LETTER TO OUR SHAREHOLDERS
Dear Shareholders,November 13, 2024
On behalf of Century Lithium, I thank you for your support and am pleased to provide an update on our progress and vision for the Company.
This past year was transformative for Century Lithium. In 2024, we realized milestones that few companies our size in the lithium sector have achieved. The most significant steps we’ve made to date are completing the Feasibility Study on Angel Island and producing battery-grade lithium carbonate at our Nevada Pilot Plant. These achievements make our flagship lithium project, Angel Island, one of the most advanced lithium projects in the United States. Our end-to-end process will produce battery-grade lithium carbonate for the growing electric vehicle and battery storage market.
The results of the Feasibility Study, released in April this year, were an impressive net present value, at an 8% discount rate of US$3.1 billion and an internal rate of return of 17.2%. We believe the project economics can be further improved. We are working diligently on optimization at the Pilot Plant and in engineering, targeting specific areas where significant reduction of the estimated capital costs can be made.
With respect to costs, a major component of Angel Island is the chlor-alkali plant. The chlor-alkali plant brings technical and environmental advantages by producing the key reagents for our process onsite. It also creates a substantial economic benefit through the production of surplus sodium hydroxide. As reported in the Feasibility Study, the market for sodium hydroxide in the western United States is currently met largely by foreign imports. Angel Island offers a domestic supply for much of this demand. As projected by the Feasibility Study, surplus sales of sodium hydroxide are a significant offset to cash operating costs. These sales result in a net cash cost for lithium carbonate under $3,000/tonne and would place Angel Island at the low end of the cost curve for lithium producers and developing projects.
Pilot Plant Highlights
The team at our Pilot Plant continues to make strides, successfully making battery-grade lithium carbonate using Century Lithium’s patent-pending chloride leaching process. This achievement strengthens our position as a future end-to-end provider of lithium, demonstrating our ability to produce battery-grade lithium carbonate from claystone. This capability places Century Lithium at the forefront of sustainable and innovative lithium production, aligning well with Nevada’s “Lithium Loop” initiative to support the United States’ clean energy transition.
As part of our current efforts in optimization, we have successfully tested various alternative reagents and equipment at bench and mini-pilot scales. As a result, we are now upgrading the Pilot Plant to reflect these changes, and to evaluate their potential to lower the estimated project costs while continuing to demonstrate the efficiency and technological benefits of our overall process.
Environmental and Permitting Progress
We are pleased to report significant headway in our permitting activities. Most of the required baseline studies are completed and we are working with federal regulators to complete the last steps before the NEPA process. We are currently editing an internal draft Plan of Operations while awaiting key inputs, detailed engineering and the completion of all baseline work. We are also preparing key state permits for water pollution control and air quality. The permitting work underway will ensure that our future operations at Angel Island will align with both regulatory requirements and Century Lithium’s environmental and social stewardship goals.
Strategic Partnerships and Funding for Angel Island
In parallel with the technical advancements at Angel Island, we are actively seeking strategic partnerships with potential end-users and market participants interested in securing a domestic supply of battery-grade lithium carbonate. The surplus of sodium hydroxide produced in our process also presents an additional revenue stream, making Angel Island highly attractive because of its competitive estimated cash cost. We are further exploring government funding opportunities available through the U.S. Department of Energy and U.S. Department of Defense to increase Angel Island’s financing options.
As we head into 2025, we are continuing our efforts to minimize spending and maintain our treasury while remaining focused on the priorities discussed above.
Looking Forward
While 2024 presented challenges across the lithium market, we are encouraged by the resilience and value offered by Angel Island and the technological advancements we have achieved in our process. The focus on clean energy sources and battery materials continues to drive demand for secure, sustainable lithium supplies, and Century Lithium is well positioned to be a leading U.S.-based source for this critical commodity.
We are grateful for your continued support and belief in Century Lithium’s mission. Together, we are building a Company that aims to play an integral role in the clean energy transition. We look forward to sharing our progress as we continue to make strides in the development of Angel Island, deliver value to you, our shareholders, and contribute to a sustainable energy future.
Sincerely,
Bill Willoughby
President & Chief Executive Officer
Century Lithium Corp.