Leading Africa in the Battery Minerals Revolution
Prospect Resources Limited (ASX: PSC, FRA:5E8) is a battery minerals company with a focus on lithium in and around Zimbabwe, with the flagship project being the 87% owned Arcadia Lithium project, located on the outskirts of Harare in Zimbabwe.
Prospect has a strong, agile team split between Africa and Perth who have the optimal experience to build Prospect as Africa's leading mineral business.
Australian Team – financing, investor relations, corporate governance, offtake and marketing
- Small and focused head office team
- Deep financial market and transaction experience
African Team - development and exploration
- Strong and experienced local team with a track record of discovering, proving, building and operating mining projects in Africa
- Significant majority of the Prospect team is based on the ground in the region
Arcadia Lithium Project represents a globally significant hard rock lithium resource. The project is being rapidly developed by Prospect’s experienced team, with the focus on near term production of petalite and spodumene concentrates.
- 7th largest global hard rock lithium asset
- Fully permitted to commence production
- Strong project economics to drive returns for shareholders
- Diversified markets across Europe, North America and North Asia
- Close proximity to a skilled labour force and established infrastructure
- Operating in an established mining jurisdiction, with over 100 years of mining history
- Offtake agreement and equity investment from Shenzhen Stock Exchange listed lithium chemical converter Sinomine Resources Group
On 12th Dec 2019, Prospect released an updated Definitive Feasibility Study (DFS) with the following key project outcomes:
- US$710M pre-tax NPV10 Up 39%, confirming the value of the project and the opportunity for Prospect Resources
- Exceptional profitability and healthy operating margins with US$168M average annual EBITDA for the first 5 years of operation
- US$162M capital expenditure estimate Including EPCM contract cost provision, and 14% contingency (including EAA*)
- US$3.42B LOM revenue excluding tantalum credits, up 17%. Demonstrating the value to shareholders
- 15.5 year mine life,further increasing Arcadia's exposure to long term EV demand
- Substantially improving project returns with an internal rate of return (IRR) of 71% (pre-tax), up from IRR 44%