REG - Atlantic Lithium Ltd - Quarterly Activities and Cash Flow Report
Wed 07:00
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RNS Number : 7916G Atlantic Lithium Limited 30 April 2025
30 April 2025
Quarterly Activities and Cash Flow Report
for the quarter ended 31 March 2025
Atlantic Lithium awaits parliamentary ratification of the Ewoyaa Mining Lease,
having secured all of the
approvals required for the construction of the Project
Atlantic Lithium Limited (AIM: ALL, ASX: A11, GSE: ALLGH, OTCQX: ALLIF,
"Atlantic Lithium" or the "Company"), the Africa-focused lithium exploration
and development company targeting the delivery of Ghana's first lithium mine,
is pleased to release its Quarterly Activities and Cash Flow Report for the
period ended 31 March 2025.
Highlights
Project Development:
- Water Use Permit granted by the Water Resources Commission in
respect of the Company's flagship Ewoyaa Lithium Project ("Ewoyaa" or "the
Project") in Ghana, enabling water extraction for use at the Project.
- Further progress made towards critical activities, as defined by
the Environmental Protection Authority ("EPA") permit schedule for the
Project, to ensure that all permitting and operating requirements are met
prior to breaking ground at Ewoyaa.
Exploration:
- Updated JORC (2012) compliant Mineral Resource Estimate of 36.8Mt
at 41.9% feldspar(1) ("Feldspar MRE") reported for the Project, demonstrating
Ewoyaa's potential to become a major producer of feldspar, which will be
produced as a by-product of spodumene concentrate production.
- Analysis underway of the 1,594 Phase 2 soil geochemical samples
collected from the sampling programme conducted over a portion of the 396.89
km(2) Agboville exploration licence in Côte d'Ivoire.
- Completion of a Phase 2 soil geochemical survey over a portion of
the 374.18 km(2) Rubino licence in Côte d'Ivoire, with all of the planned
1,641 sample sites collected.
- Additional Phase 3 soil sampling programme completed over a
portion of the Rubino licence, with 1,018 samples collected from the 1,088
planned sampling sites.
Corporate:
- Strategic initiatives implemented through FY2025 to conserve the
Company's cash balance and to enable the Company to continue the advancement
of the Project towards Project Final Investment Decision ("Project FID").
- Cash on hand at end of quarter was A$8.1m.
Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
"With all of the approvals required for the construction of the Ewoyaa Lithium
Project now secured, Atlantic Lithium is particularly well situated for a
lithium price recovery. Pricing is currently subdued and to further improve
our prospects, we have proactively engaged the government in Ghana to seek
additional fiscal assistance to ensure the Project can be advanced to mining
on a timely basis. Through these discussions, the Company hopes to support
Ghana's efforts to deliver the long-term benefits that the Project promises,
most notably for the residents of the Project's affected communities in the
Central Region.
"While weathering the challenges of the lithium market and the delays to the
Project's development, we have implemented strategic initiatives to conserve
cash. These initiatives have enabled the Company to continue the advancement
of the Project towards Project FID.
"We look forward to securing ratification in line with due parliamentary
process, together with additional fiscal assistance from the government, which
represents a key milestone on the Company's path to achieving first production
of lithium in Ghana."
Figures and Tables referred to in this release can be viewed in the PDF
version available via this link:
http://www.rns-pdf.londonstockexchange.com/rns/7916G_1-2025-4-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7916G_1-2025-4-30.pdf)
Authorised for release by Amanda Harsas, Finance Director and Company
Secretary, Atlantic Lithium Limited.
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
Ewoyaa Lithium Project, Ghana, West Africa
During the period, the Company continued to advance its flagship project, the
Ewoyaa Lithium Project, through the permitting phase towards production. The
Project is on track to become Ghana's first operating lithium mine and one of
the largest hard rock spodumene concentrate mines globally.(2) The Definitive
Feasibility Study for Ewoyaa outlines a low capital and operating cost
profile, with globally significant, near-term production potential.(1)
Ewoyaa, located in the pro-mining jurisdiction of Ghana, West Africa,
approximately 100km southwest of the capital of Accra, comprises eight main
deposits, including Ewoyaa, Okwesikrom, Anokyi, Grasscutter, Abonko,
Kaampakrom, Sill and Bypass. The Project is well located to operational
infrastructure, including being within 1km of the Takoradi - Accra N1 highway,
110km from the Takoradi deep-sea port and adjacent to grid power (refer Figure
1).
Figure 1: Location of the Ewoyaa Lithium Project, Ghana
Interest in Tenements
At the end of the quarter ending 31 March 2025, the Company had an interest in
the following tenements:
Tenement Number Tenement Principal Grant Date/ Expiry Date Term Change during Quarter
Name
Holder
Application Date
Ghana
PL3/67 Apam East Obotan Minerals Company Limited 06.11.23 05.11.26 3 years None
(JV MODA Minerals Limited)
PL3/92 Apam West Obotan Minerals Company Limited 06.11.23 05.11.26 3 years None
(JV MODA Minerals Limited)
RL 3/55 Mankessim Barari DV Ghana Limited 27.07.21 26.07.24* 3 years Renewal submitted
(90% Atlantic)
PL3/102 Saltpond Joy Transporters Limited 06.11.23 05.11.26 3 years None
(100% Atlantic)
PL3/109 Mankessim South Green Metals Resources Limited 06.11.23 05.11.26 3 years None
(100% Atlantic)
PL3/106 Cape Coast Joy Transporters Limited 15.11.21 14.11.24* 3 years Renewal submitted
(100% Atlantic)
RML-N-3/181 Senya Beraku Green Metals Resources Limited (100% Atlantic) 09.11.23 08.11.26 3 years None
PL-I-3/15 Bewadze Green Metals Resources Limited 09.11.23 08.11.26 3 years None
(100% Atlantic)
ML-3/239 Mankessim Mining Lease Barari DV Ghana Limited (90% Atlantic) 20.10.23 19.10.38 15 years None
Ekrubaadze PL Green Metals Resources Limited 03.10.23 Application None
(100% Atlantic)
Asebu (Winneba North) Green Metals Resources Limited (100% Atlantic) 28.06.21 Application None
Mankwadze (Winneba South) Green Metals Resources Limited (100% Atlantic) 28.06.21 Application None
Mankwadzi Obotan Minerals Company Limited 15.03.18 Application None
(JV MODA Minerals Limited)
Onyadze Green Metals Resources Limited 23.08.21 Application None
(100% Atlantic)
Ivory Coast
PR695 Rubino Khaleesi Resources SARL 22.05.24 21.05.28 4 years None
(100% Atlantic)
PR694 Agboville Khaleesi Resources SARL 08.05.24 07.05.28 4 years None
(100% Atlantic)
* A renewal application has been submitted to the relevant Government mining
department and the Group has no reason to believe the renewal will not be
granted.
March Quarter Activities
Project Development
Permitting
During the period, the Project was granted a Water Use Permit by the Water
Resources Commission. The permit, which enables the extraction of water from
the Ochi-Amissah River for use at the Project for the purposes detailed in the
Definitive Feasibility Study ("DFS"; refer announcement of 29 June 2023),
serves as a key approval for the successful operation of the Project and an
important de-risking milestone for the Company.
The award of the Water Use Permit follows the grant of the Mine Operating
Permit, the Land Use Certificate and the EPA Permit, respectively, which each
represent critical approvals for the advancement of the Project.
Having secured all of the permits required to begin construction, the Company
currently awaits parliamentary ratification of the Ewoyaa Mining Lease, which
was issued by the Ministry of Lands and Natural Resources in October 2023.
In line with the permit schedule defined for the Project by Ghana's
Environmental Protection Authority ("EPA"), the Company continues to complete
critical activities to ensure that all permitting and operating requirements
are met prior to breaking ground at Ewoyaa. Work that has been completed to
date includes a report on permit awareness among local community members, a
report on the selection of environmental monitoring points, a Project
Emergency Preparedness and Response Plan, a Socio-economic and Livelihood
Impact Assessment Report and a report on strategies for skills training among
community members.
Ewoyaa Mining Lease
The Company continues to await the ratification of the Ewoyaa Mining Lease by
Ghana's parliament, which serves as the final phase of the permitting process
for the Project. The Mining Lease was granted in October 2023 during a period
of elevated lithium prices. Since then, lithium prices have fallen
significantly. Accordingly, the Company has engaged key stakeholders,
including government representatives, in constructive discussions to consider
fiscal terms that reflect the current lithium price environment and that
ensure that the Project delivers long-term benefits for Ghana and Ghanaians.
Discussions remain ongoing. The Company remains confident that ratification of
the Mining Lease will be forthcoming in accordance with due parliamentary
process, however, shareholders should note that there can be no certainty that
the Company will be able to secure more favourable terms or that Ghana's
parliament will indeed ratify the Mining Lease.
Project FID
Following the completion of the engineering and design of the Project, the
Company continues to progress the preparation of documentation required to
support the Board in making its Project FID. Project FID is subject to the
completion of the permitting phases, including parliamentary ratification of
the Ewoyaa Mining Lease, and the finalisation of financing and offtake
arrangements.
Exploration
Feldspar MRE
During the period, the Company reported an updated JORC (2012) compliant
Mineral Resource Estimate of 36.8Mt at 41.9% feldspar(1) ("Feldspar MRE") in
respect of the Project (refer announcement of 30 January 2025).
The Feldspar MRE(1) is based on the same geological model that resulted in the
36.8Mt at 1.24% Li(2)O Mineral Resource Estimate(1) for the Project ("Lithium
MRE", refer announcement of 30 July 2024).
The Company previously reported a Maiden Feldspar MRE for the Project (refer
announcement of 12 December 2023), which was confined to approximately the
first five years of spodumene production. The upgraded Feldspar MRE(1) now
considers the mine plan in respect of the Project's Life of Mine spodumene
concentrate production, as detailed in the Ewoyaa DFS(1).
The Feldspar MRE(1) includes 29.8Mt (81%) in the Measured and Indicated
categories, comprising a total of 3.7Mt at 40.2% feldspar in the Measured
category, 26.1Mt at 42.1% feldspar in the Indicated category and 7.0Mt at
42.4% feldspar in the Inferred category. In addition to the feldspar, quartz
and muscovite were also estimated and included as potential by-products of
spodumene concentrate production at Ewoyaa (refer Table 1).
The Feldspar MRE(1) enables the Company to include the Life of Mine production
of feldspar in future revisions of the Ewoyaa feasibility studies, which is
expected to drive down operating costs for the Project.
The Company also intends to supply the feldspar produced at Ewoyaa to the
local Ghanaian ceramics market, which is expected to support the Company's
social licence to operate.
Metallurgical test work and ceramic application trials undertaken using
feldspar samples from Ewoyaa for vitreous hotelware, high-end earthenware and
floor tiles produced acceptable ware, comparable to industry standards in all
aspects, including contraction, water absorption, density, porosity, shape,
colour and appearance (refer announcement of 12 December 2023).
Table 1: Ewoyaa Feldspar MRE(1) (0.5% Li(2)O Cut-off)
Measured Mineral Resource
Type Tonnage Quartz Quartz Feldspar Feldspar Musc. Musc.
Mt % Mt % Mt % Mt
Primary 3.7 32.6 1.20 40.2 1.48 7.2 0.27
Total 3.7 32.6 1.20 40.2 1.48 7.2 0.27
Indicated Mineral Resource
Type Tonnage Quartz Quartz Feldspar Feldspar Musc. Musc.
Mt % Mt % Mt % Mt
Weathered 0.5 34.5 0.16 37.6 0.17 8.4 0.04
Primary 25.6 31.8 8.14 42.1 10.80 6.3 1.61
Total 26.1 31.8 8.30 42.1 10.98 6.3 1.65
Inferred Mineral Resource
Type Tonnage Quartz Quartz Feldspar Feldspar Musc. Musc.
Mt % Mt % Mt % Mt
Weathered 1.8 36.0 0.65 41.3 0.75 6.3 0.11
Primary 5.2 32.2 1.67 42.8 2.22 6.1 0.32
Total 7.0 33.2 2.32 42.4 2.97 6.2 0.43
Total Mineral Resource
Type Tonnage Quartz Quartz Feldspar Feldspar Musc. Musc.
Mt % Mt % Mt % Mt
Weathered 2.3 35.7 0.81 40.6 0.92 6.7 0.15
Primary 34.5 31.9 11.02 42.0 14.51 6.4 2.20
Total 36.8 32.2 11.83 41.9 15.43 6.4 2.35
Note: The Mineral Resource has been compiled under the supervision of Mr.
Shaun Searle who is a director of Ashmore Advisory Pty Ltd and a Registered
Member of the Australian Institute of Geoscientists. Mr. Searle has sufficient
experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity that he has undertaken to qualify as a
Competent Person as defined in the JORC Code and a Qualified Person under the
AIM Rules for Companies.
All Mineral Resources figures reported in the table above represent estimates
at January 2025. Mineral Resource estimates are not precise calculations,
being dependent on the interpretation of limited information on the location,
shape and continuity of the occurrence and on the available sampling results.
The totals contained in the above table have been rounded to reflect the
relative uncertainty of the estimate. Rounding may cause some computational
discrepancies.
Mineral Resources are reported in accordance with the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (The
Joint Ore Reserves Committee Code - JORC 2012 Edition).
The Feldspar MRE is based on the Lithium MRE reported by the Company in July
2024.
Côte d'Ivoire
Through its subsidiary Khaleesi Resources SARL ("Khaleesi"), the Company
wholly owns the contiguous Agboville and Rubino exploration licences in the
mining-friendly jurisdiction of Côte d'Ivoire in West Africa. The two
licences offer the Company with exclusive rights to apply its proven lithium
exploration expertise over new, untested and highly prospective tenure, where
the Company considers there to be significant lithium discovery potential.
Agboville
Analysis of the 1,594 Phase 2 soil geochemical samples completed over a
portion of the 396.89 km(2) Agboville licence is underway at the Company's
Mankessim site in Ghana. The analysis aims to identify anomalies for follow-up
ground evaluation and possible drilling.
The Company also commenced a Phase 3 soil sampling programme within the
licence during the reporting period, with 901 sample sites planned for
completion, with sampling ongoing as at the date of this report.
Rubino
During the period, the Company's geologists and geological contractor (SEMS)
completed the Phase 2 soil geochemical survey over a portion of the 374.18
km(2) Rubino licence, with all of the planned 1,641 sample sites collected.
The samples were dried and sieved at the Company's Agboville base and
dispatched for analysis at the Company's Mankessim facility.
An additional Phase 3 soil sampling programme within the Rubino licence was
completed during the period, with 1,018 samples collected from the 1,088
planned sites. Samples are currently being processed at the Company's
Agboville site.
All soil sampling at the Agboville and Rubino licences were sampled using 100m
x 100m spaced sampling grids, a sample density that has proved successful for
the Company's soil geochemical surveys completed in Ghana, where lithologies
and tropical weathering conditions are believed to be similar.
Traverse mapping continues across both the Agboville and Rubino licences
separately and in conjunction with grid soil sampling.
Corporate
Board Change
During the period, Edward Nana Yaw Koranteng resigned from his position as
Non-Executive Director and Chairman of the Remuneration and Nomination
Committee of the Board. His resignation follows his departure from the
Minerals Income Investment Fund ("MIIF"), where he held the position of
Non-Executive Director per MIIF's entitlement to appoint a nominee director to
the Company's Board, as agreed under the terms of MIIF's US$5m subscription in
the Company (refer announcement of 24 January 2024).
Concentrate Offtake
The Company continues to engage directly with parties across the battery
metals supply chain who express inbound interest in lithium products from
Ewoyaa. Noting that Ewoyaa is one of the most advanced undeveloped hard rock
lithium projects globally, the Company remains confident that it will secure
favourable offtake terms that ensure maximum value for the
Company's shareholders.
Project Funding
Under the Project's current funding and joint venture arrangements, Piedmont
Lithium ("Piedmont") is required to contribute the first US$70m of Development
Costs as defined in the Project Agreement as sole funding to complete its
earn-in to 50% of the Company's Project ownership, with all Development Costs
and other Project expenditure equally shared by both the Company and Piedmont
thereafter.
Activities to secure funding to meet the Company's Project development
obligations are underway. This is a critical component to the Board making its
Project FID. The Company continues to receive considerable interest and is
exploring a range of funding providers and funding options.
Current expenditure relating to the Project is being jointly funded by the
Company and Piedmont. At the time of this report, the Company has made claims
for Development Costs as defined under the Project Agreement with Piedmont.
Atlantic Lithium claims that Piedmont is liable to sole fund Development Costs
under the Project Agreement. Piedmont denies that it is liable to sole fund
Development Costs at this time as the contractual preconditions in the Project
Agreement for their sole funding obligation have, in their view, not been met.
On that basis, Piedmont has instead contributed 50% of those Development Costs
claimed by the Company. The balance of the Development Costs the Company has
claimed from Piedmont (US$6.5m for the period from October 2023 to March 2025)
is in dispute and remains outstanding. The Company remains engaged in
discussions with Piedmont concerning these amounts and an established process
exists within the Project Agreement for resolution including good faith
negotiations and referral to arbitration.
Exploration and studies activities in Ghana are currently jointly funded by
the Company and Piedmont, with neither party having any outstanding
expenditure obligations.
During the period of January 2025 to March 2025, Piedmont contributed a total
of US$0.95m (A$1.51m) towards the funding of the Project and the Company's
Ghana portfolio.
Cash Flow
Figure 2: Net cash flows for March 2025 quarter (AUD)
Cash Conservation
Through FY2025, the Company has implemented strategic initiatives to manage
the Company's cash balance, considering the current lithium market environment
and the ongoing delay to the ratification of the Ewoyaa Mining Lease. These
include significantly cutting marketing expenditure and associated travel,
administration costs, exploration (excluding in Côte d'Ivoire, where the
Company has obligations under the terms of the grant of its Agboville and
Rubino licences) and reducing headcount (including cutting Australia-based
staff by c. 60% in December 2024). These initiatives have enabled the Company
to focus capital on Project-critical activities that ensure the continued
advancement of Ewoyaa towards Project FID.
Figure 3: Total cash outflows per quarter for FY2025 (AUD)
Note: Exploration & Evaluation refers to activities in both Ghana and
Côte d'Ivoire. Refer to item 2.5 in Appendix 5B for information on Piedmont's
reimbursements for funding of the Project and the Company's Ghana portfolio.
MIIF Project-level Investment
The Company continues to engage with MIIF representatives, noting the changes
to its leadership team and Board following the December 2024 elections, to
finalise MIIF's US$27.9m investment in the Company's Ghanaian subsidiaries to
acquire a 6% contributing interest in the Ghana Portfolio, which constitutes
Stage 2 of its Strategic Investment in the Company.
This follows the completion of Stage 1, comprising MIIF's subscription for
19,245,574 Atlantic Lithium shares for a value of US$5m, in January 2024.
Stakeholder Engagement
The Company attended the following conferences and industry events during the
period:
- Future Minerals Forum, Saudi Arabia (14-16 January)
- Mining Indaba, Cape Town (3-6 February)
- PDAC, Toronto (2-5 March)
Sustainability
AKOBEN Rating Programme
The Company has been invited by Ghana's EPA to participate in its AKOBEN
rating programme. AKOBEN is a national rating and public disclosure programme
which evaluates companies' environmental and social performance against
activities detailed in approved project Environmental and Social Impact
Assessment (ESIA) and permit schedules.
The Company is committed to upholding the highest standards of environmental
and social stewardship and welcomes the opportunity to participate in this
rating system.
Donations to Local Muslim Communities
Ahead of the Islamic occasion of Eid-ul-Fitr, Atlantic Lithium was proud to
donate food and an assortment of essential items to several Muslim communities
within the Ewoyaa catchment area. Among the items donated were bags of rice,
boxes of spaghetti, bottles of cooking oil, packets of soft drinks, boxes of
mackerel and cans of tomatoes, providing those fasting with access to food and
other necessities to mark the end of Ramadan.
The Atlantic Lithium team received a warm welcome from the various
communities, with the Imams and community leaders of all the mosques visited
attesting to the Company's positive social impact within the Mfantseman
Municipality.
International Women's Day
Marking International Women's Day, Atlantic Lithium held an engagement for
over 470 second and third-year female students of Methodist Senior High School
in Saltpond in Ghana's Central Region. Under the theme of 'Mentorship and
Networking: Supporting the Next Generation of Women in Mining', the event
allowed the students to hear from several female members of the Company's
staff and Ghana's first female geologist, Mrs. Alexandra Amoako-Mensah, on
their experiences within the mining sector and the opportunities that working
in the industry can provide young women.
Share Capital Changes - Ordinary Shares, Options and Performance Rights
Between 1 January 2025 and the date of this report, a total of 4,300,000
options, that had been granted under the Company's Employee Share Option Plan,
lapsed unexercised or were forfeited.
A summary of movement and balances of equity securities between 1 January 2025
and the date of this report is as follows:
Ordinary Shares Unquoted Options Unquoted performance rights
On issue at start of Quarter 693,147,313 18,722,787 15,558,614
Employee Share Options forfeited (10 March 2025) (300,000)
Employee Share Options lapsed (31 March 2025) (4,000,000)
Total Securities on issue at date of this report 693,147,313 14,422,787 15,558,614
Compliance
During the quarter, the Company spent A$3.6m on its exploration, feasibility,
and development activities in Ghana. In accordance with the agreement
announced on 1 July 2021, exploration and feasibility activities in Ghana are
50% funded by Piedmont, with Piedmont sole funding the first US$70m of Project
development expenditure. Funding is shared equally thereafter. The Company
spent A$0.4m on exploration in Côte d'Ivoire.
Payments to Related Parties of the Entity and their Associates
Appendix 5B includes amounts in items 6.1 and 6.2. The amounts represent
salaries and bonuses (including superannuation) and fees paid to directors.
Appendix 5B expenditure disclosure
As at 31 March 2025, the Company had cash resources of A$8.1m and no debt.
Exploration, feasibility, and development activities cash expenditure during
the quarter was A$4.0m. Piedmont Lithium Inc. funded A$1.5m in the quarter.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity: ATLANTIC LITHIUM LIMITED
ABN: 17 127 215 132 Quarter ended ("current quarter"): 31 March 2025
Consolidated statement of cash flows Current quarter Year to date (9 months)
$A'000
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for - -
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (225) (863)
(e) administration and corporate costs (866) (3,102)
1.3 Dividends received (see note 3) - -
1.4 Interest received - 8
1.5 Interest and other costs of finance paid (6) (14)
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other Income - -
1.9 Net cash from / (used in) operating activities (1,097) (3,971)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment - (99)
(d) exploration, feasibility, and development (3,980) (16,576)
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - 1
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) -
2.5 Other - Piedmont Contributions from farm-in arrangement 1,505 5,348
2.6 Other - Contribution from lessor for Lease Fit Out - 161
2.7 Net cash from / (used in) investing activities (2,475) (11,165)
3. Cash flows from financing activities - 10,269
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt - (217)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities - 10,052
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 11,810 12,679
4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,097) (3,971)
4.3 Net cash from / (used in) investing activities (item 2.7 above) (2,475) (11,165)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - 10,052
4.5 Effect of movement in exchange rates on cash held (158) 485
4.6 Cash and cash equivalents at end of period 8,080 8,080
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 8,054 11,796
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other - Petty Cash 26 14
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 8,080 11,810
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 143
in item 1
6.2 Aggregate amount of payments to related parties and their associates included 264
in item 2
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
NOTE: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to the entity.
Add notes as necessary for an understanding of the sources of finance
available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (1,097)
8.2 (Payments for exploration & evaluation classified as investing activities) (3,980)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (5,077)
8.4 Cash and cash equivalents at quarter end (item 4.6) 8,080
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 8,080
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.6
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8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the
current level of net operating cash flows for the time being and, if not, why
not?
Answer: Yes
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer:
· Atlantic Lithium Ltd is funded under a co-development agreement
with Piedmont Lithium Inc. Piedmont continues to contribute on a monthly basis
under the co-development agreement.
· The Company implemented further cost-cutting measures during
the March 2025 quarter. Additionally, the Company will continue to closely
monitor its available cash and adjusting operating expenditure as required.
· Atlantic Lithium has agreed non-binding Heads of Terms with the
Minerals Income Investment Fund of Ghana ("MIIF") under which MIIF will invest
US$27.9m to acquire a 6% contributing interest in the Company's Ghana
subsidiaries. The Company continues to engage with MIIF representatives to
finalise this investment.
8.8.3 Does the entity expect to be able to continue its operations
and to meet its business objectives and, if so, on what basis?
Answer: Yes. The Company has funding available (see 8.8.2). The Company has
its remaining LR7.1 capacity if required. The Company has a strong track
record of being able to raise funds if required.
NOTE: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with
accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 30 April 2025
Authorised by: Authorised by the Board of Atlantic Lithium Limited
Notes
1. This quarterly cash flow report and the
accompanying activity report provide a basis for informing the market about
the entity's activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes to
disclose additional information over and above the minimum required under the
Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been
prepared in accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral
Resources and AASB 107: Statement of Cash Flows apply to this report. If this
quarterly cash flow report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as
cash flows from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release
to the market by your board of directors, you can insert here: "By the board".
If it has been authorised for release to the market by a committee of your
board of directors, you can insert here: "By the [name of board committee - eg
Audit and Risk Committee]". If it has been authorised for release to the
market by a disclosure committee, you can insert here: "By the Disclosure
Committee".
5. If this report has been authorised for release
to the market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
For any further information, please contact:
Atlantic Lithium Limited
Neil Herbert (Executive Chairman)
Amanda Harsas (Finance Director and Company Secretary)
www.atlanticlithium.com.au
IR@atlanticlithium.com.au
Tel: +61 2 8072 0640
SP Angel Corporate Finance LLP Yellow Jersey PR Limited Canaccord Genuity Limited
Nominated Adviser Charles Goodwin Financial Adviser:
Jeff Keating Bessie Elliot Raj Khatri (UK) /
atlantic@yellowjerseypr.com (mailto:atlantic@yellowjerseypr.com)
Charlie Bouverat
Duncan St John, Christian Calabrese (Australia)
Tel: +44 (0)20 3004 9512
Tel: +44 (0)20 3470 0470
Corporate Broking:
James Asensio
Tel: +44 (0) 20 7523 4500
Notes to Editors:
About Atlantic Lithium
www.atlanticlithium.com.au (http://www.atlanticlithium.com.au/)
Atlantic Lithium is an AIM, ASX, GSE and OTCQX-listed lithium company
advancing its flagship project, the Ewoyaa Lithium Project, a significant
lithium spodumene pegmatite discovery in Ghana, through to production to
become the country's first lithium-producing mine.
The Definitive Feasibility Study for the Project indicates the production of
3.6Mt of spodumene concentrate over a 12-year mine life, making it one of the
largest spodumene concentrate mines in the world.(1 2)
The Project was awarded a Mining Lease in October 2023, an Environmental
Protection Authority ("EPA") Permit in September 2024, and a Mine Operating
Permit in October 2024 and is being developed under an earn-in agreement with
Piedmont Lithium Inc.
The Ewoyaa Mineral Resource Estimate (JORC) totals 36.8Mt at 1.24% Li(2)O and
includes 3.7Mt at 1.37% Li₂O in the Measured category, 26.1Mt at 1.24%
Li₂O in the Indicated category and 7.0Mt at 1.15% Li₂O in the Inferred
category.(1) Ore Reserves (Probable) of 25.6Mt at 1.22% Li(2)O have been
reported for the Project.(1)
Atlantic Lithium holds a portfolio of lithium projects within 509km(2) and
771km(2) of granted and under-application tenure across Ghana and Côte
d'Ivoire respectively, which, in addition to the Project, comprises
significantly under-explored, highly prospective licences.
End Note
(1) Ore Reserves, Mineral Resources and Production Targets
The information in this report that relates to Exploration Results, Ore
Reserves, Mineral Resources and Production Targets complies with the 2012
Edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code). The information in this report
relating to the Mineral Resource Estimate ("MRE") of 36.8Mt at 1.24% Li₂O
for the Ewoyaa Lithium Project ("Ewoyaa" or the "Project") is extracted from
the Company's announcement entitled "New Dog-Leg Target Delivers Increase to
Ewoyaa MRE", dated 30 July 2024. The MRE includes a total of 3.7Mt at 1.37%
Li₂O in the Measured category, 26.1Mt at 1.24% Li₂O in the Indicated
category and 7.0Mt at 1.15% Li₂O in the Inferred category. The information
in this report relating to the Feldspar Mineral Resource Estimate ("Feldspar
MRE") of 36.8Mt at 41.9% feldspar for the Project is extracted from the
Company's announcement entitled "Updated Feldspar Resource Estimate", dated 30
January 2025. The MRE includes a total of 3.7Mt at 40.2% feldspar in the
Measured category, 26.1Mt at 42.1% feldspar in the Indicated category and
7.0Mt at 42.4% feldspar in the Inferred category. The information in this
report relating to Ore Reserves (Probable) of 25.6Mt at 1.22% Li(2)O and the
Production Target of 3.6Mt of spodumene concentrate over a 12-year mine life
is extracted from the Company's announcement entitled "Ewoyaa Lithium Project
Definitive Feasibility Study", dated 29 June 2023. The Company confirms, in
the case of Mineral Resources, Ore Reserves and Production Targets, that all
material assumptions and technical parameters underpinning the estimates
continue to apply. Material assumptions for the Project have been revised on
grant of the Mining Lease for the Project, announced by the Company on 20
October 2023 in the announcement entitled, "Mining Lease Granted for Ewoyaa
Lithium Project". The Company is not aware of any new information or data that
materially affects the information included in this report or the
announcements dated 30 January 2025, 30 July 2024, 20 October 2023 and 29 June
2023, which are available at www.atlanticlithium.com.au
(http://www.atlanticlithium.com.au) .
(2) Ewoyaa to become one of the largest spodumene concentrate producers
globally - Based on a comparison of targeted spodumene concentrate production
capacity (ktpa, 100% basis) of select hard rock spodumene projects globally
(refer Company presentation dated 8 September 2023).
Competent Persons
Information in this report relating to Mineral Resources was compiled by Shaun
Searle, a Member of the Australian Institute of Geoscientists. Mr Searle has
sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the 'Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and
is a Qualified Person under the AIM Rules. Mr Searle is a director of Ashmore.
Ashmore and the Competent Person are independent of the Company and other than
being paid fees for services in compiling this report, neither has any
financial interest (direct or contingent) in the Company. Mr Searle consents
to the inclusion in this report of the matters based upon the information in
the form and context in which it appears.
Information in this report relating to Ore Reserves was compiled by Mr Harry
Warries. All stated Ore Reserves are completely included within the quoted
Mineral Resources and are quoted in dry tonnes. Mr Warries is a Fellow of the
Australasian Institute of Mining and Metallurgy and an employee of Mining
Focus Consultants Pty Ltd. He has sufficient experience, relevant to the style
of mineralisation and type of deposit under consideration and to the activity
he is undertaking, to qualify as a Competent Person as defined in the
'Australasian Code for Reporting of Mineral Resources and Ore Reserves' of
December 2012 ("JORC Code") as prepared by the Joint Ore Reserves Committee of
the Australasian Institute of Mining and Metallurgy, the Australian Institute
of Geoscientists and the Minerals Council of Australia. Mr Warries gives
Atlantic Lithium Limited consent to use this reserve estimate in reports.
The Company confirms that the form and context in which the Competent Persons'
findings are presented have not been materially modified from the original
market announcement.
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