Deterra Royalties Limited (ASX:DRR) Updates on Thacker Pass Project
Project Overview
Deterra Royalties Limited (ASX:DRR) reports a significant update regarding the Thacker Pass Lithium Project operationally managed by Lithium Americas Corporation. Deterra holds a 4.8% gross revenue royalty over the project, which could reduce to 1.05% following a partial royalty buyback estimated at US$13.2 million.
Key Highlights
Thacker Pass now boasts the largest measured lithium reserve and resource globally, with a Non-JORC Proven and Probable mineral reserve of 14.3 million tonnes lithium carbonate equivalent (LCE) and a Non-JORC Measured and Indicated mineral resource of 44.5 million tonnes LCE.
Significant expansion plans are slated, targeting a production capacity of 160,000 tonnes-per-year of battery-quality lithium carbonate, effectively doubling previous estimates. The project’s life expectancy has increased to 85 years, with competitive C1 operating costs of $6,238 per tonne.
Future Outlook
Lithium Americas anticipates announcing a final investment decision for Phase 1 in early 2025. The timeline includes production of first concrete at the Project site in Q2 2025 and commissioning of the process plant in Q2 2026, aiming for first production by Q4 2027.
Executive Comments
Julian Andrews, Managing Director and Chief Executive Officer of Deterra, expressed enthusiasm about the update on Thacker Pass. “We are delighted with today’s update regarding Thacker Pass, which highlights the unique benefits of the royalty model. For no additional capital outlay by Deterra, our economic interest has increased substantially as Thacker Pass has grown to have the largest global lithium resource and reserve,” he stated.
Andrews further noted the recent U.S. Department of Energy loan completion and a $625 million investment by General Motors, reinforcing the project’s strategic importance in catering to rising domestic U.S. requirements for lithium.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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