Green light for Sibanye-Stillwater’s Keliber lithium hydroxide project
14h00 (CAT) / 12h00 BST / 07h00 (EST) / 06h00 (MDT)
Programme
| Strategic delivery in a chosen ecosystem | Neal Froneman |
| Overview of the Keliber project | Mika Seitovirta |
| Permitting, production and capital | Hannu Hautala |
| ESG and biodiversity | Hannu Hautala |
| Lithium market outlook | Neal Froneman |
| Conclusion | Neal Froneman |
Sibanye-Stillwater approves implementation of the Keliber project and begins the construction of the Keliber lithium hydroxide refinery
Highlights:
- Keliber lithium hydroxide project approved by Sibanye-Stillwater board
- Progressing our European battery metals strategy and delivering superior value for all stakeholders
- A high quality, integrated lithium project, positioned to supply LiOH into the growing European Battery ecosystem
- Keliber project economics robust at conservative forecast lithium prices
- Significantly leveraged to higher prices
- Construction of the Kokkola lithium hydroxide refinery commencing and viable on a standalone basis
- Positive outlook for Lithium market
- Significant scalability of both primary supply and refining capacity
Strategically important for Finland and the European battery sector
Strategic delivery
- Progress in building our portfolio of green metals and energy solutions
- Increased Keliber shareholding to 85% -strategic value accretive, majority shareholding achieved
- Increased exposure to the high-quality scalable Keliber lithium hydroxide project; in a favourable location, at opportune time in cycle
- Enhancing established presence in European regional ecosystem -Keliber, Sandouville and Verkor Giga factory investment
World-class project in superior location
- Strategically located, fully integrated lithium hydroxide project, close to critical regional end user ecosystems
- Delivering 15,000tpa integrated LiOH into the European battery Ecosystem for at least 16 years
- 17m tonnes of scalable lithium oxide mineral resources in a highly prospective region
- Finland rated the best mining destination in Europe and Top 10 in the world
Robust economics
- NPV of €887m (8% discount rate) and IRR of 20% at LiOH long term price of US$26,034/t*
- NPV of €1.72bn (8% discount rate) and IRR of 27% at LiOH long term price of US$37,000/t#
Supportive environment and outlook
- Consensus for elevated lithium price forextended period due to looming deficits increasing
- Projected BEV demand driven by legislation –lithium is essential to reduce global CO2emissions
- Constraints on new supply to meet implied demand
Positive benefits for all stakeholders
- Substantial investment into key industries identified by Finnish state as of strategic importance
- First and greenest integrated battery metals project in Europe -competitively low CO2emissions a differentiator
- Important benefits for Finland fiscus and regional stakeholders –local employment and procurement for the region
- Biodiversity impact studies conducted and considered in the development of the project
- * February 2022 DFS amended during October 2022 for inflation impact on costs and capex, assuming long-term price LiOH of US$26,034/tonne and exchange rate of €/US$1.1, NPV at 8% discount
- #Long-term LiOH price of US$37,000/tonne (SFA Oxford real forecast LT price) applied to amended October 2022 DFS. NPV at 8% discount
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