Proactiveinvestors Australia Alliance Mineral Assets Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Alliance Mineral Assets Ltd RSS feed en Wed, 19 Jun 2019 06:54:25 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Alliance Mineral Assets welcomes Galaxy Resources as a substantial shareholder ]]> https://www.proactiveinvestors.com.au/companies/news/221504/alliance-mineral-assets-welcomes-galaxy-resources-as-a-substantial-shareholder-221504.html Alliance Mineral Assets Ltd (ASX:A40) has had lithium miner Galaxy Resources Ltd (ASX:GXY) become a 12.22% substantial shareholder in the company.

Galaxy recently invested $22.5 million in the company through a $32.5 million placement to become its largest shareholder.

The other $10 million was invested by a generator and motor producing German-based subsidiary of Jiangxi Special Electric Motor Co., Ltd.

The capital raised in the placement will go towards funding process plant upgrades as well as continued exploration across the producing Bald Hill lithium mine’s prospective areas.

READ: Alliance Mineral Assets maintains speculative buy recommendation from Hartleys

Alliance recently achieved quarterly records for lithium production and shipping totals from the Bald Hill Lithium and Tantalum Mine in Western Australia.

It produced 38,291 tonnes of spodumene concentrate grading 6.1% lithium oxide in the March quarter prompting resources-focused broker Hartleys to re-iterate its Spec Buy recommendation.

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Wed, 05 Jun 2019 08:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221504/alliance-mineral-assets-welcomes-galaxy-resources-as-a-substantial-shareholder-221504.html
<![CDATA[News - Alliance Mineral Assets maintains speculative buy recommendation from Hartleys ]]> https://www.proactiveinvestors.com.au/companies/news/221366/alliance-mineral-assets-maintains-speculative-buy-recommendation-from-hartleys-221366.html Alliance Mineral Assets Ltd (ASX:A40) recently achieved quarterly records for lithium production and shipping totals from the Bald Hill Lithium and Tantalum Mine in Western Australia.

Lithium production for the March quarter was 68% higher than the previous quarter with 38,291 wet metric tonnes (wmt) of high-grade spodumene concentrate produced grading 6.1% lithium oxide.

Hartleys has maintained its speculative buy recommendation on Alliance given the strong quarterly production.

Following is an extract from Hartleys’ research report:

GXY investment allows for exploration spend

Alliance Mineral Assets Ltd (A40) announced a placement to Galaxy Resources (GXY) and China based Jiangxi Special Electric Motor Co. Ltd (Jiangte) for a total of A$32.5m, and will leave A40 with a cash position of ~A$48m. GXY will invest A$22.5m and will be the largest shareholder of A40 with ~11.8%. A40 plans to spend the funds on plant upgrades along with exploration and general working capital.

Record MarQ of production from Bald Hill

The company recently reported it produced a record 38.3Kt of spodumene concentrate grading 6.1% Li2O in the March quarter, which is up from 22.6Kt produced in the December quarter. The Company’s cash costs were US$553/t concentrate which reduced substantially from the DecQ costs of US$823/t with grades, throughput and recoveries all improving. A40 processed 387Kt (329.6kt DecQ) of ore at a grade of 0.89% (0.73% DecQ) Li2O with recoveries of 68% (excluding unprocessed fines) improving from 57% in the DecQ. The strip ratio remains high at 15.5x in the MarQ compared to 16x in the DecQ, which is higher than the 11.5X strip ratio guided by the Company for CY19. In CY20 the Company expects the strip ratio to fall to 4.4x. The Company produced 13.3kt at 6.29% Li2O from the 1 st to the 28th of April which leaves it on track to achieve the upper end of guidance (65-80kt concentrate in the 1H CY19). The Company sold 44.3kt of concentrate for US$780/t, with this being the first quarter the Company has sold into its restructured offtake agreement. We expect the received spodumene price to be steady in the JunQ (US$780/t) and to fall slightly in 2HCY19.

Stage 2 plant upgrade until delayed until DecQ CY19

The company’s stage 2 plant upgrade involves introducing a third DMS circuit which will allow the bottom size of feed to be lowered from 1mm to 0.5mm, enabling the plant throughput to increase from the current 220tph to 300tph (2.1mtpa). We note that the Company has delayed the plant upgrade from the first half of the SepQ until the DecQ. We have assumed recoveries being maintained at 68% for the next two quarters, increasing to a steady state of 72.5% from mid CY20, which is at the lower end of Company guidance of between 72-80% recoveries.

Hydroxide MOU with Jiangte

The company recently signed a non-binding MOU with Jiangte to participate in a 50:50 JV to produce battery grade lithium hydroxide. Jiangte is due to commence commissioning of its hydroxide circuit at the Yichun facility in September 2019 and will consume ~20% of Bald Hill’s spodumene production, however once in full production it will consume ~100ktpa and will have a nameplate of ~15ktpa of lithium hydroxide. We currently attribute $55M (4cps) for the lithium hydroxide refinery in our valuation as we assume the JV lasts for 5 years. We await more detail in the formal binding agreement which is expected by 30th June 2019.

Maintain Speculative Buy, price target 29cps

We have a base NPV of 29cps, spot 46cps. We maintain our Speculative Buy recommendation given the strong quarterly production, but we consider it higher risk based on current weakness in spodumene pricing and short mine life dependent on exploration success.

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Mon, 03 Jun 2019 17:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221366/alliance-mineral-assets-maintains-speculative-buy-recommendation-from-hartleys-221366.html
<![CDATA[News - Alliance Mineral Assets to list strategic placement shares on SGX Catalist ]]> https://www.proactiveinvestors.com.au/companies/news/220895/alliance-mineral-assets-to-list-strategic-placement-shares-on-sgx-catalist-220895.html Alliance Mineral Assets Ltd’s (ASX:A40) (SGX:40F) new shares related to its recent placements will be listed on the Catalist Board of the Singapore Exchange (SGX-ST).

The new shares will be issued to Galaxy Resources Ltd (ASX:GXY) and a subsidiary of China-based Jiangxi Special Electric Motor Co (Jiangte).

READ: Alliance Mineral Assets Ltd enters strategic placements with Galaxy and Jiangte to raise $32.5 million

The institutional placement with Galaxy will comprise the issue of 112.5 million shares whereas Jiangte will receive 50 million through a conditional placement.

Both placements were not underwritten and were managed and arrangement by Canaccord Genuity who will be issued 6.125 million shares as placement fee.

The listing and quotation of the 168,625,000 new shares on the Catalist Board is subject to compliance with the SGX-ST’s listing requirements.

 

Alliance had notched up quarterly records for lithium production and shipping totals from the Bald Hill Lithium and Tantalum Mine in Western Australia.

Lithium production for the March 2019 quarter was 68% higher than the previous quarter with 38,291 wet metric tonnes (wmt) of high-grade spodumene concentrate produced grading 6.1% lithium carbonate.

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Fri, 24 May 2019 11:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220895/alliance-mineral-assets-to-list-strategic-placement-shares-on-sgx-catalist-220895.html
<![CDATA[News - Alliance Mineral Assets Ltd enters strategic placements with Galaxy and Jiangte to raise $32.5 million ]]> https://www.proactiveinvestors.com.au/companies/news/220366/alliance-mineral-assets-ltd-enters-strategic-placements-with-galaxy-and-jiangte-to-raise-325-million-220366.html Alliance Mineral Assets Ltd (ASX:A40) has executed separate subscription agreements with Galaxy Resources Ltd (ASX:GXY) and a subsidiary of China-based Jiangxi Special Electric Motor Co (Jiangte) to raise a total of $32.5 million at a price of 20 cents per placement share.

Galaxy contributed $22.5 million in an institutional placement to become Alliance’s largest shareholder while the Jiangte subsidiary Weier Antriebe und Energietechnick GmBH’s $10 million was provided through a conditional placement.

Capital raised in the placement will go towards funding process plant upgrades as well as continued exploration across the Bald Hill mine’s prospective areas.

 

Alliance managing director Mark Calderwood said the company was pleased with existing partner Jiangte’s support and welcomed Galaxy as a strategic investor in Alliance.

Calderwood said: “Our focus over the past 18 months has been on delivering the Bald Hill Mine to production and we have developed a reputation for production and supply of high-quality spodumene concentrates.

“Investment by Jiangte and Galaxy Resources, who are both experienced participants in the lithium sector, is a recognition of, and testament to, our achievements and position in the market.”

READ: Alliance Mineral Assets identifies new exploration target at Bald Hill lithium and tantalum mine

The stage-two plant upgrade involves lowering the dense media separation bottom size from 1 millimetre to 0.5 and increasing hourly plant processing throughput capacity from the current 220 tonnes to 300 tonnes.

Detailed engineering as well as equipment tendering and ordering is ongoing, with commissioning of the fines circuit anticipated to begin during the fourth quarter 2019.

READ: Alliance Mineral Assets lowers lithium and tantalum mine production costs by 33%

Calderwood added: “The placements enable us to rapidly advance both our plant upgrade and our exploration activities with the aim of upgrading our resource base concurrently with proposed increased production rates.

“With the recently announced hydroxide MoU with Jiangte, we also have the opportunity to be involved in the hydroxide production and sales market within the next 12 months.”

Spodumene from Bald Hill

  READ: Alliance Mineral Assets signs MoU with China-based Jiangte to produce and sell lithium hydroxide

The institutional placement with Galaxy will comprise the issue of 112.5 million shares whereas Jiangte will receive 50 million through the conditional placement.

Both placements are not underwritten and were managed and arrangement by Canaccord Genuity (Australia) Limited, paid through the issue of 6.125 million shares at the offer price.

READ: Alliance Mineral Assets sets new lithium production and shipping records at Bald Hill

Galaxy chairman Martin Rowley noted it had become largest individual shareholder in Alliance, saying the company had been a minority holder for some time and welcomed the opportunity to increase its holding.

Rowley said: “Galaxy recognises that the Bald Hill Mine produces high-quality spodumene concentrates and believes that the tenements surrounding the existing Bald Hill Mine operations hold substantial value potential.

“[This] may be unlocked through further targeted exploration and work on resource delineation.

“We look forward to cooperation between the two companies and sharing our Mt Cattlin experience with Alliance.”

 

Alliance recently evidenced a new extensive mineralised pegmatite body at Bald Hill from a drill hole which intersected 20 metres of coarse-grained spodumene-bearing pegmatite from 189 metres.

The intersection is between a hole to the north and several substantial intersections to the south, in an area interpreted as being a single sub-horizontal pegmatite body or group of bodies.

On release of the results, Calderwood noted that only 20% of the 8.8-kilometre prospective southern mineralised area had been drill tested for lithium, the area itself representing only 1.1% of the Bald Hill tenure.  

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Wed, 15 May 2019 20:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220366/alliance-mineral-assets-ltd-enters-strategic-placements-with-galaxy-and-jiangte-to-raise-325-million-220366.html
<![CDATA[News - Alliance Mineral Assets enters trading halt ahead of capital raising ]]> https://www.proactiveinvestors.com.au/companies/news/220171/alliance-mineral-assets-enters-trading-halt-ahead-of-capital-raising-220171.html Alliance Mineral Assets Ltd (ASX:A40) has been granted a trading halt by the ASX pending the release of information regarding a proposed capital raising.

Shares in the company will remain halted until the earlier of either, the release of relevant information, or, the commencement of trading on Thursday 16 May 2019.

READ: Alliance Mineral Assets identifies new exploration target at Bald Hill Lithium and Tantalum Mine

Last week Alliance revealed that drill has provided further evidence of a new extensive mineralised pegmatite body at Bald Hill Lithium and Tantalum Mine in Western Australia.

A drill hole (LRCD0842), which formed part of recent exploration drilling, intersected 20 metres of coarse-grained spodumene-bearing pegmatite from 189 metres.

Kidman bid attracts takeover speculation

With M&A activity starting to heat up and some specific action in the ASX lithium sector with Wesfarmers (ASX:WES) bidding for Kidman Resources Ltd (ASX:KDR), Alliance has been touted as a potential takeover target.

Media speculation earlier this month suggested Alliance’s status as a lithium and tantalum producer makes it a viable takeover option.

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Tue, 14 May 2019 11:35:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220171/alliance-mineral-assets-enters-trading-halt-ahead-of-capital-raising-220171.html
<![CDATA[News - Alliance Mineral Assets identifies new exploration target at Bald Hill Lithium and Tantalum Mine ]]> https://www.proactiveinvestors.com.au/companies/news/220013/alliance-mineral-assets-identifies-new-exploration-target-at-bald-hill-lithium-and-tantalum-mine-220013.html Alliance Minerals Assets Ltd (ASX:A40) drilling has provided further evidence of a new extensive mineralised pegmatite body at Bald Hill Lithium and Tantalum Mine in Western Australia.

A drill hole (LRCD0842), which formed part of recent exploration drilling, has intersected 20 metres of coarse-grained spodumene-bearing pegmatite from 189 metres.

The intersection is between a hole to the north and several substantial intersections to the south and this area has been interpreted as being a single sub-horizontal pegmatite body or group of bodies.

Bald Hill mine long section showing pegmatites west of the current pit design

READ: Alliance Mineral Assets lowers lithium and tantalum mine production costs by 33%

Alliance managing director Mark Calderwood said: “We anticipated that the deepest pegmatite body below and to the west of the current pit design - referred to as Pegmatite 3 West, could be linked to the 21 metres at 1.5% lithium oxide intersection in a water exploration drill hole located some 1.15 kilometres to the north.

“The mineralised pegmatite intersection in LRCD0842 strongly supports this interpretation.

“The exploration target of 17-24 million tonnes for Pegmatite 3 West does not include overlying pegmatites which form part of the current 13.5 million tonnes inferred mineral resource and which are the main focus of infill and extensional drilling.”

 

Calderwood added: “Only 20% of the 8.8-kilometre prospective southern mineralised area (SMA) has been drill tested for lithium to date – the SMA itself represents only 1.1% of the entire Bald Hill tenure.”

Pegmatite 3 West exploration target parameters and assumptions

The western and northern limits of the known extent of Pegmatite 3 West contain 21 wide spaced drill intersections, all of which are mineralised and 17 of which contain substantial mineralisation.

Based on these drill holes, Alliance has defined a 1-kilometre exploration target area and estimates the exploration target ranges from 17 million tonnes to 24 million tonnes grading 1.25% to 1.40% lithium oxide and 150 to 180ppm tantalum pentoxide.

Pegmatite 3 West contains both coarse spodumene and tantalum minerals but is predominantly spodumene-type pegmatite and is adjacent to or below current operations and existing resources and reserves.

Ongoing exploration

Two reverse circulation drill rigs are drilling on the eastern extension of the current resource.

A diamond rig is drilling RCD0842 to test Pegmatite 3 West and potential deeper pegmatites to determine the optimal drill depth north and west of the pit.

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Fri, 10 May 2019 10:23:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220013/alliance-mineral-assets-identifies-new-exploration-target-at-bald-hill-lithium-and-tantalum-mine-220013.html
<![CDATA[News - Alliance Mineral Assets lowers lithium and tantalum mine production costs by 33% ]]> https://www.proactiveinvestors.com.au/companies/news/219426/alliance-mineral-assets-lowers-lithium-and-tantalum-mine-production-costs-by-33-219426.html Alliance Mineral Assets Ltd (ASX:A40) reduced production costs by 33% during the March quarter at its Bald Hill Lithium and Tantalum Mine in Western Australia.

The cost of producing a wet metric tonne (wmt) of lithium concentrate was $772 and this was lower than the previous quarter while the average selling price for the quarter was $1,083 per dmt, based on 6% Li2O.

Grades for the quarter averaged 0.89% lithium, up from 0.73% on the December 2018 quarter, while recovery averaged 68% - another increase from 57%.

READ: Alliance Mineral Assets sets new lithium production and shipping records at Bald Hill

These impressive results were achieved on the back of record quarterly production of 38,291 wmt of lithium concentrate, which was up 68% on the December quarter.

The improvements resulted from increased throughput, recovery and grade.

Alliance Mineral Assets held $15.6 million in cash at the end of the March quarter.

The company's managing director Mark Calderwood said: “We expected this – this is nameplate production, our costs have been driven down about a 33% decrease in cost per tonne as the production tonnages increase,” he said.

Alliance has also entered into an MoU with China-based Jiangte (SHE:002176) to produce and sell battery-grade lithium hydroxide.

Calderwood added: “This is an excellent opportunity for Alliance to participate in the downstream without any capital expenditure – it also enables us to get into production quite quickly of hydroxide, probably this year.

READ: Alliance Minerals Assets signs MOU China-based Jiangte to produce and sell lithum hydroxide

“It gives us an increase of margin per tonne of spodumene without the need of building our own conversion plan – so it's quite a unique opportunity.”

The stage II plant upgrade involves lowering the Dense Media Separation (DMS) bottom size from 1 millimetre to 0.5 millimetres and increasing hourly plant processing throughput capacity from the current 220 tonnes to 300 tonnes.

Detailed engineering as well as equipment tendering and ordering has continued throughout the quarter and it is expected that commissioning of the fines circuit will begin during the fourth quarter of 2019, however components of the improvement to the existing circuits may begin sooner.

Production guidance of 65,000 to 80,000 tonnes of lithium concentrate for the six months between January and July 2019 remains on track.

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Wed, 01 May 2019 13:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219426/alliance-mineral-assets-lowers-lithium-and-tantalum-mine-production-costs-by-33-219426.html
<![CDATA[Media files - Alliance Mineral Assets posts record quarterly results, inks MoU for hydroxide production ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13164/alliance-mineral-assets-posts-record-quarterly-results-inks-mou-for-hydroxide-production-13164.html Tue, 30 Apr 2019 19:41:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13164/alliance-mineral-assets-posts-record-quarterly-results-inks-mou-for-hydroxide-production-13164.html <![CDATA[News - Alliance Mineral Assets signs MOU with China-based Jiangte to produce and sell lithium hydroxide ]]> https://www.proactiveinvestors.com.au/companies/news/219224/alliance-mineral-assets-signs-mou-with-china-based-jiangte-to-produce-and-sell-lithium-hydroxide-219224.html Alliance Mineral Assets Ltd (ASX:A40) (SGX:40F) has entered into a non-binding memorandum of understanding (MOU) with China-based Jiangte (SHE:002176) to produce and sell battery-grade lithium hydroxide.

Jiangte is engaged in the production of lithium battery cathode material, electric automobile drive motors and control systems, and electric vehicles.

The 50:50 lithium hydroxide JV provides a unique opportunity for Alliance to participate in the downstream lithium products market within the next 6 to 12 months, without incurring capital costs and exposure to the risk associated with the construction of a conversion facility.

JV highlights

• Alliance will continue to own and operate the Bald Hill Mine and will supply the spodumene to the joint venture with the cost of production and transport recovered from sales of lithium hydroxide;

• Jiangte will continue to own and operate its lithium hydroxide and lithium carbonate converter in Yichun, Jiangxi Province, China following its completion;

• Alliance is not required to fund any of the capital cost of the converter;

• Spodumene contributed by Alliance will be processed at the converter to produce lithium hydroxide which will be sold by the joint venture to third-parties; and

• The joint venture will work to develop long-term downstream partnerships for battery-grade lithium hydroxide and/or lithium carbonate.

Aerial view of Jiangte’s Yinli New Energy conversion facility

Alliance managing director Mark Calderwood said: “The Hydroxide JV provides for a rapid, low-risk, low-cost entry into downstream production and sales of battery-grade lithium products.

“We see market demand for lithium hydroxide increasing. Aside from traditional industrial uses, a number of rechargeable battery manufacturers are now using lithium hydroxide in their products and this joint venture will enable Alliance to participate in this market.

“Over the next two months, Alliance and Jiangte will work towards completion of joint venture documentation and simultaneously continue talks with potential long-term downstream customers which may provide additional longer-term certainty around demand and pricing.

Ongoing construction for hydroxide circuit in the foreground with existing leach circuit in the background at Jiangte’s Yinli New Energy facility

“This downstream joint venture opportunity will enable Alliance to further benefit from its high-quality Bald Hill lithium product which provides for high-recovery and reduced conversion costs at one of the world’s largest and modern processing facilities with lower levels of emissions.

“We are proud of the relationship we have developed with Jiangte and the joint venture is a significant step forward in what is anticipated to be a long-term integrated relationship in the supply of battery cathode materials.”

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Mon, 29 Apr 2019 16:02:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219224/alliance-mineral-assets-signs-mou-with-china-based-jiangte-to-produce-and-sell-lithium-hydroxide-219224.html
<![CDATA[News - Alliance Mineral Assets Ltd sets new lithium production and shipping records at Bald Hill ]]> https://www.proactiveinvestors.com.au/companies/news/218095/alliance-mineral-assets-ltd-sets-new-lithium-production-and-shipping-records-at-bald-hill-218095.html Alliance Mineral Assets Ltd (ASX:A40) has notched up quarterly records for lithium production and shipping totals from the Bald Hill Lithium and Tantalum Mine in Western Australia.

Lithium production for the March quarter was 68% higher than the previous quarter with 38,291 wet metric tonnes (wmt) of high-grade spodumene concentrate produced grading 6.1% lithium carbonate.

The company also achieved a monthly production record in March when 15,012 wmt was produced with a recovery of 70% of gross feed and 79% of net feed, after removal of unprocessed fines.

READ: Alliance Mineral Assets shares surge on achieving record lithium production in January

Managing director Mark Calderwood said: “It has been an excellent quarter as the mine continues to ramp-up concentrate production through increased throughput, improved grades and recovery. 

“We are well on track to meet our guidance for the first half of 2019 of 65,000 to 80,000 wmt of lithium concentrate produced.”

During the March quarter, the company shipped a total of 44,305 dmt of concentrate, representing an almost 100% increase on the December 2018 quarter.

The shipments comprised regular sales to Jiangxi Bao Jiang Lithium Industrial Limited and a trial parcel to a new customer.

Tantalum production

Tantalum pentoxide production of 34,380 pounds in the March quarter was in line with the December 2018 quarter production of 32,700 pounds.

Three shipments of contained tantalum pentoxide totalling 38,935 pounds were made during the March quarter.

READ: Alliance Mineral Assets boosts board with financial expertise

Bald Hill produces a premium coarse concentrate with very low levels of iron, potassium, mica, moisture and less than 2% ultra-fines.

Calderwood said: “Bald Hill’s coarse spodumene concentrate is being recognised by the industry as a premium product due to its coarse size, low fines and very low level of iron and other deleterious elements.

“The company expects to select its preferred customers for the remaining offtake over the next few months.”

Spodumene from the Bald Hill project.

READ: Alliance Mineral Assets simplifies financial position by consolidating debt facilities

March 14, 2019, marked the first anniversary of lithium production at the mine, which is 50 kilometres southeast of Kambalda in the Eastern Goldfields region.

The mine is around 75 kilometres southeast of the Mt Marion lithium operation and about 350 kilometres by road from the Port of Esperance.

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Mon, 08 Apr 2019 10:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218095/alliance-mineral-assets-ltd-sets-new-lithium-production-and-shipping-records-at-bald-hill-218095.html
<![CDATA[Media files - Alliance Mineral Assets sets new quarterly lithium production record at Bald Hill mine ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12902/alliance-mineral-assets-sets-new-quarterly-lithium-production-record-at-bald-hill-mine-12902.html Sun, 07 Apr 2019 23:14:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/12902/alliance-mineral-assets-sets-new-quarterly-lithium-production-record-at-bald-hill-mine-12902.html <![CDATA[News - Alliance Mineral Assets boosts board with financial expertise ]]> https://www.proactiveinvestors.com.au/companies/news/216048/alliance-mineral-assets-boosts-board-with-financial-expertise-216048.html Alliance Mineral Assets Ltd (ASX:A40) has bolstered its executive team through the appointment of experienced finance professional Ron Chamberlain as chief financial officer.

A highly credentialed chartered accountant, the company’s new CFO has more than 28 years’ experience predominantly in the resources industry in Australia and internationally.

He has extensive expertise with project development and production accounting, financing, financial risk management and tax structuring.

READ: Alliance Mineral Assets shares surge on achieving record lithium production in January

Managing director Mark Calderwood said: “On behalf of the board, I am delighted to welcome Ron as chief financial officer of the company.

“The board is pleased to have secured a finance professional of Mr Chamberlain’s calibre and his skill-set and experience will be a valuable addition to the Alliance executive team.

“[This comes] as we continue to build our production profile at the Bald Hill Mine, consolidate our balance sheet and finalise additional long-term offtake arrangements for the balance of our lithium and tantalum production.”

Chamberlain has held senior roles with ASX 100 and ASX 200 mineral producers including Iluka Resources Limited (ASX:ILU) and Paladin Energy Ltd (ASX:PDN).

His most recent role was chief financial officer of ASX-listed Vimy Resources Ltd (ASX:VMY).

He replaces Shaun Menezes, who resigned following completion of the merger with Tawana Resources NL, and Craig Hasson, Tawana’s CFO.

Hasson has been fulfilling the interim CFO duties for Alliance and has elected to focus on a commercial role within the merged group.

READ: Alliance Mineral Assets simplifies financial position by consolidating debt facilities

Alliance this week announced that it has consolidated its debt facilities into a simplified structure resulting in a lower average interest rate.

This was achieved by subsidiary Lithco No2 Pty Ltd completing the drawdown of the remaining $20 million of a $40 million secured funding package from a consortium of lenders led by Tribeca Investment Partners Pty Ltd.

Single debt facility

The funds will be used to repay the lithium producer’s existing $13 million AMAL Loan Facility, which incurred a higher interest rate.

Repayment of this facility simplifies the company’s debt and security structure and means that the Alliance group has a single debt facility with one consortium and with a single first ranking security.

Funds remaining after repayment of the AMAL facility will be used for advancing the company’s recovery and throughput optimisation project at the Bald Hill project and for general working capital.

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Fri, 08 Mar 2019 10:14:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216048/alliance-mineral-assets-boosts-board-with-financial-expertise-216048.html
<![CDATA[News - Alliance Mineral Assets simplifies financial position by consolidating debt facilities ]]> https://www.proactiveinvestors.com.au/companies/news/215656/alliance-mineral-assets-simplifies-financial-position-by-consolidating-debt-facilities-215656.html Alliance Mineral Assets Ltd (ASX:A40) (SGX:40F) has consolidated its debt facilities into a simplified structure resulting in a lower average interest rate.

Wholly-owned subsidiary Lithco No2 Pty Ltd has completed the drawdown of the remaining $20 million of a $40 million secured funding package from a consortium of lenders led by Tribeca Investment Partners Pty Ltd.

These funds will be used to repay the WA lithium producer’s existing $13 million AMAL Loan Facility, which incurred a higher interest rate.

 

Managing director Mark Calderwood said: “We are pleased to have worked closely with Tribeca to consolidate our debt facilities at a lower average interest rate. 

“Production at Bald Hill continues to be strong and I reiterate our guidance of 65,000 to 80,000 tonnes of lithium concentrate for the half year to June 30, 2019, and I expect the current quarter production will be a record quarter for the mine.”

Debt structure simplified

Repayment of the AMAL Loan Facility simplifies the company’s debt and security structure.

This means that the Alliance group now has a single debt facility with one consortium and with a single first ranking security.

Drawdown of the Lithco Facility and repayment of the AMAL Loan Facility results in a net increase of $7 million in the group’s secured debt facilities to a total of $40 million.

Funds remaining after repayment of the AMAL facility will be used for advancing the company’s recovery and throughput optimisation project at the Bald Hill project and for general working capital.

READ: Alliance Mineral Assets shares surge on achieving record lithium production in January

Alliance recorded record monthly production of 13,160 tonnes of lithium concentrate in January from Bald Hill Lithium and Tantalum Mine with lithium concentrate grading an estimated 6.15% lithium oxide.

total lithium concentrate production in January 2019 was 28% higher than December 2018 production.

The 131,400 tonnes of ore were processed at an average throughput of 237 tonnes per hour with 87.6% net utilisation, which equates to 30% above nameplate and 23% more throughput than December 2018.

Alliance reported a head grade of 0.93% lithium oxide and gross recovery of 64.2%.

READ: Alliance Mineral Assets gains new substantial shareholder

The company shipped a total of 23,232 wet metric tonnes of lithium concentrate on February 2 and 3 with revenue from these shipments expected to be about $26 million, subject to final assay.

An additional 30,000 tonnes of lithium concentrate is expected to be shipped or ready for shipment during the current quarter.

A total of 20 tonnes of high-grade tantalum grading about 30% tantalum pentoxide was shipped in January 2019 with an additional shipment of 20 tonnes expected to depart on February 8.

Production guidance for the half year to June 30, 2019, remains at 65,000 to 80,000 tonnes of lithium concentrate.

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Mon, 04 Mar 2019 09:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215656/alliance-mineral-assets-simplifies-financial-position-by-consolidating-debt-facilities-215656.html
<![CDATA[News - Alliance Mineral Assets shares surge on achieving record lithium production in January ]]> https://www.proactiveinvestors.com.au/companies/news/214143/alliance-mineral-assets-shares-surge-on-achieving-record-lithium-production-in-january-214143.html Alliance Mineral Assets Ltd (ASX:A40) (SGX:40F) has achieved record monthly production of 13,160 tonnes of lithium concentrate in January 2019 from its Bald Hill Lithium and Tantalum Mine in Western Australia.

The lithium concentrate graded an estimated 6.15% lithium oxide.

Notably, total lithium concentrate production in January 2019 was 28% higher than December 2018 production.

 

The 131,400 tonnes of ore were processed at an average throughput of 237 tonnes per hour with 87.6% net utilisation, which equates to 30% above nameplate and 23% more throughput than December 2018.

Alliance reported a head grade of 0.93% lithium oxide and gross recovery of 64.2%.

The company has shipped a total of 23,232 wet metric tonnes (about 22,928 dry metric tonnes) of lithium concentrate on the 2nd and 3rd of February.

Revenue from these shipments is expected to be about $26 million, subject to final assay.

READ: Alliance Mineral Assets completes Tawana Resources ‘merger of equals’

An additional 30,000 tonnes of lithium concentrate is expected to be shipped or ready for shipment during the March 2019 quarter.

It is worth noting that a total of 20 tonnes of high-grade tantalum grading about 30% tantalum pentoxide was shipped in January 2019.

An additional shipment of 20 tonnes of high-grade tantalum grading about 30% tantalum pentoxide is expected to depart on February 8, 2019.

The company’s production guidance for the half year to June 30, 2019 remains at 65,000 to 80,000 tonnes of lithium concentrate.

READ: Alliance Mineral Assets gains new substantial shareholder

Alliance managing director Mark Calderwood said: “Lithium concentrate production for January 2019 was up 28% on December 2018 total production and is an excellent start to the current quarter.

“The quantity of lithium concentrate shipped over the last week is also a record for Alliance.

“A number of requests for lithium concentrate are currently being reviewed and we expect to ship, or have ready for shipment an additional 30,000 tonnes of premium quality lithium concentrate during the quarter.

“Interest in long term off take for Bald Hill’s high-grade lithium concentrate remains strong.”

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Thu, 07 Feb 2019 17:19:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214143/alliance-mineral-assets-shares-surge-on-achieving-record-lithium-production-in-january-214143.html
<![CDATA[News - Alliance Mineral Assets gains new substantial shareholder ]]> https://www.proactiveinvestors.com.au/companies/news/213015/alliance-mineral-assets-gains-new-substantial-shareholder-213015.html Alliance Mineral Assets Ltd (ASX:A40) (SGX:40F) has revealed that Regal Fund Management has become a new substantial shareholder in the company after acquiring about 67 million ordinary shares with a voting power of 5.14%.

The specialist alternative investment manager is one of Australia’s leading investment managers servicing a wide range of institutional investors and high net worth individuals.

READ: Alliance Mineral Assets completes Tawana Resources ‘merger of equals’

Alliance recently listed on the ASX through a buy-up of Tawana Resources NL, with the new entity focused on the Bald Hill lithium and tantalum mine in Western Australia.

Tawana and Alliance were previously in a 50:50 joint venture to progress the Bald Hill mine.

The parties started producing lithium concentrate at the mine in March 2018 and shipped their first batch of the concentrate to offtake partner Burwill Commodity Limited in China in May 2018.

 

Alliance managing director Mark Calderwood recently said that a plant upgrade at Bald Hill is the next major milestone for the company, with the sign-ups of offtake partners being a second milestone.

He said: “Next big milestones are to upgrade plant and we expect the up-sized plant to be operating in the third quarter of this year.

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Tue, 22 Jan 2019 14:03:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213015/alliance-mineral-assets-gains-new-substantial-shareholder-213015.html
<![CDATA[News - Alliance Mineral Assets completes Tawana Resources ‘merger of equals’ ]]> https://www.proactiveinvestors.com.au/companies/news/212721/alliance-mineral-assets-completes-tawana-resources-merger-of-equals-212721.html Alliance Mineral Assets Ltd (SGX:40F) has joined the Australian market through a buy-up of Tawana Resources NL (ASX:TAW) (FRA:TJR) (JSE:TAW), with the new entity focused on the Bald Hill lithium and tantalum mine in Western Australia.

Tawana and Alliance were previously in a 50:50 joint venture to progress the Bald Hill mine.

The parties started producing lithium concentrate at the mine in March 2018 and shipped their first batch of the concentrate to offtake partner Burwill Commodity Limited in China in May 2018.

READ: Tawana Resources gains on $40 million funds backing Alliance Mineral Assets merger, Bald Hill mine pick-up

Alliance’s backdoor listing onto the Australian market through its Tawana investment was achieved with a $40 million funding package from a consortium led by Tribeca Investment Partners.

Alliance managing director Mark Calderwood called Tawana and Alliance’s marry-up a “merger of equals”, during a video interview with Proactive Investors in September 2018.

Calderwood spoke to Proactive’s Stocktube video channel this week, with the interview published on the day the merged company was relisted on Australian Securities Exchange.

The MD said on Tuesday: “Alliance effectively took Tawana over, but it was a 50:50 merger.

“That’s all been bedded down now, and we’re now operating as one entity, which has been a great relief from a compliance point of view.”

Tribeca’s Global Natural Resources Credit Fund portfolio manager Haydn Smith said last year the fund saw Bald Hill as a strategic investment.

Smith said: “The project has the lowest capital intensity in the sector and produces a coarse product anomalously low in magnesium, iron, mica and other deleterious materials, making it highly sought after by lithium converters.

“We believe that Bald Hill spodumene will ultimately command its own pricing mechanism, much like high-grade iron ore or high-energy thermal coal.”

June 2018 production levels

The Bald Hill mine partners produced 19,218 wet metric tonnes (wmt), or about 18,800 dry metric tonnes (dmt), of spodumene concentrate and 367 wmt of tantalum pre-concentrate at the project in its first half-year as a producer.

Offtake party Burwill took 9,012 wmt (about 8,859 dmt) of spodumene concentrate, as $5.297 million in spodumene concentrate sales was recognised for the sales period of March 12, 2018, to June 30, 2018.

The average shipped concentrate grade for the June 2018 half-year was 6.14% lithium oxide with only 0.55% iron and low potassium, sodium and mica.

 

Next steps

Calderwood noted a plant upgrade at Bald Hill was the next major milestone for the company, with the sign-ups of offtake partners being a second milestone.

He said: “Next big milestones are to upgrade plant and we expect the up-sized plant to be operating in the third quarter of this year.

“Then … news on who our second off-taker will be, or second or third (offtaker) — it’s a matter of keeping a close eye on the changes in this next couple of months.”

Door opens to additional offtake agreements

Calderwood noted the new entity had been negotiating offtake-style agreements for several weeks, holding talks with Hong Kong-based Burwill.

The full exclusivity of Alliance’s arrangement with Burwill will end.

Calderwood said: “There’s been a few positives come out of that for us, and the key one is that we will limit their tonnages.

“They will receive about half the production from Bald Hill, and the other half, we are free to sell to another offtaker, and we’re into dense discussions on those with potential other offtakers.

“This gives us a bit more certainty about where products (are) going and demand going forward.”

FLASHBACK: Tawana Resources ships first batch of Bald Hill lithium concentrate to China

Burwill Holdings agreed to transfer its Bald Hill purchasing rights to chemicals maker Jiangxi Bao Jiang Lithium Industrial Ltd.

Existing concentrate buyer Burwill has a 50% stake in the chemicals venture with Jiangte Special Electric Motor Co.

Jiangte has ambitions to become a significant downstream processing market player in China and is increasing its lithium concentrate conversion capacity.

 

Alliance sets production targets for 2019-20

Alliance’s leader confirmed production targets for the next two years in the merged entity’s latest Stocktube video.

Calderwood said: “We’re looking at a 65,000 to 80,000-tonne production rate for this (June 2019 half) six months, and then that’ll ramp up again.

“We’re looking at about 180,000 tonnes this year, going to about 260,000 tonnes next year, but I’d like to think they are minimum tonnages that we’re looking for, for those two years.”

The corporate leader flagged external factors that affect its pricing mechanism for those tonnes.

“Offtake is now somehow related to the market price for lithium carbonate and lithium hydroxide, so those prices will step up and step down during the year.

“Instead of having a fixed contract price, we’ll have a floating price arrangement.”

Lithium carbonate and lithium hydroxides are used in the lithium-ion batteries that go in electric cars.

The spot price out of China last Friday for battery-grade 99.5% lithium carbonate was 75,000-83,000 yuan (US$11,087.63-$12,270.31) a tonne.

The spot price for battery grade 56.5% lithium hydroxide was 99,000-109,000 yuan (US$14,635.66-$16,114.01).

One US dollar is changing hands for 6.76 Chinese yuan.

READ: Lithium outlook uncertain amid growing demand, oversupply and potential disruptive technologies

The company’s production guidance does not necessarily reflect concerns about future spodumene prices.

Calderwood said: “There’s been a lot of talk in the sector about an oversupply of spodumene in the market (but) we’re actually not seeing that.

“We’re seeing that the good-quality, high-grade premium spodumene is in relatively high demand still.”

The battery minerals executive predicted a big year for electric vehicles this year.

Calderwood said: “We think the underlying market is actually stronger than what the market perceives.

“I think this year, the first six months will be pretty soft, in terms of carbonate and hydroxides, but at some point, you’ll see a pick-up in there, as with the continuing demand for electric vehicles and the production of electric vehicles.

“Last year was quite a big year for electric vehicles, and I think this year will be another big year, in terms of stats.”

Lithium powers electric vehicles

Western Australia is the world’s leading producer of lithium, with 44% of world supply in 2017 coming from the state’s seven operating lithium mines.

Forty-one per cent of the world’s 214,000-tonne lithium carbonate equivalent (LCE) went to batteries in 2017.

The electric vehicle industry is the largest user of batteries made from lithium.

McKinsey&Company wrote in June 2018 lithium demand would triple in the eight years to 2025, increasing by 455,000 tonnes of lithium carbonate equivalent (LCE) to 669,000 tonnes LCE.

The company noted contract pricing varied and was sometimes even 60% of the spot price in China.

Argonaut Limited metals, mining & energy research director Matthew Keane tipped at the Technology and Low Emission Minerals Conference 2018 that medium-term lithium prices were likely to move closer to US$10,000 a tonne of lithium carbonate before returning to the US$20,000 a tonne mark.

Lithium concentrate spot prices for China have remained steady since the November 2018 conference and were at the US$11,087.63-$12,270.31 mark last Friday.

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Wed, 16 Jan 2019 16:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212721/alliance-mineral-assets-completes-tawana-resources-merger-of-equals-212721.html
<![CDATA[Media files - Alliance Mineral Assets MD updates on Bald Hill production and offtake ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11845/alliance-mineral-assets-md-updates-on-bald-hill-production-and-offtake-11845.html Tue, 15 Jan 2019 15:52:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11845/alliance-mineral-assets-md-updates-on-bald-hill-production-and-offtake-11845.html