Develop Global release updated Pioneer Dome Scoping Study
Hybrid
Develop Global this month released an updated scoping study for the Pioneer Dome project in Western Australia. The study incorporates an updated mine plan which transitions the project from a large-scale open pit operation to a hybrid open pit and underground operation.
Capital expenditure was estimated at A$388.1M ($260M) for a 1.2 Mtpa DMS and flotation plant producing 200 ktpa SC5.5 for 7 years.
Operating costs came in at A$1,178/t ($789/t) SC6 on an AISC basis, FOB Esperance. Using a flat price of $1,393/t SC6 CIF China, the NPV8% was estimated at A$373M ($250M) pre-tax.
The study also assessed mine gate sale or toll treatment scenarios costing just A$35-40M. The company stated this option could work at today’s prices but would consider building the concentrator if prices rose above $1,500/t SC6.
L'avis d'Adamas :
Although the new study eliminates substantial waste handling (from 117.4Mt to 8.5Mt), the hybrid mine plan has resulted in a 43% hike in costs since the February 2023 PEA.
Only a fraction of this delta can be attributed to inflation, so a win for the environment via minimized surface disturbance has resulted in a loss for the project’s economics.
As stated by the company, to build the full plant would require an incentive price of at least $1,500/t SC6. Not shown in the study are Develop’s acquisition costs of the project in 2023, which at the time was A$152.6M ($101.60M) in scrip.
At today’s Li prices, there remains little value for the project when incorporating acquisition costs and taxation.
[Extrait du numéro de mai de la service EV Battery Lithium Monthly .]
Image: Port of Esperance
Chris Williams, analyste chez Adamas Intelligence
Chris est analyste chez Adamas Intelligence, où il se consacre au secteur mondial du lithium. Il mène des recherches et analyse la chaîne de valeur du lithium afin d'identifier des opportunités concrètes pour les clients.
Chris possède 11 ans d'expérience dans l'optimisation des opérations minières et pétrolières et gazières, où il a su créer de la valeur grâce à l'analyse de données à grande échelle. Il a obtenu une licence et un master en ingénierie à l'université du Queensland, avec une spécialisation en génie mécanique, et termine actuellement un master en administration des affaires à l'université de Colombie-Britannique.
