Earlier this month, Century Lithium (LCE.V) announced it has submitted the mine plan of operations and the Nevada Reclamation permit application for its fully owned Angel Island lithium project. This is a milestone for the company as it defines the project the Bureau of Land Management will analyze, while it also starts the clock on the environmental review period. As the project is part of the FAST-41 program, the permitting dashboard for federal infrastructure projects provides greater transparency throughout the permitting process. This results in an anticipated completion date of February 4, 2028.
The company has also announced it is continuing with its plans to build a chlor-alkali plant which would not only supply the Angel Island project, but could also provide third parties with chlorine, hydrochloric acid and sodium hydroxide. The company ahs signed eight MOUs (non-binding) with third parties that are interested in purchasing product from the potential new plant. Given the strong interest from third parties, Century Lithium will likely pursue a different funding route for the plant, with plant-level funding as it is the preference to potentially develop this chlor-alkali plant as a standalone industrial asset rather than considering it to be part of the Angel Island capex.
While Century Lithium’s share price certainly has been disappointing, the lithium price remains strong. With a current spot price of $21,500/t, the lithium carbonate price is trading at a 10% discount versus the lithium price used in the base case scenario of the feasibility study on the project. As a reminder, the NPV8% came in at US$4B while at the current spot price, the NPV should remain above US$3B, with an IRR of around 25%.
Disclosure: The author has a long position in Century Lithium. Century Lithium is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
