Anson (ASX:ASN) shares are trading over 30% strong; here's why

Highlights: 

• Anson shared a significant update from its Paradox Lithium Project in Utah, USA. 
• Backed by this update, Anson’s share price surged by 30.508% at 12:12 PM AEST on ASX, today (8 September 2022).

Australian mining firm Anson Resources Limited (ASX:ASN) shares skyrocketed on ASX on Thursday afternoon, followed by the company releasing updates from its Paradox Lithium Project. 

Anson’s share price surged by 30.508% to AU$0.385 per share at 12:12 PM AEST on ASX today (8 September). 

In last 12 months, Anson’s share price significantly grew by almost 341% on ASX. Furthermore, on a YTD basis, Anson’s share price appreciated by 183.57% on ASX (as of 12:15 PM AEST today). 

Update on Anson’s Paradox Lithium Project: 

The Australian mineral resource explorer Anson Resources announced a significant update from its lithium project in Utah, USA. The company mentioned that the definitive feasibility study at Paradox has confirmed its potential to become a supplier of high purity battery grade Lithium Carbonate in the US Electric Vehicle industry.

The phase 1 of the feasibility study has delivered strong, cost-effective operations with a revenue worth US$5,080 million forecast over 23 years of operations. The expected annual production of Lithium Carbonate each year is estimated at 13,074 tonnes. 

Furthermore, a compelling pre-tax NPV of US$1,306 million was reported, with the project generating strong margins, along with a post-commissioning payback period of two years and a pre-tax IRR of 47%. 

As announced by Anson on 22 August 2022, the Phase 1 economics is solely based on existing indicated Mineral Resources of 239,000 tonnes. However, the company is yet to update the DFS Economics based on future mineral resources upgrades. 

Anson has also laid down an estimation of its capital expenditure of US$495 million as the lithium carbonate plant is supposed to use the Sunresin patented, proven Direct Lithium Extraction (DLE) technology. The company believes that Sunresin DLE technology requires lower energy and water consumption. Anson is expected to initiate the production of high-purity Lithium Carbonate in 2025.

Anson will soon conduct the phase 2 development at Paradox, which is supposed to comprise of a further substantial increase in lithium production capacity, along with Bromine production capacity.

The company is planning to fund the capital expenditure of Phase 2 from the free cash flow generated from Phase 1 operations.