American Lithium sees Peru project value triple to $5 billion

American Lithium

10/01/2024 17:08

LIMA, Jan 10 (Reuters) - Canadian miner American Lithium
 LI.V  said on Wednesday that the estimated value of its
Falchani lithium project in Peru had tripled from the previous
forecast to $5.11 billion and that it would have a potential
operating life of 32 years.
    Demand for lithium, a key metal used in rechargeable
batteries for electric vehicles and other electronics, has
soared in recent years.
    Shares in American Lithium were up more than 5% mid-morning
after the company raised the after-tax value of the Falchani
project from the $1.5 billion estimated in 2019 on the current
price of high-purity lithium carbonate.
    The project, located in southern Peru near the border with
Bolivia, is awaiting government approval of an early 
environmental permit study, which could fast track construction
permits. 
    American Lithium last year quadrupled its deposit estimate
at Falchani to 5.53 million metric tons of lithium carbonate
equivalent following new drilling at the project.
    It is the only lithium project underway in Peru, which
neighbors the so-called "lithium triangle" of Chile, Argentina
and Bolivia, which all hold significant deposits of the white
metal.
    Peru is also the second-largest copper producer in the
world.
    Falchani could also produce potash sulfate and cesium
sulfate byproducts alongside lithium carbonate, which would
bring the project's after-tax value to $5.58 billion, American
Lithium said.
    The preliminary economic assessment demonstrates
"the existing potential for high annual production and long
mine-life at Falchani," CEO Simon Clarke said in a statement.

 (Reporting by Marco Aquino; Writing by Kylie Madry, editing by
Emelia Sithole-Matarise)
 ((mailto:marco.aquino@thomsonreuters.com; +511 2779553; Reuters
Messaging: rm://marco.aquino.reuters.net@thomsonreuters.com/))