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Lithium Americas' definitive study for Cauchari-Olaroz outlines US$1.33B value

Lithium Americas Corp. said Sept. 30 that a definitive feasibility study for the Cauchari-Olaroz project in Argentina outlined an posttax net present value, discounted at 10%, of US$1.33 billion for a 40,000 tonne-per-annum operation over 40 years.

The Cauchari-Olaroz project is a 50/50 joint venture between Lithium Americas and Ganfeng Lithium Co. Ltd.

Capital expenditure for the operation, including contingency, is projected at US$565 million, including over US$200 million in capex already committed.

The project is fully funded to production, as Lithium Americas has US$221 million available under its credit and loan facilities, and the net proceeds from a US$160 million investment by Ganfeng, according to the release.

Operating cost is estimated at US$3,576 per tonne of battery-quality lithium carbonate.

Based on a lithium carbonate price of US$12,000 per tonne, average EBITDA during the operation's life is anticipated at US$307 million.

The study took into account proven and probable reserves, without processing efficiency assumptions, of 3.64 million tonnes of lithium carbonate equivalent based on an average grade of 607 milligrams of lithium per liter.

First production is targeted for early 2021, as ongoing construction is due for completion by the end of 2020. Cauchari-Olaroz is scheduled to ramp up to full capacity in 2022.