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Infinity Lithium predicts US$16.7b EBITDA in Spain

Updated: Apr 30

Infinity Lithium’s proposed San José project in Spain. Credit: File

Infinity Lithium has splashed out a stunning EBITDA of US$16.7 billion (AU$26 billion) for its San José project in Spain in an updated scoping study that outlines a 26-year mine life and annual production of 2 million tonnes. The company’s new study shows a post-tax net present value of US$2.87 billion (AU$4.47 billion) and an internal rate of return of 21.3 per cent. It outlines a pre-production CAPEX after contingencies of US$1.54 billion (AU$2.4 billion), with a post-tax payback period of 4.2 years.

The figures are based on a steady state production of 33,000 tonnes per annum of lithium hydroxide monohydrate (LHM) at an assumed average price of US$27,000 (AU$42,000) per tonne of LHM.

The project sits near the town of Cáceres in the region of Extremadura and boasts one of Europe's leading JORC-compliant hard-rock lithium deposits, with a total indicated and inferred resource base of 111 million tonnes at 0.61 per cent lithium oxide. The company’s wholly-owned Spanish subsidiary, Extremadura New Energies, is proposing a fully-integrated mining and downstream processing project to produce battery-grade LHM from a lithium mica feedstock.

Another subsidiary, Infinity Greentech, has confirmed improvements in recoveries and the successful production of battery-grade lithium hydroxide through the application of its “Li-Stream RPK” process.

Management says its lithium conversion process has confirmed more than 90 per cent recoveries from run-of-mine (ROM) to lithium products. It has also established the production of battery-grade lithium hydroxide through the direct processing of ROM from San José.

The company plans to mine lithium ore and also refine it into lithium chemicals suitable for European battery makers.

Infinity Lithium managing director and chief executive officer Ryan Parkin said: “The significant advancements in our R&D programs have demonstrated material upside potential for San José and present an opportunity for other non-traditional sources of lithium bearing materials to utilise our intellectual property to maximise lithium recoveries whilst providing significant social and environmental upside.”

The company retains 75 per cent ownership in the project through Extremadura New Energies. Valoriza Mineria holds the remaining 25 per cent, with Infinity maintaining an option to acquire that company’s interest prior to the final investment decision. Management says the results of the latest study are presented on a 100 per cent ownership basis.

San José was originally intended to be an open-pit mine. However, after consultation with regional authorities, the project has been redesigned as an underground mining operation that will lessen its impact on the surrounding region.

Infinity says its underground deposit will be accessed through a tunnel at the beneficiation plant and will deliver no visual, audible or vibration-based effects to the people of Cáceres.

Earlier this year, the company secured a long-term land lease from local owners for the development of its San José lithium project in Spain, for a minimum of 35 years through Extremadura New Energies. According to the agreement, the leased land is already zoned industrial, located within a granted exploration permit and includes the San José lithium deposit.

And the latest scoping study numbers have also now added a significant financial flourish to the operation.

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