'Outstanding economics': Anson Resources share price rockets 35% on lithium news

Shares in the lithium explorer are hitting record highs today.

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Key points

  • Anson Resources shares have rocketed to a record high on Thursday
  • This follows the release of an update on the company's lithium project in the United States
  • Management highlights that the project has outstanding economics

The Anson Resources Ltd (ASX: ASN) share price has been an incredibly strong performer on Thursday.

At the time of writing, the lithium explorer's shares are up 35% to a record high of 40 cents.

Why is the Anson Resources share price rocketing higher?

Investors have been bidding the Anson Resources share price higher today following the release of an update on the company's Paradox Lithium project in Utah, United States.

According to the release, the definitive feasibility study confirms the project's "outstanding economics" and potential to become a major supplier of high purity battery grade lithium carbonate into the US electric vehicle market.

The company's phase one plan is expected to deliver a robust, low-cost operation with production of up to 13,074 tonnes per annum and revenues of US$5,080 million forecast over 23 years of operations.

This has resulted in a pre-tax net present value of US$1,306 million, with a post-commissioning payback period of two years and pre-tax IRR of 47%.

Management commentary

Anson Resources' Executive Chairman, Bruce Richardson, was pleased with the study. He said:

We are very excited to deliver the Paradox Lithium Project Phase 1 DFS to market. The DFS confirms the technical and financial viability of a major new source of high purity Lithium Carbonate available for the rapidly growing US market.

The Project delivers industry leading ESG credentials based on direct lithium extraction utilising Sunresin technology using lower energy and water consumption, and with spent brine being reinjected back into the Paradox. Significantly, there remains material upside beyond the DFS announced today based on future Mineral Resource upgrades associated with the recently completed drilling campaign at Cane Creek and the future Western Expansion drilling campaign, as well as incorporating Bromine production into stage 2.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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