Kathleen Valley Lithium Project

OPPORTUNITY

The 100%-owned Kathleen Valley (KV) Project is a Tier-1 battery metals asset with excellent grade and scale in one of Western Australia’s best mining districts.  

A recently updated Definitive Feasibility Study (DFS) has confirmed the potential to develop a state-of-the-art, second generation lithium-tantalum mining and processing operation with exceptionally strong financial and technical merits, combined with a class-leading sustainability and ESG framework.

The Project is well positioned to benefit from the significant lithium supply deficit forecast to emerge from 2024, expected to align with production commencement at KV.

LOCATION

The Project is located on four granted Mining Licences and one Mining Licence Application, approximately 680km north-east of Perth and 400km north of Kalgoorlie in the North-eastern Goldfields of Western Australia. The Project is readily accessible by sealed highways which connect with mineral exporting ports at both Geraldton and Esperance and surrounding by excellent infrastructure.

Figure 1: Kathleen Valley Project – Location, infrastructure, existing mines, and regional geology.

PROJECT HIGHLIGHTS

Globally significant Tier 1 Project:

  • World-class lithium deposit with a globally significant Mineral Resource Estimate (MRE) of 156Mt @ 1.4% Li2O.
  • Exceptional economics, delivering a post-tax NPV8 of A$4.2bn and IRR of 57%.

Low cost, long-life scalable operations:

  • Current resource base supports an initial ~23-year life of mine, with Liontown targeting further expansion.
  • Low cash operating costs of US$314/dmt (Years 1-5)1 and capital intensity below other spodumene development projects.

Timed to perfection:

  • Significant supply deficits forecast to emerge from 2024, expected to align with start of production at KV.
  • KV is positioned to become one of very few projects advanced enough to meet demand, with full offtake optionality.

Strong ESG focus:

  • Liontown is on a net zero trajectory, with a climate strategy roadmap in place targeting net zero emissions by 2034.
  • Leveraged underground mining approach to achieve a strong ESG profile relative to peers.

Clear and achievable long-term strategy:

  • DFS contemplates an expansion of SC6.0 production from ~500ktpa to ~700ktpa facilitating downstream ambition.
  • Updated Downstream Scoping Study (post-tax NPV8 of A$9.6bn, IRR of 56%) provides value maximising pathway.

Funding & Offtake Advanced:

  • Actively progressing all funding options. Board confident that funding will be in place prior to FID Q2 2022.
  • Offtake discussions well advanced with potential customers, diversified by geography and stage in the value chain.

For further information, please read the following key ASX Announcements:

  • “Kathleen Valley DFS confirms Tier-1 global lithium project with outstanding economics and sector-leading sustainability credentials”, 11 November 2021.
  • “Updated Downstream Scoping Study Highlights Next Growth Horizon for Kathleen Valley Project”, 11 November 2021.
  • “Kathleen Valley confirmed as a world-class lithium deposit as Mineral Resource increases to 156Mt @ 1.4% Li2O”, 11 May 2020.
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For further information please see our Investor Presentation and ASX Announcements.

Figure 2: Kathleen Valley Project – Drilling Operation.

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