Atlantic Lithium is a mining company focused on the development and production of lithium resources in West Africa.
Neil, with a background in economics and accounting, what led you to the industry of mining?
I started in the mining industry quite a long time ago, in the late 90s. With my background at PWC, an opportunity arose to work for a client, Antofagasta. Antofagasta is a historic company, famous for its railroads in the Atacama Desert and expanding into mining. When I joined, it was still relatively small, with a market capitalization of 137 million sterling, which has since grown significantly.
During my time there, we built a couple of mines, including the Los Pelambres copper mine, which was a game changer for the company. It has become an enormous generator of value and is still operating today. This experience significantly shaped my career in the mining industry.
Atlantic Lithium is currently operating in two jurisdictions - in Ghana and in Cote d'Ivoire. You describe the project in Ghana, Ewoyaa, as your flagship project. What is special about it?
We began working on Ewoyaa as early as 2016, with our discovery hole announced in August 2018. The project quickly began delivering promising results due to the straightforward mining conditions and low contaminants in the ore body. This makes the separation of minerals efficient, which is crucial for processing techniques like gravity separation.
The project is significant because it will be Ghana's first lithium mine. Ghana, with its long mining history, provides a favorable environment. The country has existing mining infrastructure and a highly qualified local workforce. Our project has progressed rapidly, with the maiden Mineral Resource Estimate announced in 2020 and production expected by 2026, which is notably faster than the industry average.
What allowed you to speed up the process?
Several factors contributed to our accelerated timeline. The main ore body, which is two kilometers long, is relatively easy to explore. The project is well-situated in Ghana, with good infrastructure and a coastal location. We plan to build a plant just 800 meters from a paved road, which is only 110 kilometers from a port with existing mineral handling facilities.
Ghana's long-term mining jurisdiction has provided us with highly experienced local staff, making our operation entirely Ghana-managed. To address the lack of local experience in lithium mining, we have set up a center of excellence in Western Australia. This, combined with continuous work through COVID and relentless project advancement, has kept us on track to break ground later this year and start production in 2026.
Atlantic Lithium partners with Piedmont Lithium on the Ewoyaa Lithium Project. What is the significance of that relationship? Relatedly, do you plan to produce lithium yourself as of 2026 or exit?
We always plan to take a project to production ourselves to continue de-risking it. We have built a full team of over 150 staff, ready to take the project forward. If someone offers to buy us at the right price for investors, that is great, but our primary goal is self-production. We aim to be the last significant independent African producer; a status that carries certain kudos.
As for Piedmont, it has been a valuable partner, providing the bulk of the funding for the project and earning a 42% stake over time. They offer both financial support and technical expertise. Our relationship is very productive, with Piedmont planning to build a chemical conversion plant in Tennessee, where our product from Ewoyaa will serve as the feedstock. This collaboration is crucial for our project's success.
Could you elaborate on your relationship with the authorities in Ghana? How easy has working in the country been so far?
Working in Ghana requires engagement at three levels: local communities, the regional government, and the national government. From the beginning, our exploration team did things right, earning the support of local communities who are eager for the mine's development. We employ locals and have community programs, including a community development fund, which will invest 1% of revenues into local initiatives focused on socio-economic development once production starts.
Regionally, we will be the first significant mine, and the local authorities are keen to benefit from the economic opportunities. Nationally, Ghana's government has a 13% free carried interest in the project, showing their substantial stake and support. Additionally, the Sovereign Wealth Fund of Ghana has invested in Atlantic Lithium and plans to invest further in the project, aiming for a 6% interest. These partnerships are vital for developing a mine, and Ghana's long mining history makes it a welcoming place for mineral investment.
What about your other project, in Côte d'Ivoire. What are the timelines for going into production there?
The Côte d'Ivoire licences are currently at the very beginning stages, comparable to where we were in Ghana pre-2020. We have focused most of our resources on Ghana due to its near-term production potential and the value it offers our shareholders. We are, however, very eager to progress our work in Côte d'Ivoire to explore its mining potential further.
Are you worried about the volatile lithium prices?
Despite the volatile lithium market, we have attracted significant investor attention due to our low CapEx and OpEx mine. Current lithium prices for our concentrate are around $1,100, while our all-in sustaining costs are under $700, allowing us to remain profitable even at these prices. Over the past decade, lithium has experienced double-digit growth annually, driven by the demand for EVs, leading to significant market volatility.
Historically, lithium has been both the best and worst performing mineral over the years due to rapid supply and demand changes. Prices peaked around $6,000 and have since dropped to $1,100, but they have also fallen as low as $400. With new mines coming online, we expect the market to stabilize, reducing volatility. By 2026, we anticipate being one of the few operations ready to meet the continuing double-digit growth in lithium demand.
How easy is it for a company like Atlantic Lithium to attract fresh capital today?
Investment cycles tend to follow price trends, with high prices attracting more investment and low prices causing hesitation. Fortunately, our low-CapEx project benefits from excellent infrastructure in Ghana, reducing our costs significantly compared to more remote locations. This infrastructure advantage, combined with local resources and labor force, has made it easier to attract investment.
We have secured significant financing through the Sovereign Wealth Fund of Ghana, Piedmont Lithium, and potential offtake agreements, which include prepayments and equity investments.
Where do you picture Atlantic Lithium as a lithium mining company by 2026?
By 2026, we aim to be among the top dozen producers of spodumene lithium globally, possibly even breaking into the top 10. This is a significant target for us, reflecting our ambitions and the progress we have made so far.
