REG - Zinnwald Lithium PLC - PFS Delivers Robust Project Economics for Project

Zinnwald LithiumAnnouncement

31/03/2025 07:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250331:nRSe8115Ca&default-theme=true

RNS Number : 8115C  Zinnwald Lithium PLC  31 March 2025

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain.

 

Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector: Mining

31 March 2025

 

Pre -Feasibility Study Delivers Robust Project Economics for the Zinnwald
Lithium Project, Germany

 

The potential to be one of the largest integrated lithium operations in
Europe

 

Zinnwald Lithium plc, the European focused lithium company developing the
integrated Zinnwald Lithium Project (the 'Project') in Germany, is pleased to
announce that a Pre-Feasibility Study ('PFS') has been published for its
integrated Zinnwald Lithium Project (the 'Project') in Germany, prepared by
Snowden Optiro.

 

HIGHLIGHTS

Strong economic potential

·    PFS confirms the technical and financial viability of an integrated
mining and processing operation at the 100% owned Zinnwald Lithium Project.

·      €3.3 billion pre-tax Net Present Value ('NPV') at 8% discount
rate, Post-Tax €2.2 billion.

·      23.6% pre-tax Internal Rate of Return ('IRR'), Post-Tax 19.8%.

·      Life of Mine ('LOM') free cash flow post-tax of €12.1 billion.

·     C1 cash operating cost of €8,403 per tonne lithium hydroxide
monohydrate ('LHM') operating cost over the 41-year LOM.

·      5 year payback period from start of production for Phase 1 of the
planned phased project.

 

Significant integrated lithium project

·      Maiden Ore Reserve of 128 Mt grading 4,428ppm (0.44%) Li₂O
supporting a phased development strategy:

o  Phase 1: Forecast 18,000 tonnes per annum ('tpa') of LHM

o  Phase 2: Forecast peak production of 35,100 tpa LHM, effectively doubling
capacity within Phase 1 project footprint.

·      The mine is located within a granted Mining Licence in a historic
mining district with well developed infrastructure.

 

Sustainable

·      Significant contributor to the region in terms of taxation and
employment opportunities.

·      Underground mining operation, including primary crushing,
minimising surface impact.

·     9.1 km underground tunnel to transport ore to the processing
facility, minimising impact on local communities and nearby Natura 2000 and
UNESCO World Heritage sites.

·      Recycled process water and potential for renewable energy
integration.

·   Planned backfilling of waste streams into underground mined voids to
materially reduce above-ground storage footprint.

·    Stacked beneficiation tailings, with potential applications in
construction and cement production, reducing waste disposal.

 

Strategic

·    Positioned to support Europe's lithium supply chain, with the market
forecast to grow at a compound annual growth rate ('CAGR') of over 20%, driven
by electric vehicle ('EV') adoption and energy storage.

·     Advancing towards a Definitive Feasibility Study, which will refine
engineering designs and optimise cost estimates.

 

The Executive Summary from the PFS can be read and downloaded at:

http://www.rns-pdf.londonstockexchange.com/rns/8115C_1-2025-3-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8115C_1-2025-3-30.pdf)

 

Zinnwald Lithium CEO, Anton du Plessis, commented:  "We are delighted to
announce the publication of this high quality PFS for the Zinnwald Lithium
Project in Germany, which confirms its strong economic fundamentals,
generating over € 12 billion in free cash flows over the 40 year mine life."

 

"Designed to support Europe's growing demand for battery-grade lithium
hydroxide, the PFS outlines a two-phase development strategy for the Project.
Phase 1 targets annual production of 18,000 tonnes at an operating cost of
€8,158 per tonne with Phase 2 set to double production to a peak of
approximately 35 ktpa. Notably this would make the Zinnwald operation one of
the largest fully integrated lithium hydroxide production facilities in
Europe."

 

"Sustainability remains a key driver in the design philosophy. We are
committed to a zero-liquid discharge policy, stacked beneficiation tailings
for potential reuse in construction, and a 9.1 km underground tunnel to
minimise surface disruption and traffic. Additionally, by adopting Metso's
alkaline leach process, we aim to reduce energy consumption and waste. While
these initiatives impact capital expenditure, we believe they are essential in
developing a sustainable project of relevant scale."

 

"With a busy period ahead, we look forward to providing updates on our
progress as we work to establish a sustainable lithium operation that delivers
lasting value for both local stakeholders and shareholders."

 

Note: 2025 PFS primary financial model metrics

 Description                                      Unit           Value
 Pre-tax NPV (at 8% discount)                     EUR M          3,328
 Pre-tax IRR                                      %              23.6%
 Post-tax NPV (at 8% discount)                    EUR M          2,187
 Post-tax IRR                                     %              19.8%
 Simple payback                                   Years          4.6
 Initial construction capex                       EUR M          1,048
 Average LOM opex (pre by-product credits)        EUR/t LHM      9,505
 Average LOM opex (post by-product credits)       EUR/t LHM      8,403
 Average LOM revenue                              EUR M pa       741
 Average annual EBITDA (post byproducts credits)  EUR M pa       484
 Annual average LHM production                    KTonnes/annum  27
 Average LHM price achieved                       EUR/t LHM      26,288

 

Qualified Persons

The independent Qualified Persons are Laurie Hassall (MSci FIMMM QMR FGS) and
Rodrigo Pasqua (FAusIMM, BEng (Mining)) of Snowden Optiro and are both
Qualified Persons as defined by National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.

 

Mr Hassall and Mr Pasqua have reviewed and approved the content of this
release.

 

*ENDS*

 

For further information visit the Zinnwald website www.zinnwaldlithium.com
(http://www.zinnwaldlithium.com/) or sign up to our investor community to
connect directly with the management team
investors.zinnwaldlithium.com/auth/signup
(https://investors.zinnwaldlithium.com/auth/signup) .

 Anton du Plessis                                 Zinnwald Lithium Plc  info@zinnwaldlithium.com (mailto:info@zinnwaldlithium.com)

 Cherif Rifaat

 Submit questions via the Zinnwald investor hub                         https://investors.zinnwaldlithium.com/link/KyzZly
                                                                        (https://investors.zinnwaldlithium.com/link/KyzZly)
 David Hart                                       Allenby Capital       +44 (0) 20 3328 5656

 Dan Dearden-Williams                             (Nominated Adviser)
 Michael Seabrook                                 Oberon Capital Ltd    +44 (0) 20 3179 5300

 Adam Pollock                                     (Joint Broker)
 Richard Greenfield                               Tamesis Partner LLP   +44 (0) 20 3882 2868

 Charles Bendon                                   (Joint Broker)
 Isabel de Salis                                  St Brides Partners    zinnwald@stbridespartners.co.uk (mailto:zinnwald@stbridespartners.co.uk)

 Paul Dulieu                                      (Financial PR)

 

Notes

AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focused on becoming an
important supplier of

lithium hydroxide to Europe's fast-growing battery sector. The Company owns
100% of the Zinnwald Lithium Project in Germany, which has an approved mining
licence, is located in the heart of Europe's chemical and automotive
industries and has the potential to be one of Europe's more advanced battery
grade lithium projects.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEAKDEDLSSEFA