Atlantic Lithium CEO on Ewoyaa mining lease talks - ICYMI

Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) CEO Keith Muller talked with Proactive about the company's engagement with the Ghanaian government regarding the mining lease for the Ewoyaa Lithium Project. Muller explained that Ewoyaa is one of the very few hard rock spodumene projects globally that is "essentially shovel-ready," emphasising that the mining lease ratification is the final step before securing financing and offtake arrangements.

He outlined how the lease was initially signed under different market conditions in October 2023, with spodumene prices then falling from highs above $6,000 per tonne to around $800 per tonne currently. Muller stated, "We must recognise that there is a significant change in what has been to what is today," highlighting the proactive engagement with the government to secure a mutually beneficial outcome amid a challenging commodity market.

Muller stressed the importance of the Ewoyaa project's low operating costs in ensuring resilience, even at suppressed pricing levels. He noted that Ewoyaa could bring over 900 direct and up to 2,500 indirect jobs to Ghana's Central Region, making it a catalyst for regional economic development.

In closing, Muller reassured investors of the project's sustainability, saying, "There’s no doubt in my mind that this mine will be built."

Proactive: Keith, very good to speak with you. We've seen your announcement that Atlantic Lithium is engaging the Ghanaian government over the terms of the mining lease for your Ewoyaa Lithium Project. Could you provide us with some background on the project and the importance of the mining lease for the project?

Keith Muller: Sure, certainly, Stephen. Ewoyaa is one of the very few hard rock spodumene mines globally that is essentially shovel-ready. We've obtained a majority of our permits over the last 24 months. The last piece of the puzzle is the ratification of our mining lease by the Ghanaian parliament. That's essentially the last step for us so that we can commence and complete our financing and offtake arrangements.

The mining lease was signed in October 2023 under a much different spodumene market than what we are seeing currently. Prices were coming down from an all-time high above $6,000 a tonne, and today we're sitting at about $800 a tonne. That's been trading like that for the last 12 months. It's really been challenging for the commodity market. From our perspective, we must recognise that there is a significant change in what has been to what is today.

Proactive: So why are the discussions with the government taking place, Keith? What are you hoping to achieve?

Keith Muller: Look, it's a proactive engagement with the government. What we're trying to do is to find a solution that's mutually beneficial for all of us and for all stakeholders. It's important that, under the current commodity market pricing, we can attract international investment. We're seeing a lot of other spodumene producers globally struggling under the current market.

One thing that's in favour of Ewoyaa is the very low operating costs that we have, but that does not make us immune to the suppressed spodumene pricing we are experiencing at the moment. We are really trying to find a solution that's best for the Central Region and best for the people of Ghana.

Proactive: How does the government and Ghana stand to benefit from these discussions?

Keith Muller: I think it's important to recognise that in the Central Region, there is not a lot of mining activity. In fact, Ewoyaa will be the largest mine that region has ever seen. There are a lot of job opportunities available — over 900 direct employees and perhaps as much as 2,500 indirect employees. We're already the largest taxpayer in that region.

Activity in that region is really what is needed, and that's what the local community is telling us. It's not only beneficial for the Central Region but could also support other spodumene projects that might come online in Ghana. We would like to see a signal that other international projects can grow and work together with us in producing spodumene out of Ghana.

Proactive: Keith, as it has with many of your peers, the lithium price decline has impacted the company's share price. What message do you have for both existing shareholders and also new potential investors?

Keith Muller: I think when it comes to spodumene mining, one of the most important factors to look at is the unit operating cost. A lot of global players are scaling back production or delaying the advancement of projects. The low operating costs that we see at Ewoyaa are absolutely what's going to help us through in the future.

There’s no doubt in my mind that this mine will be built. Especially with the offtake discussions we're currently having, we're looking for a project that will be sustainable long-term, and not only profitable when prices fluctuate between $1,000 to $2,000 a tonne, but maintainable at long-term prices of around $1,200 to $1,400 a tonne.

Proactive: Keith, I hope you'll keep us updated on progress with those discussions. Thank you very much for speaking with us today.