About Prospect Resources

 

Prospect Resources Limited (ASX: PSC) is an African focused mining company listed in Australia. We identify, prove, develop and operate in Africa. Prospect’s flagship project is the 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

 

 

 

 

Project Highlights

 

Arcadia Lithium Project

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.

 

Project highlights

  • Robust project economics
  • Low operating cost
  • Rapid paybacks of <2.5 years
  • Diversified product offering
  • Current offtake Partner
  • Strategic location
  • Demonstrated government support

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On 19th November 2018, Prospect completed its Definitive Feasibility Study (DFS) for the 2.4Mtpa base case development of the 87% owned Arcadia Lithium Project. Followed by the plant optimisation with High Pressure Grinding Roll (HPGR) completed on 5th March, current key project economics outcomes are:

  • Pre-tax NPV (10% discount rate) of USD533 million with strong margins, delivering a rapid payback for the project of less than 2.5 years from first production and an exceptionally strong IRR of 45% (updated on 5th March)

  • Forecast life-of-mine project revenue of USD2.93 billion excluding tantalum credits and project average annual EBITDA of USD109 million over an estimated 12-year mine life (updated on 5th March)

  • Average annual concentrate production of approximately 212 kt of 6% spodumene, 216 kt of 4% petalite, and 188 klb of tantalum

  • Competitive cash operating costs of USD278 per tonne of concentrate and C1 cost of US$230 per tonne, demonstrating Arcadia’s resource size, plant scale, strategic location to key infrastructure and grade (updated on 5th March)

  • Capital cost estimate of USD163 million, including carried costs to positive cash flow (updated on 5th March)

  • Conventional open pit mining with a strip ratio of 3.0:1

  • LOM lithia recoveries of 68% using conventional DMS, spirals and flotation

  • Project expected to be in production 18 months from securing finance