A scoping study for the 32.7 million tonnes at 1% Li2O resource at Manna, 100km east of the major mining hub at Kalgoorlie in the Eastern Goldfields, has been described by managing director Ron Mitchell as "compelling", with a brisk 15-month payback of the expected $437 million capital costs.

 

Based on a 2Mtpa plant recovering 221,000tpa of 5.5% spodumene concentrate, mine life is put at 10 years, assuming no additional tonnes are added to Manna. 

 

Exploration to add resources is already being planned as Manna remains open in all directions.

 

Global's economics are based on a cash operating cost of US$688/t for a 5.5% spodumene concentrate, and a long-term spodumene concentrate price estimated to be $2500/t.

 

All-in sustaining costs are expected to be $885/t.

 

Manna has a pre-tax net present value of A$2.8 billion and an internal rate of return of 103%.

 

Mitchell said the project was low risk, located in a proven mining jurisdiction with plenty of lithium experience.

 

The open pit operation will use a flowsheet based on learnings from other lithium producers, so it should avoid its peers' early pitfalls.

 

The scoping study noted that even a 20% rise in capex to $522 million would only have a minor impact on NPV and IRR, extending the payback period slightly to 18 months.

 

A final investment decision is targeted for 2024.

 

Global purchased 80% of Manna's lithium rights from Breaker Resources in 2021, and snapped up the other 20% for $60 million last year.

 

Global recently raised some $121 million at $2.25 per share through a share purchase plan and placement and has about $70 million cash remaining.

 

Global listed in mid-2021 and has seen a tenfold boost in its share price since, to almost $3 earlier this year.

 

The stock was steady in early trade to $2.08, capitalising it at $535 million.

 

The shares were 60c a year ago.