Atlantic Lithium Granted Mining Lease for Ewoyaa Lithium Project in Ghana

Shares Surge as Production Set to Begin

Shares of Atlantic Lithium experienced a significant boost after the mining company announced that it has been granted a mining lease for its Ewoyaa lithium project in Ghana. The lease was awarded by the country’s ministry of lands and natural resources, allowing Atlantic Lithium to proceed with production.

As of 0709 GMT, shares had risen by 8.7%, or 2.3 pence, reaching 28.7 pence. Earlier in the day, the shares reached a high of 30.36 pence at market open.

Exclusive Rights for Mining and Production

The Africa-focused lithium exploration and development company revealed on Friday that the mining lease provides exclusive rights for mining and production activities in the designated area. The initial lease period lasts for 15 years, with the opportunity for renewal in accordance with legislation.

Strong Profitability Potential

According to Atlantic Lithium, the terms of the mining lease indicate a strong potential for commercial viability and profitability. The company anticipates a steady-state operation with an annual production capacity of 2.7 million tons. Over a 12-year mine life, this would amount to a total of 3.6 million tons of spodumene concentrate.

Impressive Financial Analysis

Projected life of mine revenues are estimated to reach $6.6 billion, with a post-tax net present value of $1.3 billion and free cash flow totaling $2.1 billion. Development costs are expected to amount to $185 million, which will be financed by Piedmont Lithium and Minerals Income Investment Fund, Ghana’s sovereign wealth fund. Additionally, Atlantic Lithium is actively seeking partners to secure funding for a portion of the remaining feedstock.

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