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The 2.4 million tonne per annum processing operation could produce an average of 212,000 tonnes per annum of 6% spodumene (plus petalite and tantalum), and pay back its capital in 2.5 years.
A pre-tax net present value of $511 million has been estimated, and an internal rate of return of 44%
Cash operating costs of $285/t of concentrate are expected, while current reserves total 26.9Mt grading 1.3% lithium oxide.
Average annual earnings are put at $106 million (on an EBITDA basis).
Prospect said it assumed a long term lithium carbonate price of $12,000 per tonne.
The ASX-listed company started the current quarter with just under A$13 million cash.
Shares in Prospect were down nearly 4% to 2.5c in afternoon trade, capitalising the company at $50 million.
