Astika Holdings Inc (ASKH)

[NewJerichoMan]

Per the Biz Plan, the Fengxin 9,000,000 ton Lithium Solid Waste Recycling Project (partnered with Gotion), is located in Hekanshang, Fengxin County, Yichun, Jiangxi, and is focused on the comprehensive utilization of lithium solid waste resources. The total investment for Phase 1 is RMB 913M ($129M USD), with a construction period of 4 months from March 2024 to September 2024. The project anticipates processing 4M tons of lithium solid waste annually, producing various products, including high-quality porcelain powder, small and large components, and special mortar.

In terms of profitability, the project is expected to generate annual operating income of RMB 2620.6 million ($368M USD), with an annual production cost of RMB 1764 million ($240M USD). This results in an anticipated annual total net profit of about RMB 571.7925 million ($81M USD). The post-tax financial net present value is projected to be RMB 3485.2328 million ($495M USD). The total net return on investment of 62.62%.

The breakeven point for the project investment is 11.90%, and the investment payback period is estimated to be 1.6 years. It's worth noting that the early collection of lithium solid waste treatment fees for 3 years is considered, potentially shortening the actual payback period.