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Altura: DFS pegs A$411M pretax NPV, 58.1% IRR for Pilgangoora lithium project

A definitive feasibility study on Altura Mining Ltd.'s Pilgangoora lithium project in Western Australia indicated a pretax net present value, using a 10% discount rate, of A$411 million and an internal rate of return of 58.1%, according to a Sept. 26 statement.

Altura intends to develop and produce from Pilgangoora — which is planned to consist of a single open-pit mine, an on-site processing plant and site facilities — in 2017.

CapEx, including sustaining capital and pre-development capital, is at A$139.7 million. Payback is in 1.8 years.

Average annual production is estimated at of 219,000 tonnes per annum of spodumene concentrate at 6% lithium oxide over an initial 13.2-year mine life. Cash cost per tonne is A$315.90.

Total revenue is A$2.07 billion, while EBITDA stands at A$1.06 billion.

The numbers are based on the current ore reserve estimate of 20.3 million tonnes.

Significant potential exists to increase both the current resource of 39.4 million tonnes and the ore reserve estimate upon completion of the current resource extension drilling program, the company said. Results are expected in the fourth quarter.