Announcement Date: 2022-04-04
Announcement Type: Deposit Estimation
Announcement Code: NI43-101
Company name: Allkem Ltd.
Project name: Olaroz
Location: Argentina
Commodities: Lithium
Highlight: Updated Resource Estimate for Project
Resources: only available to subscribers
CP/QP: only available to subscribers
Announcement summary: The total capital cost estimate is US$376 million, consisting of US$347 million in direct capital costs and US$29 million in indirect capital costs. This represents an increase over the US$330 million estimated in late 2019. As previously announced, this is attributable to additions to the project scope (camp, roads and water supply increases) and the lengthy delays incurred due to Covid-19. Funding for Stage 2 comprises a US$180 million project finance facility with the balance provided by shareholder loans (75% AKE, 25% Toyota Tsusho Corporation). Operating Costs Site operating cash costs for the LOM are estimated at US$3,206/t. This cost represents an improvement on pre-covid estimates due to more favourable consumable unit rates. The operating cost estimate for the Stage 2 expansion was prepared by Worley in collaboration with Allkem. The cost estimate excludes indirect costs such as distributed corporate head office costs for corporate management and administration, marketing and sales, exploration, general project and technical developments; and other centralised corporate services. The current project execution schedule considers achieving full production beginning CY24 and average annual technical grade lithium carbonate production is anticipated to be 25,000 t/yr, for Stage 2 only from an average annual wellfield head grade of 0.067% Lithium. A 40 year life has been assumed for the project
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