PFS Delivers Robust Project Economics for Project
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.
Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector: Mining
31 March 2025
Pre -Feasibility Study Delivers Robust Project Economics for the Zinnwald Lithium Project, Germany
The potential to be one of the largest integrated lithium operations in Europe
Zinnwald Lithium plc, the European focused lithium company developing the integrated Zinnwald Lithium Project (the 'Project') in Germany, is pleased to announce that a Pre-Feasibility Study ('PFS') has been published for its integrated Zinnwald Lithium Project (the 'Project') in Germany, prepared by Snowden Optiro.
HIGHLIGHTS
Strong economic potential
· PFS confirms the technical and financial viability of an integrated mining and processing operation at the 100% owned Zinnwald Lithium Project.
· €3.3 billion pre-tax Net Present Value ('NPV') at 8% discount rate, Post-Tax €2.2 billion.
· 23.6% pre-tax Internal Rate of Return ('IRR'), Post-Tax 19.8%.
· Life of Mine ('LOM') free cash flow post-tax of €12.1 billion.
· C1 cash operating cost of €8,403 per tonne lithium hydroxide monohydrate ('LHM') operating cost over the 41-year LOM.
· 5 year payback period from start of production for Phase 1 of the planned phased project.
Significant integrated lithium project
· Maiden Ore Reserve of 128 Mt grading 4,428ppm (0.44%) Li₂O supporting a phased development strategy:
o Phase 1: Forecast 18,000 tonnes per annum ('tpa') of LHM
o Phase 2: Forecast peak production of 35,100 tpa LHM, effectively doubling capacity within Phase 1 project footprint.
· The mine is located within a granted Mining Licence in a historic mining district with well developed infrastructure.
Sustainable
· Significant contributor to the region in terms of taxation and employment opportunities.
· Underground mining operation, including primary crushing, minimising surface impact.
· 9.1 km underground tunnel to transport ore to the processing facility, minimising impact on local communities and nearby Natura 2000 and UNESCO World Heritage sites.
· Recycled process water and potential for renewable energy integration.
· Planned backfilling of waste streams into underground mined voids to materially reduce above-ground storage footprint.
· Stacked beneficiation tailings, with potential applications in construction and cement production, reducing waste disposal.
Strategic
· Positioned to support Europe's lithium supply chain, with the market forecast to grow at a compound annual growth rate ('CAGR') of over 20%, driven by electric vehicle ('EV') adoption and energy storage.
· Advancing towards a Definitive Feasibility Study, which will refine engineering designs and optimise cost estimates.
The Executive Summary from the PFS can be read and downloaded at:
http://www.rns-pdf.londonstockexchange.com/rns/8115C_1-2025-3-30.pdf
Zinnwald Lithium CEO, Anton du Plessis, commented: "We are delighted to announce the publication of this high quality PFS for the Zinnwald Lithium Project in Germany, which confirms its strong economic fundamentals, generating over € 12 billion in free cash flows over the 40 year mine life."
"Designed to support Europe's growing demand for battery-grade lithium hydroxide, the PFS outlines a two-phase development strategy for the Project. Phase 1 targets annual production of 18,000 tonnes at an operating cost of €8,158 per tonne with Phase 2 set to double production to a peak of approximately 35 ktpa. Notably this would make the Zinnwald operation one of the largest fully integrated lithium hydroxide production facilities in Europe."
"Sustainability remains a key driver in the design philosophy. We are committed to a zero-liquid discharge policy, stacked beneficiation tailings for potential reuse in construction, and a 9.1 km underground tunnel to minimise surface disruption and traffic. Additionally, by adopting Metso's alkaline leach process, we aim to reduce energy consumption and waste. While these initiatives impact capital expenditure, we believe they are essential in developing a sustainable project of relevant scale."
"With a busy period ahead, we look forward to providing updates on our progress as we work to establish a sustainable lithium operation that delivers lasting value for both local stakeholders and shareholders."
Note: 2025 PFS primary financial model metrics
|
Description |
Unit |
Value |
|
Pre-tax NPV (at 8% discount) |
EUR M |
3,328 |
|
Pre-tax IRR |
% |
23.6% |
|
Post-tax NPV (at 8% discount) |
EUR M |
2,187 |
|
Post-tax IRR |
% |
19.8% |
|
Simple payback |
Years |
4.6 |
|
Initial construction capex |
EUR M |
1,048 |
|
Average LOM opex (pre by-product credits) |
EUR/t LHM |
9,505 |
|
Average LOM opex (post by-product credits) |
EUR/t LHM |
8,403 |
|
Average LOM revenue |
EUR M pa |
741 |
|
Average annual EBITDA (post byproducts credits) |
EUR M pa |
484 |
|
Annual average LHM production |
KTonnes/annum |
27 |
|
Average LHM price achieved |
EUR/t LHM |
26,288 |
Qualified Persons
The independent Qualified Persons are Laurie Hassall (MSci FIMMM QMR FGS) and Rodrigo Pasqua (FAusIMM, BEng (Mining)) of Snowden Optiro and are both Qualified Persons as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Mr Hassall and Mr Pasqua have reviewed and approved the content of this release.
*ENDS*
For further information visit the Zinnwald website www.zinnwaldlithium.com or sign up to our investor community to connect directly with the management team investors.zinnwaldlithium.com/auth/signup.
|
Anton du Plessis Cherif Rifaat
Submit questions via the Zinnwald investor hub |
Zinnwald Lithium Plc |
|
|
David Hart Dan Dearden-Williams |
Allenby Capital (Nominated Adviser) |
+44 (0) 20 3328 5656 |
|
Michael Seabrook Adam Pollock |
Oberon Capital Ltd (Joint Broker) |
+44 (0) 20 3179 5300 |
|
Richard Greenfield Charles Bendon |
Tamesis Partner LLP (Joint Broker) |
+44 (0) 20 3882 2868 |
|
Isabel de Salis Paul Dulieu |
St Brides Partners (Financial PR) |
zinnwald@stbridespartners.co.uk
|
Notes
AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focused on becoming an important supplier of
lithium hydroxide to Europe's fast-growing battery sector. The Company owns 100% of the Zinnwald Lithium Project in Germany, which has an approved mining licence, is located in the heart of Europe's chemical and automotive industries and has the potential to be one of Europe's more advanced battery grade lithium projects.
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