Interview with Simon Clarke, CEO & Director of American Lithium Corp

Our previous interview: https://www.cruxinvestor.com/posts/american-lithium-tsx-vli-ruling-clears-path-for-lithium-uranium-assets-4462

Recording date: 9th January 2024

American Lithium Corp provided investors an update on recent progress for both its Falchani lithium project and Macusani uranium project in Peru. As electric vehicle and battery markets boom globally, American Lithium aims to establish itself as a premier supplier of the critical raw materials needed to feed this growth.

The company continues working to capitalize on strong lithium market conditions by advancing Falchani towards a 2025 targeted production start. Meanwhile, American Lithium believes Macusani has reached sufficient scale to support a standalone uranium developer company and plans are underway to spin out the asset.

Falchani Economics Solidify Position as Global Leader

An updated Preliminary Economic Assessment (PEA) for the Falchani lithium deposit shows substantially improved economics compared to the previous study. The NPV has more than tripled to $5.1 billion on an after-tax basis, assuming production of lithium carbonate. The company remains on track to deliver a Pre-Feasibility Study (PFS) by end of Q2 2024 as the next step towards potential development.

Importantly, the improved economics are driven by optimization of the processing flow sheet and operating parameters rather than just inflated resource estimates. Initial capex is estimated at $681 million for the 23,000 tpa Phase 1 lithium carbonate project. Critically, operating costs remain exceptionally low versus lithium peers at just over $5,000 per tonne.

The company continues permitting discussions with the Peruvian government, targeting a 2025 final investment decision for potential project development and mine construction. Additional drilling is likely to further expand resources after recent strong results.

Uranium Spinout Unlocks Hidden Value

At the Macusani uranium project, also located in Peru, American Lithium is planning a spin out into a standalone uranium-focused entity. Despite strong prices, the market currently assigns little direct value to Macusani.

Post-spinout, CEO Simon Clarke sees potential for the new company to achieve a $150-200 million market capitalization based on the quality of the advanced project. This would finally provide the project visibility and potential to re-rate towards valuations commensurate with uranium developers.

The company intends to maintain operational leadership during the transition phase to preserve vital local community relationships before transferring full control. Permitting, feasibility study progression, and additional exploration drilling will be areas of focus initially.

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View American Lithium's company profile: https://www.cruxinvestor.com/companies/american-lithium

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