The Sal de Vida (Salt of Life) deposit is one of the world’s largest and highest quality undeveloped lithium brine deposits with significant expansion potential. In April 2013, Galaxy released a Definitive Feasibility Study (DFS), completed on schedule and within budget, which supports low cost, long life lithium and potash operation.
The DFS estimated a pre-tax net present value of US$645 million (US$380 million post tax) at 10% discount rate. Sal de Vida has the potential to generate total annual revenues in the region of US$215 million and operating cash flow before interest and tax of US$118 million per annum at full production rates.
Galaxy has also considered low cost, scalable development options at Sal de Vida. The options targeted have an initial capital investment limited to US$100 million and output of saleable product within two years of construction commencing. All development options consider modular designs, providing the flexibility to add units and scale up to the capacity of 25,000 tonnes per year of lithium carbonate and 95,000 tonnes of potassium chloride.
A maiden JORC-compliant Reserve estimate of 1.1 million tonnes of retrievable lithium carbonate equivalent and 4.2 million tonnes of potassium chloride (potash or KCI) equivalent supports total annual production over a 40 year period.
The DFS supports the development of Sal de Vida, which when completed, will include evaporation ponds, a battery grade lithium carbonate plant and a potash plant.
A $1m investment property vacant and not generating rental income is STILL worth $1m.
A US$645m mine not generating cash flow is STILL worth US$645m. None of the asset value is factored into current share price.
We are close to the bottom when clowns like ASB start churning out baseless garbage.
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