R/€ = 16.29 Change: -0.01
R/$ = 14.37 Change: 0.03
Au 1239.79 $/oz Change: 1.72
Pt 785.90 $/oz Change: -6.63
 
 
R/€ = 16.29 Change: -0.01
R/$ = 14.37 Change: 0.03
Au 1239.79 $/oz Change: 1.72
Pt 785.90 $/oz Change: -6.63
 
 
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Sal de Vida to cost more - Galaxy

15th May 2018 BY: Esmarie Iannucci
Creamer Media Senior Deputy Editor: Australasia

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.

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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%

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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. 

EDITED BY: Creamer Media Reporter
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