REG - Atlantic Lithium Ltd - Corporate Update – 2022 Annual Financial Report
30/09/2022 08:45
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RNS Number : 3151B Atlantic Lithium Limited 30 September 2022
2022 Financial Report
Major milestones achieved at the Ewoyaa Project to deliver
Ghana's first lithium-producing mine
Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTC: ALLIF, "Atlantic Lithium"
or the "Company"), the funded African-focussed lithium exploration and
development company targeting to deliver Ghana's first lithium mine, is
pleased to announce its audited results for the year ended 30 June 2022.
A full copy of 2022 Annual Report is available through the Investor Centre of
the Company's website https://www.atlanticlithium.com.au/
(https://www.atlanticlithium.com.au/) or can be viewed in the PDF version via
the following link:
http://www.rns-pdf.londonstockexchange.com/rns/3151B_1-2022-9-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3151B_1-2022-9-30.pdf)
Operational highlights:
· JORC (2012) Mineral Resource Estimate ("MRE") upgrade to 30.1Mt at
1.26% Li(2)O, representing a 42% increase, for the Ewoyaa Lithium Project
("Ewoyaa"), part of the Cape Coast Lithium Project portfolio in Ghana
o Upgrade to 21.3Mt at 1.31% Li(2)O, representing a 47% increase, announced
earlier in the reporting period.
· Scoping Study announced on Ewoyaa, which incorporated the 21.3Mt JORC
resource, demonstrating a significant improvement in project economics.
Corporate highlights:
· Landmark agreement with Piedmont Lithium Inc. (NASDAQ: PLL, ASX: PLL)
to fund Ewoyaa, via a staged earn in of US$103 million, to production.
· Grant of the Cape Coast exploration license in Ghana, providing the
Company access to 139.23km(2) of highly prospective lithium tenure adjacent
to its existing portfolio, bringing the total Ghana Cape Coast Lithium
Portfolio to 560km(2).
· Successful demerger of the Company's gold assets in Côte d'Ivoire
and Chad into a new unlisted public entity, Ricca Resources Limited, enabling
the Company to focus on the development of its lithium assets.
· Appointment of the Company's Chief Operating Officer, Len Kolff, to
the Board of Directors and also as the Company's Interim Chief Executive
Officer following the passing of Founder, Chief Executive Officer and Managing
Director Vincent Mascolo.
· Appointment of the Company's Chief Financial Officer and Company
Secretary Amanda Harsas to the Board as Finance Director.
· Commenced trading on the OTCQX Best Market ("OTCQX") trading platform
in the USA, under the ticker "IRRLF".
Financial highlights:
· Exploration and evaluation expenditure held on the balance sheet for
the year ended 30 June 2022 was A$11.1 million (2021: A$51.4 million).
· Cash position at 30 June 2022 of A$23.9 million (2021: A$19.1
million).
Post-period end highlights:
· Robust Pre-Feasibility Study ("PFS"), which incorporates the
increased JORC resource of 30.1Mt at 1.26% Li(2)O, announced for the Ewoyaa
Project, indicating revenues in excess of US$4.84bn in revenues over a
12.5-year mine life.
· Successful admission of the Company's shares on the Official List of
the Australian Securities Exchange ("ASX"), under the ticker 'A11'.
Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
"I am delighted to report the Company's results for the year ended 30 June
2022. Now purely focused on our lithium portfolio, following the successful
demerger of the Company's gold assets, we have continued to make great
strides, both operationally and commercially, as we work to bring on stream
substantial lithium production in Ghana.
"A major milestone for the Company was securing the funding agreement with
NASDAQ-listed Piedmont Lithium Inc., setting the Ewoyaa Lithium Project, part
of the wider Cape Coast portfolio, on the path to becoming Ghana's first
lithium-producing mine. The agreement recognises the Project as an
industry-leading lithium asset, removes funding risks for the Company's
shareholders and enables the Company to invest in growth. It is a major
endorsement of the Company's strategy to date.
"Over the period, we increased the Mineral Resource Estimate for Ewoyaa twice,
as well as delivering a Scoping Study and, post-period end, an impressive
Pre-Feasibility Study on the Project. The PFS, which incorporates the
increased JORC resource of 30.1Mt at 1.26% Li(2)O, outlines a robust 2Mtpa
operation, generating in excess of US$4.84bn in revenues over a 12.5-year mine
life, with payback within as little as 20 weeks. We have long been confident
of the considerable profitability that Ewoyaa offers, but the PFS provides
valuable third-party vindication of our belief. It is also important to note
that ongoing drilling is intended to grow the resource further.
"Our intention for the demerger was to focus time, resources and effort upon
realising the significant potential value, which was not being fully
appreciated, of our lithium assets. It is clear that this strategy has begun
to deliver the intended results. Atlantic Lithium is now in an excellent
position to advance Ewoyaa through studies to reach production, and, in doing
so, return significant value to the Company's shareholders and also long-term
benefits to all stakeholders.
"As always, we would like to thank our loyal shareholders for their continued
support and all of the Company's employees and contractors for their hard
work.
"Pushing ahead, we aim to further increase the resource at Ewoyaa, with an
update expected later this year or at the beginning of next year, before
delivering a Definitive Feasibility Study in 2023.
"We look forward to updating the market on our progress in due course."
For any further information, please contact:
Atlantic Lithium Limited Tel: +61 2 8072 0640
Neil Herbert (Executive Chairman)
Amanda Harsas (Finance Director and Company Secretary)
www.atlanticlithium.com.au (http://www.atlanticlithium.com.au)
atlantic@yellowjerseypr.com (mailto:atlantic@yellowjerseypr.com)
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Nominated Adviser
Jeff Keating
Charlie Bouverat
Canaccord Genuity Limited
Joint Company Broker Tel: +44 (0) 20 7523 4500
Raj Khatri
James Asensio
Harry Rees
Liberum Capital Limited Tel: +44 (0) 20 3100 2000
Joint Company Broker
Scott Mathieson
Edward Thomas
Kane Collings
SI Capital Limited Tel: +44 (0) 1483 413 500
Joint Company Broker Tel: +44 (0) 207 871 4038
Nick Emerson
Jon Levinson
Yellow Jersey PR Limited Tel: +44 (0)20 3004 9512
Henry Wilkinson
Dominic Barretto
James Lingfield
Notes to Editors:
About Atlantic Lithium
www.atlanticlithium.com.au (http://www.atlanticlithium.com.au/)
Atlantic Lithium (formerly "IronRidge Resources") is an AIM and ASX-listed
lithium exploration and development company advancing a portfolio of lithium
projects and licenses in Ghana and Côte d'Ivoire through to production.
The Company's flagship project, the Ewoyaa Project in Ghana, is a significant
lithium spodumene pegmatite discovery on track to become Ghana's first
lithium-producing mine. The Company signed a funding agreement with Piedmont
Lithium Inc. for US$103m towards the development of the Ewoyaa Project. Based
on the Pre-Feasibility Study, the Ewoyaa Project has indicated Life of Mine
revenues exceeding US$4.84bn, producing a spodumene concentrate via simple
gravity only process flowsheet.
Atlantic Lithium holds 560km(2) & 774km(2) of tenure in Ghana and Côte
d'Ivoire respectively, comprising significantly under-explored licenses.
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