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In short

Accumulative
Net Present Value

$4.36B

$20,000/t LCE pricing. After-tax, 8% Discount rate
& 49% of Cauchari-Olaroz
100% of Millennial Lithium

Resource Estimate

13.8 Mt

LCE, Measured & Indicated

Project Stage

DFS

Completed

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Lithium project #2:

Cauchari-Olaroz

Argentina

Project Summary

Net Present Value

$1.9B*

~$4B**

*Attributable to LAC 49%, $20,000/t LCE pricing. after-tax, 8% Discount rate
**Total project NPV

Resource Estimate

9.7 Mt*

19.9**

*Attributable to LAC 49%, Measured & Indicated.
**Total project M&I

Completed Stage

DFS

Location: Argentina
Completed Stage: DFS
Next Stage: Construction

Website: www.lithiumamericas.com

Company description

Cauchari-Olaroz is located in Jujuy Province in north-west Argentina. The Project is situated in the Salar de Olaroz and Salar de Cauchari, adjacent to Orocobre Ltd.’s Olaroz facility, which has been in production since 2015. Cauchari-Olaroz is well serviced by nearby infrastructure including major paved highways, a national and international rail link which connects to the port of Antofagasta in Chile, a high-voltage power grid, and a gas pipeline.

Key takeaways:

1. Estimated production in 2021

Cauchari-Olaroz is planned to go into production in 2021 to to become the next-low cost brine project in Argentina

2. 60% spent or committed

Of the estimated capital costs of $565M, over 60% is already spent or commited. 

Resources & Reserves
Attributable to Lithium Americas (49%)

Resources

Reserves

Project Economics

Initial capital costs

$565M

After-tax IRR

68.7%

*$20,000/t LCE pricing
**8% Discount rate

Operation Cost

$3579/t

LCE

Ownership

49%

Of the Cauchari-Olaroz project

Project: Pastos Grandes Summary

Net Present Value

$2.46 B

$20,000/t LCE pricing. After-tax, 8% Discount rate

Resource Estimate

4.1 Mt

Measured & Indicated

Stage

FS

Last released technical report

Brine profile

Impurity level: Mg/Li
6.2
Impurity level: Sulphate/Li
19.3

Grade Lithium

~420 mg/l

Location: Salta Province, Argentina
Completed Stage: FS

Website: millenniallithium.com

Company Description

“Millennial has recently completed a Feasibility Study (FS) on its Pastos Grandes Project which yielded Proven Reserves of 179,000 tonnes of Lithium Carbonate Equivalent (LCE) and Probable Reserves of 764,000 tonnes of LCE. The economic analysis from the FS yielded robust economics for a 24,000 tonne/year battery grade LCE operation with a CAPEX of $442M, OPEX of $3,388/t LCE, NPV(8) of $1,030M and IRR of 24.2%. Pilot plant and pilot pond trials are ongoing at the project..”

Key takeaways:

1. Conventional Brine

The Pastos Grandes utilizes proven technology in their conventional brine operation.

2. Strategic Partnership with GCL

Has a strategic partnership with the Chinese solar giant GCL, that invested $30 million in Millennial lithium on a company level. 

3. Experienced Management

The company has a management with experience in large development projects and in the Lithium sector.

Project: Pastos Grandes Resources & Reserves

Resources

Reserves

Project: Pastos Grandes Key Figures

Initial capital costs

$410M

After-tax IRR

42.7%

$20,000/t LCE pricing, 8% Discount rate

Operating Cost

$3388/t

LCE

Ownership

100%

Of the Pastos Grandes project

Pastos Grandes Sensitivity Analysis : Forecasted pricing

Pricing forecast NPV 8% (After-tax) US$ IRR
$12000/t LCE*
$0.813* B
21.4%*
$12150/t LCE
$0.844 B
21.8%
$13050/t LCE
$1.03 B
24.2%

*Interpolated value

 

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