Investor Perception
Galan Lithium’s funding enchantment is pushed by its Hombre Muerto West challenge, a prime 20 international lithium useful resource that includes high-grade, low-cost lithium brine focus, on monitor for near-term manufacturing in Argentina’s famend mining area.
Overview
Argentina isn’t any stranger to lithium mining. The South American nation is one in every of three encompassed within the prolific Lithium Triangle, a area that holds greater than 60 % of the world’s lithium sources. Argentina has the world’s second best endowment of lithium reserves (17 Mt), concentrating lithium operations within the provinces of Jujuy, Salta and Catamarca.
Demand for lithium is forecasted to develop from roughly 1 Mt LCE in 2024 to round 3Mt in 2030, a compound annual progress fee of round 20 %. Argentina has dedicated to $7 billion value of funding for lithium manufacturing with robust progress projected for exports at $1.1 billion in 2023.
Galan Lithium (ASX:GLN,FSX:9CH) is an Australia-based worldwide mining growth firm targeted on its high-quality lithium brine tasks in Argentina – Hombre Muerto West and Candelas. The corporate additionally holds a extremely potential lithium challenge in Australia – Greenbushes South.
The corporate’s flagship Hombre Muerto West (HMW) challenge hosts a few of Argentina’s highest grade and lowest impurity ranges with a listing of 8.6 million tons (Mt) contained LCE @ 859 mg/L lithium, with 4.7 Mt contained LCE @ 866 mg/L Li within the measured class. The 100-percent-owned property is strategically positioned close to Rio Tinto’s lately acquired Arcadium Lithium challenge, highlighting its place inside a extremely sought-after lithium area
Galan has signed a industrial settlement with the Catamarca Authorities supporting the grant of permits to allow the commercialisation of lithium chloride focus from HMW to be offered regionally or exported internationally.
In August 2024, Galan entered right into a memorandum of understanding with Chengdu Chemphys Chemical Trade Co. for an offtake prepayment settlement for the HMW challenge. As soon as a definitive settlement is executed, Chemphys will buy a complete of 23,000 tonnes lithium carbonate equal, as a lithium chloride product, over the primary 5 years of manufacturing from Part 1 of the HMW challenge. Chemphys may also present Galan with an offtake prepayment facility to facilitate the continued growth of Part 1 of the HMW challenge.
Catamarca Governor Raúl Jalil and Galan Lithium Managing Director Juan Pablo Vargas de la Vega in Catamarca.
In September 2024, Galan efficiently accomplished a capital elevating of AU$20 million, together with a fully-subscribed Entitlement Supply of $13.3m, reflecting robust shareholder assist and confidence within the Firm’s strategic route and the event of its HMW challenge
Along with Hombre Muerto West, Galan Lithium’s portfolio consists of a number of strategically positioned tasks that complement its flagship asset:
- Candelas Venture (Argentina): Situated inside the Hombre Muerto Basin, this underexplored challenge boasts a maiden useful resource estimate of 685kt LCE and is integrated into Galan’s Part 4 growth plans focusing on 60ktpa LCE manufacturing by 2030.
- Greenbushes South Venture (Australia): Located simply 3 kilometres south of the world-class Greenbushes lithium mine, this challenge gives robust exploration potential for lithium-bearing pegmatites. Galan is progressing land entry agreements and holds an exploration license by to 2029.
- James Bay & Ontario Initiatives (Canada): In 2023, Galan acquired property blocks in Quebec and Ontario positioned in globally acknowledged lithium provinces, offering additional exploration upside in key jurisdictions.
Backed by a extremely skilled administration group, Galan is well-positioned to advance these complementary tasks whereas sustaining its major concentrate on creating HMW right into a world-class lithium manufacturing hub.
Firm Highlights
- Galan Lithium is an ASX-listed firm creating lithium brine tasks inside South America’s lithium triangle on the Hombre Muerto salar in Argentina.
- The corporate has two high-quality tasks within the works: its flagship Hombre Muerto West (HMW) and the Candelas lithium challenge, each in Argentina. The 2 tasks mixed carry the corporate’s present complete mineral useful resource estimate to eight.6 million tons lithium carbonate equal @ 859 mg/L lithium.
- HMW leverages advantageous positioning close to Arcadium Lithium’s challenge, which is topic to an acquisition by Rio Tinto, highlighting the strategic significance of this high-grade lithium area
- Galan’s lithium Assets are ranked among the many prime 20 on this planet
- HMW sits within the lowest quartile of the worldwide lithium value curve, leveraging brine extraction benefits for value effectivity
- Excessive-grade, low-impurity brine focus validated by sturdy offtake curiosity and market alignment
- Galan’s phased strategy and robust stakeholder collaboration mitigate dangers and guarantee regular progress towards first manufacturing in 2025
- The HMW Part 1 (5.4 ktpa LCE) execution plan is progressing effectively with the supply of the primary evaporation-ready pond anticipated in 2024, and manufacturing in H2 2025.
- The HMW Part 2 definitive feasibility research (DFS) delivers compelling economics with 21 kilo-tons every year (ktpa) lithium carbonate equal (LCE) operation at HMW, focusing on a high-quality, 6 % concentrated lithium chloride product (equal to 12.9 % lithium oxide or 31.9 % LCE) in 2026.
- Galan has signed a industrial settlement with the Catamarca Authorities enabling the commercialisation of lithium chloride focus from HMW to be offered regionally or exported internationally.
- Galan is the primary mining firm to use for the Argentine ‘RIGI’, an incentive regime for giant scale investments
- Galan is transitioning into a significant lithium challenge developer and stays dedicated to conducting fast-tracked lithium growth in its prolific tasks with a goal manufacturing of 60 ktpa LCE from HMW and Candelas by 2030.
Key Initiatives
Hombre Muerto West Venture
The 100-percent-owned Hombre Muerto West challenge is a big land property that sits on the west coast of the Hombre Muerto salar in Argentina, the second-best salar on this planet for the manufacturing of lithium from brines. The property additionally leverages strategic positioning close to Arcadium Lithium, lately acquired by Rio Tinto.
Galan has elevated HMW’s mineral useful resource to eight.6 Mt contained LCE @ 859 mg/L lithium (beforehand 7.3 Mt LCE @852 mg/L lithium), one of many highest grade useful resource estimates declared in Argentina. HMW’s measured useful resource is now at 4.7 Mt contained LCE @ 866mg/L lithium. Inclusion of the Catalina tenure provides ~1.3 Mt LCE to the HMW useful resource.
The pilot plant at HMW has validated the manufacturing of lithium chlorine focus, including reagents to get rid of impurities, and producing a focus at 6 % lithium. The plant contains pre-concentration ponds, a lime plant, a filter press and focus ponds.
Pilot Plant at HMW
Development for Part I has already commenced for five.4 ktpa LCE manufacturing at HMW, and goals to ship lithium chloride manufacturing in H2 2025. The fourth long-term pumping check (PBRS-03-23) outcomes at HMW file an excellent lithium imply grade of 981 mg/L – the best reported grade from a manufacturing effectively within the Hombre Muerto Salar.
In October 2024, Galan introduced 45 % challenge completion with pond building at 76 % and challenge execution is advancing as deliberate.
A definitive feasibility research (DFS) for section 2 reveals a 20.85 ktpa LCE operation at HMW, focusing on high-quality, 6 % concentrated lithium chloride product (equal to 12.9 % lithium oxide or 31.9 % LCE) in 2026. The DFS additionally indicated section 2 will ship a post-tax NPV (8 %) of US$2 billion, IRR of 43 % and free money stream of US$236 million per 12 months. Part 2 gives an distinctive basis for important financial upside in phases 3 and 4, focusing on 60 ktpa LCE manufacturing by 2030.
Galan has entered right into a memorandum of understanding with Chengdu Chemphys Chemical Trade Co. for a prepayment offtake settlement. As soon as a definitive settlement is executed, Chemphys will buy a complete of 23,000 tonnes of lithium carbonate equal, as a lithium chloride product, over the primary 5 years of manufacturing from Part 1 of the HMW challenge.
Chemphys may also present Galan with a US$40 million offtake prepayment facility to facilitate the continued growth of the HMW challenge.
Galan now has one hundred pc full possession of the Catalina tenement that borders the Catamarca and Salta Provinces in Argentina. The newly secured Catalina tenure has a powerful potential to considerably add to the prevailing HMW useful resource. The tenure additionally covers the Catalina, Rana de Sal II, Rana de Sal III, Pucara del Salar, Deseo I and Deceo II tenements.
Greenbushes South Lithium Venture
The 100-percent-owned Greenbushes South lithium challenge is positioned close to Perth, Western Australia, and is three kilometers south of the world-class Greenbushes lithium mine, managed by Talison Lithium. The Greenbushes South tenements could be discovered alongside the Donnybrook-Bridgetown Shear Zone geologic construction, which hosts the lithium-bearing pegmatites on the Greenbushes Lithium Mine.
Greenbushes South covers practically 315 sq. kilometers, and hosts elevated pathfinder components with well-defined anomalies adjoining to the property.
Administration Workforce
Richard Homsany – Non-executive Chairman
Richard Homsany is an skilled company lawyer and has intensive board and operational expertise within the sources and vitality sectors. He’s the manager chairman of ASX-listed uranium exploration and growth firm Toro Power Restricted, government vice-president of Australia of TSX-listed uranium exploration firm Mega Uranium and the principal of Cardinals Legal professionals and Consultants, a boutique company and vitality and sources regulation agency. He’s additionally the chairman of the Well being Insurance coverage Fund of Australia (HIF) and listed Redstone Assets and Central Iron Ore and is a non-executive director of Brookside Power Homsany’s previous profession consists of time working on the Minera Alumbrera Copper and Gold mine positioned within the Catamarca Province, northwest Argentina.
Juan Pablo (‘JP’) Vargas de la Vega – Founder and Managing Director
Juan Pablo Vargas de la Vega is a Chilean/Australian mineral trade skilled with 20 years of broad expertise in ASX mining firms, stockbroking and personal fairness corporations. JP based Galan in late 2017. He has been a specialist lithium analyst in Australia, has additionally operated a personal copper enterprise in Chile and labored for BHP, Rio Tinto and Codelco.
Daniel Jimenez – Non-executive Director
Daniel Jimenez is a civil and industrial engineer and has labored for a world chief within the lithium trade, Sociedad Química y Minera de Chile, for over 28 years. He was the vice-president of gross sales of lithium, iodine and industrial chemical substances the place he formulated the industrial technique and advertising and marketing of SQM’s industrial merchandise and was answerable for over US$900 million value of estimated gross sales in 2018.
Terry Gardiner – Non-executive Director
Terry Gardiner has 25 years’ expertise in capital markets, stockbroking and derivatives buying and selling. Previous to that, he had a few years of buying and selling in equities and derivatives for his household accounts. He’s presently a director of boutique stockbroking agency Barclay Wells, a non-executive director of Cazaly Assets, and non-executive chairman of Charger Metals NL. He additionally holds non-executive positions with different ASX-listed entities.
María Claudia Pohl Ibáñez – Non-executive Director
María Claudia Pohl Ibáñez is an industrial civil industrial engineer with intensive expertise within the lithium manufacturing trade. Till lately, she labored for world chief within the lithium trade Sociedad Química y Minera de Chile (NYSE:SQM, Santiago Inventory Trade:SQM-A, SQM-B) for 23 years, based mostly in Santiago, Chile. Throughout her time at SQM, she held quite a few senior management roles together with overseeing lithium planning and research. Ibáñez brings important lithium challenge analysis and operational expertise while becoming a member of the board at a essential juncture in Galan’s journey to changing into a big South American lithium producer. Since leaving SQM in late 2021, Ibáñez has been managing associate and basic supervisor of Chile-based Advert-Infinitum, a course of engineering consultancy, with a selected concentrate on lithium brine tasks below research and growth, and the related challenge evaluations.
Ross Dinsdale – Chief Monetary Officer
Ross Dinsdale has 18 years of intensive expertise throughout capital markets, fairness analysis, funding banking and government roles within the pure sources sector. He has held positions with Goldman Sachs, Azure Capital and extra lately he acted as CFO for Mallee Assets. He’s a CFA constitution holder, has a Bachelor of Commerce and holds a Graduate Diploma in Utilized Finance.
