Perth-based Galaxy Resources has released an updated feasibility study for its highly prospective Sal de Vida lithium-potash project in Argentina.
Updated results show the site hosts a JORC-compliant reserve estimate of 1.1Mt of lithium carbonate equivalent (LCE) and 4.3Mt of potash (potassium chloride), with potential annual production of 25,000t of LCE and 94,000t of potash.
The company has presented a revised post-tax net present value of $US1.48 billion ($1.98 billion) for the project, an increase from the previously cited $US1.41 billion figure.
Galaxy also reported that the project had the potential to generate average annual revenues of $US360 million and average EDITDA (earnings before income tax, depreciation and amortisation) of $US270 million.
Capital costs are now projected at $474 million, up on the $367 million figure cited in the previous feasibility study from 2016.
Last year, Galaxy raised $61 million to help fund development projects in Argentina and Canada, including the Sal de Vida project.
Galaxy has appointed JP Morgan Australia as a financial advisor to assist in strategic partnership and offtake opportunities to advance development at Sal de Vida.
Commenting, Galaxy managing director Anthony Tse said that the company was very pleased that the revisions to the project’s economics reinforced its status as a “world-class asset”.