TNR Gold NSR Royalty Holding On Mariana Lithium With Ganfeng: Lithium Hits All-Time High Of $78,100/T In China

Lithium prices hit a new all-time high of over $78,100/T LCE in China and Ganfeng Lithium is moving Mariana Lithium Project fast forward with their US$600 million investment plan for the approved "Phase 1" with 20,000 T of the annual production capacity of Lithium Chloride.

Chart by Nicholas Winton

With this kind of numbers, some analysts in our industry may start calculating potential future NSR Royalty cash flows for TNR Gold from Mariana Lithium Project closer to US$15 million per year rather than US$5 million, even after Ganfeng will execute its buyback right for 1% of NSR.

"TNR retains a 2.0% NSR Royalty on the entire Mariana Lithium Project in Argentina with Ganfeng Lithium, (TNR holds a 0.2% NSR on behalf of a shareholder). Ganfeng’s subsidiary, Litio Minera Argentina, has a right to repurchase 1.0% of the NSR Royalty on the Mariana Project, of which 0.9% relates to the Company’s NSR Royalty interest. The Company would receive $900,000 on the completion of the repurchase. The project is currently being advanced by Ganfeng Lithium International Co. Ltd.

 

Mariana Lithium Project** measured and indicated resource: 4,410,000 T of LCE and 49,700,000 T of potash with the additional inferred resource: 786,000 T of LCE and 9,260,000 T of potash.

(Updated Mariana Lithium Project measured and indicated resource: 6,854,000 T of LCE with the additional inferred resource: 1,267,000 T of LCE – Company news release, July 14, 2021)"   

 

We are building The Green Energy Metals Royalty and Gold Company. Insiders continue to invest in TNR Gold. On the links below you can find more information about TNR Gold, our assets and learn more about the lithium market. As usual, make your own research, stay safe and prosper. Join rEVolution!

TNR Gold Investor Presentation - Building The Green Energy Metals Royalty and Gold Company from Kirill Klip

Please visit the TNR Gold website for all updated presentations.

Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions. 

Do Your Own Research.

"All this flood of money that is seeking the best investment returns during the Energy Transition and Electrification of our Energy and Transportation sectors will be creating a tsunami of shock waves across Lithium supply lines that are not ready and still being built to feed Tesla Energy rEVolution."

 

"Due to the technical complexity, only the strongest Lithium companies will be able to develop new projects and achieve a significant production increase of Battery Grade Lithium. The whole industry produced only 369,000 T LCE of Lithium in 2020 and now we have to jump first to over 1 million T LCE by 2025. Ganfeng's Chairman is talking about 3 million T LCE annual demand by 2030 and Canaccord Genuity estimated that only Tesla will consume 2.7 million T LCE annually by 2030."

 

TNR Gold NSR Royalty Holding: Ganfeng Will Install A 150 MW Solar Park At Mariana Lithium Project In Salta, Argentina 

TNR Gold NSR Royalty Holding On Mariana Lithium: Ganfeng's Litio Minera Argentina Reports About "Participatory Environmental Monitoring At Mariana Project"

TNR Gold Mariana Lithium NSR Royalty Holding: "Ganfeng Is About To Start Work On Plants Planned For The Salar Del Llullaillaco And The Gemes Industrial Park. It Will Invest Close To US$600 Million".

TNR Gold Royalty Holding Update: ILC Reports Ganfeng Subsidiary Litio Minera Argentina Assumes All Rights And Obligations In Respect Of Mariana Lithium.

Kirill Klip, Executive Chairman of the Company commented, “We are pleased with the great news regarding Ganfeng Lithium, our NSR Royalty holding and advance of the Mariana Lithium Project to construction. I am also very pleased to see that this deal between ILC and Ganfeng Lithium included confirmation that Ganfeng’s subsidiary, Litio Minera Argentina, assumes all rights and obligations that ILC had in respect of the Mariana Lithium Project, including in respect to TNR Gold NSR Royalty Holding. Ganfeng Lithium has now consolidated 100% of the Mariana Lithium Project and advanced it to the construction stage. 

This news comes after a 55% increase in the measured and indicated resource estimate from the previously announced 2020 increase of more than 250% in measured and indicated resources at the Mariana Lithium Project. We extend our congratulations to Ganfeng and salute the people of Argentina on the celebration of ‘Pachamama’ – the ritual that thanks the earth for all that we receive from it. This ritual was performed at Mariana Lithium in September after successful approval of the Environmental Impact Report by the Salta regional government in Argentina and approvals for the construction of a plant with a designed annualized capacity of 20,000 tonnes per annum of lithium chloride.

We are very pleased to see that this new plan represents a 100% increase of the previously planned lithium annual production rate presented in the Mariana Project preliminary economic assessment (“PEA”), announced in our news release of January 28, 2019. It was the first PEA on the project and provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow, which has now been very significantly increased. We welcome the news from the Salta regional government, following its discussions with Ganfeng, that the likely project expenditure to bring the Mariana Project to full production is approximately US$600 million.

TNR does not have to contribute any capital for the development of the Mariana Project. The 2.0% Mariana NSR Royalty on the Mariana Project with Ganfeng Lithium is a very important part of TNR Gold’s portfolio, (TNR holds a 0.2% NSR on behalf of a shareholder). The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”