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Prospect Resources: Production costs should drop significantly!

The Australian Prospect Resources (ASX PSC / MRS 5E8), which is developing the huge Arcadia lithium project in Zimbabwe (87% prospect), today has some important news that could have a significant impact on the economics of the project. As Prospect announced, the petalit recovery rate could almost be doubled!

Arcadia is already well advanced in development and has the special feature that not only spodum concentrate is to be produced for the electromobility sector, but also an ultra-low-iron petalite product for the glass ceramic market. Which gets a higher price than the spodumene.

Prospect has the potential to become the first petalite and lithium mineral producer to serve the glass-ceramic market, which is otherwise supplied with lithium carbonate. Now the company has completed Arcadia flotation tests that demonstrate a significant improvement.

Since the final feasibility study was completed last November, Prospect has focused on improving petalite extraction to meet demand from leading end customers in the glass ceramic sector. The study had certified the Arcadia project’s net present value of $ 710 million at that time, assuming a petalite recovery rate of 31%. But now Prospect expects to increase this to 60%!

With the tests, it was possible to achieve a product specification that was superior to that resulting from the swim-sink separation. Individual flotation tests showed a higher lithium oxide content of 4.5%, while the iron oxide content fell to 0.02%. Both enable customers to use the material more easily. Due to the higher lithium oxide content in the market for clear glass, it is expected to be able to achieve an even higher premium than in the market for ceramics and black glass.

Due to the significant increase in the petalite recovery rate, further work is now underway to better understand the economic benefits of this development. Given the prospect of almost doubling petalite production, Prospects Managing Director Sam Hosack expects operational costs per ton of petalite and spodumene to fall. Further work is needed to determine this effect more precisely, he explained. If one takes into account the expected contribution from tantalum production and the high-priced petalite, Hosack also said, Prospect can confidently aim to become the spodumene producer with the lowest costs worldwide!

A recently released video interview with Prospects MD is here:

Investor Updates with Sam Hosack, MD Prospect Resources & The Market Herald – July 2020

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In accordance with section 34b of the WpHG and section 48f (5) BörseG (Austria), we would like to point out that clients, partners, authors and employees of GOLDINVEST Consulting GmbH can hold shares in Prospect Resources and therefore there is a potential conflict of interest. We can also not rule out that other stock market letters, media or research companies will discuss the values ​​we recommend in the same period. Therefore, symmetrical information and opinion generation can occur during this period. There is also a consulting or other service contract between a third party who is in the warehouse of Prospect Resources and GOLDINVEST Consulting GmbH, which creates a conflict of interest, especially since this third party pays GOLDINVEST Consulting GmbH for reporting on Prospect Resources. This third party may also hold, sell, or buy shares in the issuer, and would benefit from an increase in Prospect Resources shares. This is another, clear conflict of interest.

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