Kidman Resources (KDR) release an Integrated Prefeasibility Study (PFS) on the Mt Holland Lithium Project (50% KDR, 50% SQM). The study incorporates a mine, spodumene concentrator and lithium hydroxide (LiOH) refinery. This is an update on the October 2018 study which had the mine and concentrator at a scoping level only. The release incorporates a maiden Ore Reserve of 94.2Mt @ 1.5% Li2O. Key changes to the previous study include a US$18m decrease in capex (before owner costs) to US$737m and an 8% increase in C1 costs to US$4,507/t. KDR’s estimated post-tax NPV10, applying a life of mine (LOM) average LiOH price of US$15,115/t, decreased from US$2.3b to US$2.2b and the IRR decreased 1.1% to 26.6%. Argonaut maintains a BUY recommendation with a revised target price or $2.00 (previously $2.10).
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