Anson Resources Ltd (ASX:ASN) has demonstrated robust economic and ESG-related metrics for the planned phase 1 development of Paradox Lithium Project in Utah, USA, with a definitive feasibility study (DFS), confirming the project’s potential to become a major player in the US lithium carbonate industry.
As a result of the positive DFS, shares have been as much as 28.82% higher in the first hour of trading to A$0.38, a new record high.
The key financial metrics are:
- Low-cost operation with expected revenues of US$5 billion over forecast 23 years of operation.
- Annual production of high purity lithium carbonates up to 13,074 tonnes.
- Pre-tax net present value (NPV7) of US$1.3 billion
- Payback period (post commissioning) of two years, with a pre-tax internal rate of return (IRR) of 47%.
- Estimated capital expenditure of US$495 million
Confirms technical and financial viability
“We are very excited to deliver the Paradox Lithium Project Phase 1 DFS to market,” Anson Resources executive chair Bruce Richardson said.
“The DFS confirms the technical and financial viability of a major new source of high purity lithium carbonate available for the rapidly growing US market.
“The project delivers industry-leading ESG credentials based on direct lithium extraction utilising Sunresin technology using lower energy and water consumption, and with spent brine being reinjected back into the Paradox.
“Significantly, there remains material upside beyond the DFS announced today based on future mineral resource upgrades associated with the recently completed drilling campaign at Cane Creek and the future Western Expansion drilling campaign, as well as incorporating bromine production into stage 2.”
Anson is targeting 2025 for the beginning of lithium carbonate production at Paradox.
Phase 2 of development at the project will involve ‘substantial’ increases to lithium production capacity, as well as the addition of bromine production.
The company expects to be able to fund phase 2 construction and development with the free cash flow generated from production in phase 1 operation.