Cadence Minerals PLC PFS estimates a $540m NPV at the Cinovec Project (6993C)
April 19 2017 - 3:18AM
UK Regulatory
TIDMKDNC
RNS Number : 6993C
Cadence Minerals PLC
19 April 2017
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
Pre-Feasibility Study estimates a US$540m net present value at
the Cinovec Lithium & Tin Project.
Cadence (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that
European Metals Holdings Limited ("EMH") has today published a
summary of the Pre-Feasibility Study ("PFS") for the development of
the Cinovec Lithium and Tin Project (the "Project") in the Czech
Republic. The results confirm Cadence's belief that the Project
could represent a significant low cost lithium producer supplying a
rapidly growing market and represents the largest lithium resource
in Europe and one of the largest undeveloped tin resources in the
world.
Cadence holds a 20.76% economic interest in Cinovec, via its
interest in EMH. The full EMH release is available at:
http://europeanmet.com/assets/AIM__-_19_April_2017_-_EMH_Completion_of_PFS_-_Final.pdf
.
Highlights from the EMH Release:
-- Excellent Project Economics:
o Net Present Value (NPV): $540 M (post tax, 8%)
o Internal Rate of Return (IRR): 21 % (post tax)
o Net overall cost of production: $3,483 /tonne Li2CO3
o Total Capital Cost: $393 M
-- Strategic Location, unique advantages & Long term mine life:
o 21 year mine life
o Annual production of Battery Grade Lithium Carbonate: 20,800
tonnes
o By-product credits of tin, potash and tungsten
o Low cost access to extensive existing infrastructure and grid
power
o The deposit lies in a stable jurisdiction, located centrally
to the rapidly expanding electric vehicle industry, which is
forecast to be the main driver behind increasing lithium
consumption
Commenting, Kiran Morzaria, Chief Executive Officer of Cadence,
said:
"We are very pleased with the outcome of the PFS for Cinovec.
These confirm our view that this Project has the potential to
become a highly profitable and significant supplier of battery
grade lithium carbonate.
With a potential lower half production cost, a long mine life,
and its proximal location in central Europe to the several of the
continent's vehicle manufacturers, the Cinovec project represents
precisely the type of asset that we believe to have long term
competitive advantages in the rapidly expanding lithium compound
market
We look forward to further updates from the project over the
coming year"
For further information please
contact
Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD
& Broker) +44 (0) 207 220 1666
James Joyce
James Bavister
Square1 Consulting +44 (0) 207 929 5599
David Bick
Brian Alexander
Qualified Person
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.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world.
The planet needs rechargeable batteries on a global scale -
upcoming supersized passenger vehicles, lorries and buses - require
lithium and other technology minerals to power their cells. Cadence
is helping find these minerals in new places and extracting them in
new ways, which will meet the demand of this burgeoning market.
With over GBP35 million vested in key assets globally, Cadence is
helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining
projects. Its primary strategy is taking significant economic
stakes in upstream exploration and development assets within
strategic metals. We identify assets that have strategic cost
advantages that are not replicable, with the aim of achieving lower
quartile production costs. The combination of this approach and
seeking value opportunities allows us to identify projects capable
of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing,
fund management and deal structuring knowledge and experience, that
is supported by access to key marketing, political and industry
contacts. These resources are leveraged not only in our investment
decisions but also in continuing support of our investments,
whether it be increasing market awareness of an asset, or advising
on product mix or path to production. Cadence Mineral's goal is to
assist management to rapidly develop the project up the value curve
and deliver excellent returns on its investments.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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