| In an update today (12 Jan), Alliance Mineral Assets (AMA) and JV partner Tawana Resources (TAW) affirmed that their first lithium concentrate production is on track for 1Q2018 and first shipment, April 2018. At their Bald Hill project in Western Australia, personnel levels on site are peaking at over 200. Tawana’s MD, Mark Calderwood, said: “The transformation on site since our last update on 28 November has been amazing, with construction pushing through the Christmas period. We are now entering the home straight with commissioning expected to commence within two months." Watch this 27 Dec 2017 drone footage of the work at the mine -> |
| The Bald Hill Project, which spans 774 sqkm, or similar to the size of Singapore, remains "significantly underexplored and significant drilling is planned for 2018." Drilling will determine the extent of lithium and tantalum resources in other parts of the Project. Any significant increase in resources can be expected to have a positive impact on investors' estimation of the value of the Project and, hence, the share prices of AMA and TAW. |
In the production of lithium concentrate, the Bald Hill project will yield tantalum as a valuable by-product. In other words, from one rock, the mine will have two minerals for sale.
"Offtake negotiations are progressing" for the tantalum, said the JV statement.
In a 30 Dec 2017 article, The West Australian said: "Two Chinese offtake partners will take all of the mine’s lithium production and Tawana is expected to announce soon an offtake deal for its tantalum concentrate, the price of which has been on the march recently with the 30 per cent product trading around $US90/lb."
|
AMA stock price |
41 c |
|
52-week range |
9 – 44 c |
|
PE (ttm) |
-- |
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Market cap |
S$215 m |
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Shares outstanding |
538 m |
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Dividend |
-- |
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1-year return |
336% |
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Source: Bloomberg |
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For the lithium concentrate, offtake agreements were earlier secured for delivery to Burwill Holdings over a five-year term with pricing for 2018 and 2019 of US$880/t (FOB Esperance) for 6% lithium oxide.
The prepayments from the offtake agreement are being used towards the capital costs of the project, which is fully funded to first shipment.
For the press release, click here.