Preliminary Economic Assessment
The Preliminary Economic Assessment (PEA) was prepared by the independent engineering firm ARA WorleyParsons. The results of the PEA highlight that Lithium Americas’ principal property has the potential to become one of the lowest cost lithium operations in the world. The PEA provides for a 40,000 tonne per annum (TPA) lithium carbonate (LCE) production facility built in two phases, with construction of the first 20,000 TPA phase expected to begin in 2012, and construction of the second phase expected to begin in 2016. Potash and borax by-products were not included in the PEA, and could potentially add further value to the project.
The PEA base-case highlights are provided in the table below. The full PEA can be obtained by clicking on the following link.
Preliminary Assessment and Economic Evaluation of the Cauchari-Olaroz Lithium Project, Jujuy Province, Argentina (PDF)
| Pre-Tax Net Present Value (NPV) @ 8% Discount Rate | US$983 million |
| Pre-Tax Internal Rate of Return (IRR) | 30% |
| Cash Operating Costs (per tonne of LCE) | US$1,434 |
| Initial Capital (for 20,000 TPA of LCE) | US$217 million |
| Total Capital (for 40,000 TPA of LCE) | US$399 million |
| Stage 1 Revenue Generation Commences (20,000 TPA of LCE) | Year 2014 |
| Stage 2 Revenue Generation Commences (40,000 TPA of LCE) | Year 2018 |