methods, mining cost, mining opex,
financial modelling and economic analysis: Jeremy Ison, P.Eng.
(Wave International); as it relates to mineral processing and
related infrastructures: Darrin Johnson, P. Eng. (WSP Canada Ltd.);
as it relates to waste rock and tailings management related
infrastructures: Joao Paulo Lutti, Eng. (WSP Canada Ltd); as it
relates to water management infrastructures: Pierre Groleau Eng.
(WSP Canada Inc.); as it relates to environmental and permitting in
accordance with National Instrument 43-101 – Standards for
Disclosure for Mineral Projects. The Technical Report is available
for review under the Company’s profile on SEDAR at www.sedar.com.
The Company confirms that all the material assumptions underpinning
the scientific or technical information, production targets or the
forecast financial information derived from a production target in
the original market announcement continue to apply and have not
materially changed.
Olaroz Any information in this
announcement that relates to Olaroz’s Mineral Resource Estimate is
extracted from the report entitled “Olaroz Mineral Resource and
Stage 1&2 Operations Update” released on 25 September 2023
which is available to view
on www.allkem.co and www.asx.com.au. The Company
confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcements and that all material assumptions and technical
parameters underpinning the Mineral Resources estimates in the
relevant market announcement continue to apply and have not
materially changed. The Company confirms that the form and context
in which the Competent Person’s findings are presented have not
been materially modified from the original market announcement.
Any information in this announcement relating to
Olaroz scientific or technical information, production targets or
forecast financial information derived from a production target is
extracted from the ASX Announcement entitled “Olaroz Mineral
Resource and Stage 1&2 Operations Update” released on 25
September 2023 which is available to view on www.allkem.co and
www.asx.com.au. The Company confirms that all the material
assumptions underpinning the scientific or technical information,
production targets or the forecast financial information derived
from a production target in the original market announcement
continue to apply and have not materially changed. The scientific
and technical information contained in this announcement has been
reviewed and approved by, Murray Brooker (Hydrominex Geoscience Pty
Ltd), as it relates to geology, modelling, and Mineral Resource
estimates; Michael Gunn, BSc. Chemical Engineering (Gunn
Metallurgy), as it relates to processing, facilities,
infrastructure, project economics, capital and operating cost
estimates. The scientific and technical information contained in
this release will be supported by a technical report to be prepared
in accordance with National Instrument 43-101 – Standards for
Disclosure for Mineral Projects. The Technical Report will be filed
within 45 days of the original release and will be available for
review under the Company’s profile on SEDAR at www.sedar.com.
Sal de Vida Any information in
this announcement that relates to Sal de Vida’s Mineral Resource
Estimate and Ore Reserve is extracted from the report entitled “Sal
de Vida Delivers Improved Economics, Resource, Reserves” released
on 25 September 2023 which is available to view
on www.allkem.co and www.asx.com.au. The Company
confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcements and that all material assumptions and technical
parameters underpinning the Mineral Resources and Ore Reserve
estimates in the relevant market announcement continue to apply and
have not materially changed. The Company confirms that the form and
context in which the Competent Person’s findings are presented have
not been materially modified from the original market
announcement.
Any information in this announcement relating to
Sal de Vida scientific or technical information, production targets
or forecast financial information derived from a production target
is extracted from the ASX Announcement entitled “Sal de Vida
Delivers Improved Economics, Resource, Reserves” released on 25
September 2023 which is available to view on www.allkem.co and
www.asx.com.au. The Company confirms that all the material
assumptions underpinning the scientific or technical information,
production targets or the forecast financial information derived
from a production target in the original market announcement
continue to apply and have not materially changed. The scientific
and technical information contained in this announcement has been
reviewed and approved by, Michael Rosko, MSc. Geology (Montgomery
and Associates) and Brandon Schneider, MSc. Geological Sciences
(Montgomery and Associates), as it relates to geology, modelling,
and resource and reserve estimates; Michael Gunn, BSc. Chemical
Engineering (Gunn Metals), as it relates to processing, facilities,
infrastructure, project economics, capital and operating cost
estimates. The scientific and technical information contained in
this release will be supported by a technical report to be prepared
in accordance with National Instrument 43-101 – Standards for
Disclosure for Mineral Projects. The Technical Report will be filed
within 45 days of this release and will be available for review
under the Company’s profile on SEDAR at www.sedar.com.
Cauchari Any information in
this announcement that relates to Cauchari’s Mineral Resource
Estimate and Ore Reserve is extracted from the report entitled
“Cauchari Mineral Resource, Ore Reserve and Project Update”
released on 25 September 2023 which is available to view
on www.allkem.co and www.asx.com.au. The Company
confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcements and that all material assumptions and technical
parameters underpinning the Mineral Resources and Ore Reserve
estimates in the relevant market announcement continue to apply and
have not materially changed. The Company confirms that the form and
context in which the Competent Person’s findings are presented have
not been materially modified from the original market
announcement.
Any information in this announcement relating to
Cauchari scientific or technical information, production targets or
forecast financial information derived from a production target is
extracted from the ASX Announcement entitled “Cauchari Mineral
Resource, Ore Reserve and Project Update” released on 25 September
2023 which is available to view on www.allkem.co and
www.asx.com.au. The Company confirms that all the material
assumptions underpinning the scientific or technical information,
production targets or the forecast financial information derived
from a production target in the original market announcement
continue to apply and have not materially changed. The scientific
and technical information contained in this announcement has been
reviewed and approved by Frederik Reidel, CPG (Atacama Water SpA)
as it relates to geology, modelling, and Mineral Resource and Ore
Reserve estimates; Marek Dworzanowski, FSAIMM, FIMMM, Chartered
Engineer with the Engineering Council of the United Kingdom
registration (Metallurgical Engineer, Independent Consultant), as
it relates to processing, facilities, infrastructure, project
economics, capital and operating cost estimates. The scientific and
technical information contained in this release will be supported
by a technical report to be prepared in accordance with National
Instrument 43-101 – Standards for Disclosure for Mineral Projects.
The Technical Report will be filed within 45 days of the original
release and will be available for review under the Company’s
profile on SEDAR at www.sedar.com.
APPENDIX 1 – GROUP METRICS AND RESOURCE
SUMMARY
Allkem Group Key Metrics
Asset |
Location |
Production capacity conc. (‘000)
t |
Production7 Capacity LCE
(‘000) t |
Operating cost US$/t conc. |
Development CapexUS$M |
NPV2(pre-tax)US$B |
James Bay |
Quebec, Canada |
311 |
39 |
407 |
382 |
2.9 |
Mt Cattlin |
Western Australia |
220 |
27 |
850 |
80 |
1.0 |
Total Hard Rock |
531 |
66 |
590 |
|
3.9 |
|
|
|
Production Capacity LCE (‘000) t |
Operating cost US$/t LCE |
Development CapexUS$M |
NPV8(pre-tax)US$B |
Sal de Vida |
Catamarca, Argentina |
|
45 |
4,003 |
1,031 |
5.5 |
Olaroz |
Jujuy, Argentina |
|
42.5 |
4,149 |
- |
7.0 |
Cauchari |
Jujuy, Argentina |
|
25 |
4,081 |
659 |
2.5 |
Total Brine |
|
113 |
4,075 |
1,690 |
15 |
Total Allkem (LCE
basis)9 |
179 |
|
2,152 |
18.9 |
Allkem Group Total
Resources10
Asset |
Location |
Ore Tonnes (Mt) |
Grade Li2O
(%) |
Contained (‘000) t LCE |
James Bay |
Quebec, Canada |
110.2 |
1.3 |
3,540 |
Mt Cattlin |
Western Australia |
12.1 |
1.3 |
390 |
Total Hard RockResource |
122.3 |
1.3 |
3,930 |
|
|
|
|
|
|
|
Brine volume (m3) |
Average Li mg/l |
Contained (‘000) t LCE |
Sal de Vida |
Catamarca, Argentina |
1.9 x 109 |
724 |
7,172 |
Olaroz |
Jujuy, Argentina |
6.7 x 109 |
636 |
22,630 |
Cauchari |
Jujuy, Argentina |
2.2 x 109 |
475 |
5,950 |
Total Brine Resource |
|
|
35,752 |
Total Allkem Resource (LCE) |
|
|
39,682 |
1 All figures are unaudited and contain non-IFRS metrics and
exclude Borax as a discontinued operation. Gross operating cash
margin is calculated as revenue less cash cost of goods sold,
freight and insurance (and excludes corporate and non-operating
costs). 2 All figures 100% Olaroz Project basis. 3 Excludes lithium
carbonate by-product revenue of US$4.6 million4 “FOB” (Free On
Board) excludes insurance and freight charges included in “CIF”
(Cost, Insurance, Freight) pricing. Therefore, the Company’s FOB
reported prices are net of freight (shipping), insurance and sales
commission.5 Revenue excludes tantalum sales and low grade
spodumene concentrate (US$2.7 million) from Mt Cattlin.6Net cash
includes Naraha cash balances and project loans at 75% interest,
and Olaroz cash deposits to secure project borrowing and deposits
that are held as guarantees. Related party loans are excluded. 7
Spodumene concentrate production amounts shown as metrics tons of
spodumene at a Li2O% grade. Conversion to LCE is 0.02552 metric
tons of lithium metal to 1 metric ton of spodumene concentrate at
5.5% Li2O. Conversion to LCE is 0.02784 metric tons of lithium
metal to 1 metric ton of spodumene concentrate at 6.0% Li2O.8 NPV
figures are from each project ASX release utilising Wood McKenzie
pricing forecasts. Net Present Value (“NPV”) for
Hard Rock assets at 8% real discount rate. NPV for Brine assets at
10% real discount rate9 Production is on 100% basis, attributable
production is 165ktpa10 Resources are presented as the sum of
Measured, Indicated and Inferred Resource and are reported in line
with the JORC Code (2012). The confidence categories assigned under
the JORC Code are comparable to the confidence categories in the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Definition Standards on Mineral Resources and Mineral Reserves, May
2014. The reader should be cautioned that under NI 43-101
guidelines, Inferred Mineral Resources cannot be grouped with
Measured and Indicated categories and that the JORC code is
considered an “accepted foreign code” as described in Part 7 of the
NI 43-101 Standards of Disclosure. See individual project releases
dated as per this release for further information
APPENDIX 2 – RESOURCES &
RESERVES
Mt Cattlin
Mt Cattlin Ore Reserve Update at 30 June
2023
Classification |
Location |
Ore Tonnes (Mt) |
Grade Li2O
(%) |
Grade
Ta2O5
(ppm) |
Contained Metal (‘000) t
Li2O) |
Contained Metal (‘000) lbs
Ta2O5 |
Proved |
In-situ |
0.2 |
0.9 |
120 |
1 |
45 |
Probable |
In-situ |
5.2 |
1.3 |
130 |
69 |
1,500 |
|
Stockpiles |
1.8 |
0.8 |
95 |
13 |
396 |
Total Ore Reserve |
7.1 |
1.2 |
120 |
84 |
1,900 |
Notes: Ore Reserves mine designs were conducted on a 0.4% Li2O
cut-ff grade and Ore Reserves are reported above a marginal cut-off
grade of 0.3 % Li2O. Estimates have been rounded to a maximum of
two significant figures, thus sum of columns may not equal.
Mt Cattlin Mineral Resource Update as at
30 June 2023, depleted for mining
Classification |
Location |
Ore Tonnes (Mt) |
Grade Li2O
(%) |
Grade
Ta2O5
(ppm) |
Contained Metal (‘000) t
Li2O) |
Contained Metal (‘000) lbs
Ta2O5 |
Contained (‘000) t LCE |
Measured |
In-situ |
0.2 |
1.0% |
172 |
2 |
75 |
5 |
Indicated |
In-situ |
8.8 |
1.4% |
165 |
121 |
3,197 |
299 |
Inferred |
In-situ |
1.3 |
1.3% |
181 |
17 |
518 |
42 |
Indicated |
Stockpiles |
1.8 |
0.8% |
95 |
13 |
396 |
32 |
Total Mineral Resource |
12.1 |
1.3% |
167 |
153 |
4,186 |
378 |
Notes: Global Insitu Mineral Resource as at 30 June, 2023. COG
0.3% lithia. Depleted for mining 1.2Mt @1.2% lithia January-June,
2023. ‘Inferred In-situ’ and ‘Indicated stockpiles’ have been
edited from ASX Release “Allkem confirms material growth profile
underpinned by 40 Mt Resource” published on 25 August, 2023 which
contained a typographical error and showed the numbers juxtaposed
with the alternate description.
Mt Cattlin Mineral Resource Update as at
30 June 2023, depleted for mining, within a RPEEE shell USD
1,500
Classification |
Location |
Ore Tonnes (Mt) |
Grade Li2O
(%) |
Grade
Ta2O5
(ppm) |
Contained Metal (‘000) t
Li2O) |
Contained Metal (‘000) lbs
Ta2O5 |
Measured |
In-situ |
0.2 |
1.0 |
171 |
2 |
44 |
Indicated |
In-situ |
7.2 |
1.4 |
147 |
98 |
2,221 |
Inferred |
In-situ |
0.2 |
1.1 |
133 |
2 |
48 |
Indicated |
Stockpiles |
1.8 |
0.8 |
95 |
13 |
396 |
Total Mineral Resource |
9.4 |
1.2 |
137 |
115 |
2,700 |
Notes: RPEEE optimisations were conducted on a 0.4% Li2O cut-ff
grade and are reported above a marginal cut-off grade of 0.3 %
Li2O. Estimates have been rounded to a maximum of two significant
figures, thus sum of columns may not equal
Mt Cattlin Mineral Resources Update as
at 30 June 2023, depleted for mining, exclusive of Ore
Reserves
Classification |
Location |
Ore Tonnes (Mt) |
Grade Li2O
(%) |
Grade
Ta2O5
(ppm) |
Contained Metal (‘000) t
Li2O) |
Contained Metal (‘000) lbs
Ta2O5 |
Measured |
In-situ |
0.1 |
1.0 |
179 |
1.0 |
39 |
Indicated |
In-situ |
3.2 |
1.4 |
201 |
44.8 |
1417 |
Inferred |
In-situ |
0.6 |
1.1 |
207 |
6.6 |
273 |
Total Mineral Resource |
3.9 |
1.3 |
201 |
52.4 |
1,700 |
Notes: Mineral Resources, exclusive of Ore Reserves are reported
above a marginal cut-off grade of 0.3 % Li2O. Estimates have been
rounded to a maximum of two significant figures, thus sum of
columns may not equal. Not constrained by the RPEEE USD1,500
shell.
James Bay
James Bay Mineral Resource Estimate –
Effective date 30 June 2023
Category |
Tonnage |
Grade |
Contained lithium oxide/LCE |
Mt |
% Li2O |
(‘000) t
Li2O |
(‘000) t LCE |
Measured |
- |
- |
- |
- |
Indicated |
54.3 |
1.30 |
706 |
1,746 |
Measured + Indicated |
54.3 |
1.30 |
706 |
1,746 |
Inferred |
55.9 |
1.29 |
724 |
1,790 |
Total Mineral Resource |
110.2 |
1.30 |
1,430 |
3,537 |
- The Independent Competent Person, as defined by the JORC Code
2012, responsible for the preparation of this MRE is Mr. Luke
Evans, P.Eng, a full-time employee of SLR. Mr. Evans is a member of
L’Ordre des Ingénieurs du Québec, a Recognised Professional
Organisation defined by the JORC Code 2012. The effective date of
the mineral resource is the 30th June 2023 (erroneously identified
as Aug. 9, 2023 in the earlier news release).
- The Mineral Resource Estimate has been reported within a
conceptual pit shell at a cut-off grade of 0.50% Li2O
- The Mineral Resources are Inclusive of Ore Reserves.
- The conceptual pit shell used to constrain the MRE has been
defined using a spodumene concentrate price of US$1,500 per tonne,
an exchange rate of CAD:US$ of 1.33, a total ore-based cost of
CAD33.92 per tonne, a mining cost of CAD4.82 per tonne, a
concentrate transport cost of CAD86.16 per tonne, and a
metallurgical recovery of 70.1%.
- The statements of Mineral Resources conform to the Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (the JORC Code) 2012 edition.
- Mineral Resources are not Mineral Reserves, as they do not
demonstrate economic viability.
- The Competent Persons are not aware of any problem related to
the environment, permits or mining titles, or related to legal,
fiscal, socio‐political, commercial issues, or any other relevant
factor that could have a significant impact on this MRE.
- The number of tonnes has been rounded to the nearest 100,000
tonnes, with any discrepancies observed in the totals due to
rounding effects.
- All tonnages reported are dry metric tonnes.
James Bay Ore Reserve – Effective date
30 June 2023
Category |
Tonnage |
Grade |
Contained Metal |
Mt |
% Li2O |
(‘000) t
Li2O |
Proven |
- |
- |
- |
Probable |
37.3 |
1.27 |
474 |
Proven + Probable |
37.3 |
1.27 |
474 |
- The Independent Competent Person, as
defined by the JORC Code 2012, responsible for the preparation of
the Ore Reserve estimate is Mr. Normand Lecuyer, P.Eng., an
employee of SLR. Mr. Lecuyer is a member of L’Ordre des Ingénieurs
du Québec (License No. 34914), a Recognised Professional
Organisation defined by the JORC Code 2012. Effective date of the
estimate is June 30th, 2023.
- Ore Reserves are estimated using the
following metal prices (Li2O Conc = US$ 1,500/t Li2O at
6.0% Li2O) and an exchange rate of CAD/US$ 1.33.
- A minimum mining width of 5 m was
used.
- A cut-off grade of 0.62% Li2O was
used.
- The bulk density of ore is variable,
is outlined in the geological block model, and averages
2.7 g/cm3.
- The average strip ratio is 3.6:1.
- The average mining dilution factor is
8.7% at 0.42% Li2O.
- Numbers may not add due to
rounding
Olaroz
Olaroz Mineral Resource Estimate at August
2023
Category |
Brine volume |
Average Li |
In Situ Li |
Li2CO3
Equivalent |
Li2CO3
Variance to March 2023 |
|
m3 |
mg/l |
tonnes |
Tonnes |
% |
Measured |
3.3 x 109 |
659 |
2,170,000 |
11,540,000 |
53 |
% |
Indicated |
1.2 x 109 |
592 |
720,000 |
3,840,000 |
-46 |
% |
Measured & Indicated |
4.5 x 109 |
641 |
2,890,000 |
15,380,000 |
5 |
% |
Inferred |
2.2 x 109 |
609 |
1,360,000 |
7,250,000 |
21 |
% |
Total |
6.7 x 109 |
636 |
4,250,000 |
22,630,000 |
10 |
% |
- The Competent Person(s) for these
Mineral Resources estimate is Hydrominex Geoscience for Olaroz
- Comparison of values may not add up
due to rounding or the use of averaging methods
- Lithium is converted to lithium
carbonate (Li2CO3) with a conversion factor of 5.323
- The cut-off grade used to report
Olaroz Mineral Resources is 300 mg/l
- Mineral Resources that are not Ore
Reserves do not have demonstrated economic viability, there is no
certainty that any or all of the Mineral Resources can be converted
into Ore Reserves after application of the modifying factors
|
Sal de Vida
Sal de Vida Mineral Resource Estimate at
August 2023
Category |
Brine volume |
Average Li |
In Situ Li |
Li2CO3
Equivalent |
Li2CO3
Variance to 2022 |
|
m3 |
mg/l |
tonnes |
Tonnes |
% |
Measured |
8.8 x 108 |
752 |
660,595 |
3,516,000 |
41 |
% |
Indicated |
7.6 x 108 |
742 |
564,375 |
3,004,000 |
-20 |
% |
Measured & Indicated |
1.6 x 109 |
747 |
1,224,970 |
6,520,000 |
5 |
% |
Inferred |
2.2 x 108 |
556 |
122,497 |
652,000 |
5 |
% |
Total |
1.9 x 109 |
724 |
1,347,467 |
7,172,000 |
5 |
% |
Note: Cut-off grade: 300 mg/L lithium. The reader is cautioned that
Mineral Resources are not Ore Reserves and do not have demonstrated
economic viability. Values are inclusive of Ore Reserve estimates,
and not “in addition to”. |
Sal de Vida Ore Reserve Estimate at
August 2023
Category |
Wellfield |
Time Period |
Li Total Mass |
Li2CO3
Equivalent |
Li2CO3
Variance to 2022 |
|
|
years |
tonnes |
tonnes |
% |
Proved |
Stage I East |
1-7 |
30,541 |
163,000 |
81 |
% |
Proved |
Stage II Expansion |
3-9 |
53,046 |
282,000 |
57 |
% |
Total Proved |
|
1-9 |
83,587 |
445,000 |
65 |
% |
Probable |
Stage I East |
8-40 |
146,520 |
780,000 |
53 |
% |
Probable |
Stage II Expansion |
10-40 |
236,947 |
1,261,000 |
31 |
% |
Total Probable |
|
8-40 |
383,467 |
2,041,000 |
39 |
% |
Total Proved and Probable |
40 |
467,054 |
2,486,000 |
43 |
% |
Note: Assumes 300 mg/L Li cut-off grade
Cauchari
Cauchari Mineral Resource Estimate at
August 2023
Category |
Brine volume |
Average Li |
In Situ Li |
Li2CO3
Equivalent |
Li2CO3
Variance to 2019 |
|
m3 |
mg/l |
tonnes |
Tonnes |
% |
Measured |
6.5 x 108 |
527 |
345,000 |
1,850,000 |
0% |
Indicated |
1.1 x 109 |
452 |
490,000 |
2,600,000 |
-12% |
Measured & Indicated |
1.8 x 109 |
476 |
835,000 |
4,450,000 |
-7% |
Inferred |
6.0 x 108 |
473 |
285,000 |
1,500,000 |
0% |
Total |
2.4 x 109 |
475 |
1,120,000 |
5,950,000 |
-6% |
- The Competent Person(s) for these
Mineral Resources and Ore Reserves estimate is Atacama Water
- Comparison of values may not add up
due to rounding or the use of averaging methods
- Lithium is converted to lithium
carbonate (Li2CO3) with a conversion factor of 5.323
- The cut-off grade used to report
Cauchari Mineral Resources is 300 mg/l
- Mineral Resources that are not Ore
Reserves do not have demonstrated economic viability, there is no
certainty that any or all of the Mineral Resources can be converted
into Ore Reserves after application of the modifying factors
|
Cauchari Project Reserve Estimate at 30
June 2023
Category |
Year |
Brine Vol
(Mm3) |
Average Lithium Grade (mg/L) |
Lithium (kt) |
Li2CO3
Equivalent (kt) |
Proved |
1-7 |
76 |
571 |
43 |
231 |
Probable |
8-30 |
347 |
485 |
169 |
897 |
Total |
1-30 |
423 |
501 |
212 |
1,128 |
- The Competent
Person(s) for these Mineral Resources and Ore Reserves estimate is
Atacama Water.
- Comparison of
values may not add up due to rounding or the use of averaging
methods.
- Lithium is
converted to lithium carbonate (Li2CO3) with a conversion factor of
5.323.
- The cut-off
grade used to report Cauchari Ore Reserves is 300 mg/l.
- Mineral
Resources that are not Ore Reserves do not have demonstrated
economic viability, there is no certainty that any or all of the
Mineral Resources can be converted into Ore Reserves after
application of the modifying factors.
- The Lithium Ore
Reserve Estimate represents the lithium contained in the brine
produced by the wellfields as input to the evaporation ponds. Brine
production initiates in Year 1 from wells located in the NW Sector.
In Year 9, brine production switches across to the SE Sector of the
Project.
- Approximately
25% of M+I Mineral Resources are converted to Total Ore
Reserves.
- Potential
environmental effects of pumping have not been comprehensively
analysed at the PFS stage. Additional evaluation of potential
environmental effects will be done as part of the next stage of
evaluation.
- Additional
hydrogeological test work will be required in the next stage of
evaluation to adequately verify the quantification of hydraulic
parameters in the Archibarca fan area and in the Lower Sand unit as
indicated by the sensitivity analysis carried out on the model
results. Ore Reserves are derived from and included within the
M&I Mineral Resources in the Mineral Resource.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/d6d3053d-3284-4bfb-ba11-79ea824d67b3
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