HARARE – Australian-listed Prospect Resources whose flagship project is the 87% owned Arcadia Lithium Project located on the outskirts of Harare in Zimbabwe, gave a bullish 2019 outlook saying it is positioned to meet market demand where the battery sector is expected to increasingly dominate lithium demand from 54% market share in 2018 to an estimated 86% share by 2025.
“Prospect is positioned to supply this market with its battery grade petalite and spodumene concentrates,” said the Group’s MD Sam Hosack.
The company reported half year to 31 December 2018 revenue of $3.5 million, which is an increase of 122% compared to $1.6 million recorded in the same period in 2017. However, the company incurred a loss position of -$4.1 million representing a decline of 57% from -$2.6 million in the same period in 2017.
Prospect attributed the loss position to explorations costs currently underway at Arcadia mine.
The Arcadia Lithium Project which is considered to be one of the world’s biggest hard rock lithium resources provides Prospect with a globally unique position to be the only lithium producer that will produce both spodumene and petalite.
The Arcadia lithium project is estimated to produce an average of 75,000 tonnes per annum of spodumene and 155,000tpa of petalite concerntrates during its 20-year mine life.
In this regard, prospect says it is “positioned to be the largest petalite producer in the world.”
On a global scale, the growth in electric vehicles production which is expected to increase significantly over the next few years which in turn is expected to push lithium demand to even greater heights.
Although the lithium market suffered from an oversupply in 2018, long-term demand is likely to wipe out surplus and price for the battery metal is likely to continue their march higher.
“Lithium demand is expected to grow at 22% p.a until 2025. This equates to demand more than tripling over the next 6 years,” said Hosack.
Zimbabwe is currently the 5th largest producer of lithium globally, with Zimbabwe’s total mining industry currently exporting over US$2.4B p.a.1
Prospect expressed optimism that the fiscal and monetary policy reforms put in place by the finance ministry and central bank respectively effectively position Zimbabwe for economic recovery, underpinned by foreign investment.
-Equity Axis News