Annual Report to shareholders
The Company has four distinct project regions, two in South America's lithium brine region and two in Western Australia's spodumene hard rock. This is consistent with our stated strategy of being a diversified lithium developer in both geography and geology.
FINANCIAL OVERVIEW - DEFINITIVE FEASIBILITY STUDY
The Company released its Definitive Feasibility Study (DFS) in January 2019. It was prepared on the Mining Reserve estimate of 742,000 tonnes of LCE (203,000 Proved and 539,000 Probable), supporting the 20,000 tonnes per annum (t/a) projected for Maricunga throughout its 20-year mine life (Table 4 above). Resources have been updated to a total of 2,070,000 tonnes of LCE, and all are classified as Measured or Indicated (Table 1 above). Both the Reserve and Resource estimates are prepared in accordance with JORC and NI 43-101 international reporting standards.
The strong economics of the project confirms its attractiveness, with a leveraged NPV on a pre-tax basis (8% discount) of US$1.302 billion, providing an IRR of 29.8 per cent and a payback of 3.5 years. On a pure equity basis, the NPV is US$1.286 billion with an IRR of 23.8 per cent.
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About Lithium Power International Ltd
Lithium Power International Limited (ASX:LPI) is a pure-play lithium explorer and developer, focusing on developing and fast-tracking to production the high-grade Maricunga lithium brine project in Chile.
LPI has a well-known performing technical team with the experience to take the Maricunga project all the way through the development stages to production.
The regions that LPI is currently focused on are:
1. Maricunga JV (Chile) – Located within the "Lithium Triangle", Maricunga is Chile's highest grade and most advanced lithium project outside the Salar de Atacama. The project lies 170 km northeast of Copiapo and 250 km from the port of Caldera.
2. Pilbara (Western Australia) – LPI has three granted exploration tenements covering 203 km2 in the Pilbara region of northern Western Australia. The largest granted exploration tenement is the Pilgangoora tenement which is 2-3 km west of the Pilbara Minerals (ASX:PLS) and Altura Mining (ASX:AJM) lithium deposits.
3. Greenbushes (Western Australia) – LPI has two granted exploration tenements covering 400 km2 in the Greenbushes area of southern Western Australia. The tenements are adjacent to the world's largest hard rock lithium mine owned and operated by Tianqi/Talison.
4. Centenario (Argentina) – Through its Argentinian subsidiary, Lithium Power holds a total of seven granted tenements in the Centenario lithium brine salar within the Salta province of the Puna Plateau. In total, the seven granted tenements cover an area of 68.46 km2.
With the exception of the Maricunga JV, all tenements are 100% owned by LPI or LPSA (including rights to the Centenario tenements).
Lithium Power International Ltd