- The company was also debt free despite being involved in a major expansion project
- Driven by surge in electrical car sales in China
- Arcadia pilot plant 70 percent complete
Harare – ASX listed lithium company with operations in Zimbabwe, Prospect Resources Limited says despite being involved in a major expansion project they managed to finish the first quarter to 31 March 2021 debt-free with a cash balance of A$4.2 million (US$3.3 million).
This came after a surge in lithium demand and pricing especially in China driven by the rapidly growing electrical car industry.
In March only, electric car sales in China are reported to have been over 210,000 for March 2020 representing a 244 percent surge in year-on-year terms.
Meanwhile, the company says the expansion project of their flagship operation, Arcadia Lithium Zimbabwe has reached an advanced stage.
Where the pilot plant is concerned, the company reports that they are 70 percent done, having completed flowsheet and detailed engineering design, procured the DMS unit and crushing modules, and are 90 percent done with the erection of non-processing infrastructure which includes laboratory and site accommodation among many other major developments.
After raising A$6.5 million (US$5.05 million) in a share placement, the company has predetermined two stages for the Arcadia Lithium project.
“The Company has assessed advancement of the Arcadia Lithium Project in two stages. This development strategy allows risks to be managed progressively, reduces upfront capital, supports a reduced execution period and will be undertaken with the objective to ultimately reach the nameplate capacity of 2.4Mtpa outlined in the Feasibility Study announced on 19 December 2019,” they highlighted.
“For this reason, the first stage of the Arcadia Project is planned to have a capacity of 1.2Mtpa and will maximise the modularisation of equipment, providing the ability to readily scale to nameplate capacity of 2.4Mtpa. The staged development approach is motivated by reduced time to market, lower initial capital expenditure and creating shareholder value by delivering a lower risk execution plan,” they said explaining further
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