The Galan Lithium Ltd (ASX: GLN) share price spent a day in the green after the company announced a positive economic study.
After touching an intraday high of $1.62 this morning, the Galan share price has since retreated and was swapping hands at $1.52, up 0.66% at the close of trade today.
Galan is a mining company exploring for lithium on the Humbre Muerto basin in Argentina.
Image source: Getty Images
What did Galan Lithium announce today?
In today's release, the company detailed its economic assessment of its Hombre Muerto West Project in Argentina. The company reports its economic predictions in US dollars.
The company has upgraded the net present value of the company by 120% from US$1 billion to US$2.2 billion. This is a whopping $3.1 billion in Australian dollars.
Galan Lithium also predicted an average annual earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$287 million, up 65%.
The study was based on an average lithium price of US$18,594 per tonne.
Looking ahead, Galan Lithium expects to perform more drilling and will soon appoint an independent engineering firm to commence a definitive feasibility level study.
Management comment
Speaking on the announcement, managing director Juan Pablo Vargas de la Vega said:
Galan remains excited about the potential value add for our shareholders once we enter the lithium market with prices expected to be +US$25k/t LCE.
Our projects would now be among the lowest cost of any future producers in the lithium industry, due to their high grade and low impurity setting, green credentials and a low carbon footprint. Galan is excited to be a part of the solution to the global decarbonisation story.
Galan Lithium share price snap shot
The Galan Lithium share price has soared 334% in the past 12 months and is up almost 294% this year to date.
In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 10% in the past year.
The share price over 52 weeks has ranged from as low as 29 cents per share to as high as 1.73 cents apiece.
Based on its current share price, Galan Lithium commands a market capitalisation of roughly $446 million.
