DJ Cadence Minerals PLC PFS estimates a $540m NPV at the Cinovec Project
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
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.
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April 19, 2017 03:18 ET (07:18 GMT)