International Battery Metals Ltd (IBATF)

[D8c00p3r]

AZL is quickly advancing its 100%-owned Prairie Lithium Project in Saskatchewan, with commercial production planned for mid-2025, having already secured approval for three production wells (and two more to come). It is using existing Direct Lithium Extraction (DLE) from EnergySource Minerals and a modular approach will provide scalability and a lower environmental footprint.
Solid economics even at an initial small scale of 6ktpa . Based on the Dec-23 PFS, Prairie will be a 6ktpa Lithium Carbonate operation for total Capex of A$485m. At our US$20,000/t long term Lithium Carbonate price (minus a US$2,600/t deduction for technical grade), Prairie generates A$103m/pa EBITDA, an IRR of 26% and significant valuation upside

On our modelling, AZL is expected to have low cash costs of US$3,084/t and AISC of US$5,000/t LCE. . There is also significant leverage, with each additional 2ktpa LCE module adding A$80m in NPV and every 10% increase in pricing adding c.A$150m in valuation.