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In short

Net Present Value:

$0.48 B

Accreditable to Bacanora (50%), $12000/t LCE pricing. After-tax, 8% Discount rate

Resource Estimate

2.6 Mt

Accreditable to Bacanora (50%), Measured & Indicated

Stage:

DFS

Completed

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Lithium project:

Sonora

Sonora, Mexico

Project Summary

Net Present Value

$0.48 B

Accreditable to Bacanora (50%), $12000/t LCE pricing. After-tax, 8% Discount rate

Resource Estimate

2.6 Mt

Accreditable to Bacanora (50%), Measured & Indicated

Completed Stage:

DFS

Location: Sonora, Mexico
Completed Stage: DFS
Next Stage: Construction

Website: bacanoralithium.com

Company description

Bacanora Lithium is an AIM listed company focused on building, in collaboration with its major shareholder and offtake partner, Ganfeng Lithium (the world’s largest lithium metals producer), a 35,000 tonne per annum open pit battery grade lithium operation at its flagship asset, the Sonora Lithium Project in Mexico. To capitalise on the fast-growing lithium market, our main focus is to monetise the resources and reserves held in the Sonora Project, which benefits from a large, scalable and high-grade lithium resource with a Measured and Indicated Resource of over 5 million tonnes Lithium Carbonate Equivalent (LCE).

Key takeaways:

1. Partnered up with lithium major Ganfeng Lithium

Bacanora entered into a Joint Venture agreement with Ganfeng Lithium on their Sonora Project. Ganfeng increased their stake in the project to 50% in the fall 2020. Ganfeng also has a stake in Bacanora at a corporate level. 

2. Battery grade pilot plant has run for years

Bacanora has for more than 4 years been running their pilot plant to produce battery grade quality lithium hydroxide. 

3. Signed offtake-agreements

Bacanora holds a 10 year off-take agreement with Hanwa, one of Japans biggest trading houses. Also, the company’s partner Ganfeng has signed off-take agreements of up to 50 % of the total production in stage 1 and 75 % of the production volume in stage 2.

 

Resources & Reserves

Resources

Reserves

Project Economics

Initial capital costs

$420M

After-tax IRR

18.5%

$12000/t LCE pricing, 8% Discount rate

Operating Cost

$3910/t

LCE, before by-products credit

Ownership

50%

Of the Sonora project

Sensitivity Analysis - Forecasted Pricing

Forecasted LCE pricingAfter-tax NPV(8%) After-tax IRR
$11000/t$ 0.39 B21.0%
$12000/t$ 0.4823.5%
$12200/t$1.01 B24%

Bacanora Lithium $BCN Current valuation

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Company financials

Debt

$27.9 M

30 June, 2020

Cash & Cash eq

$48.5 M

30 June, 2020
Incl. assets held for sale

 

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