Prospect Resources

Primary ticker: ASX:PSC
Stage of development: Development
Primary minerals: Lithium
Project to promote: Arcadia Lithium Project

Live financials

Prospect Resources Limited (ASX:PSC) is an ASX listed, Africa-focused, Lithium and Battery Minerals company based in Perth with operations in Zimbabwe, and exploration activities in Zimbabwe and the DRC. Prospect’s flagship project is the Arcadia Lithium Project located on the outskirts of Harare in Zimbabwe. The Arcadia Lithium Project represents a globally significant hard rock lithium resource and is being rapidly developed by Prospect’s experienced team, focusing on near term production of petalite and spodumene concentrates.

Management Profile

Sam Hosack – Managing Director

Mr Hosack is a third generation Zimbabwean, residing in Western Australia. He holds a Bachelors Engineering Degree (Hons) from Essex University in UK, MBA from Ashcroft Business School (UK) and respective professional registrations. He has hands on experience in the delivery of large scale mining, power and port projects to market, as well as their operations. For the past 12 years he has been employed by First Quantum Minerals Ltd, primarily in their Projects team, where most recently he has project managed the building of a port (coal offloading and copper loading). 


What is your rationale for attending 121 Mining Investment?

Prospect Resources is currently transitioning from a mining exploration company into a mining development & producing company. With this transition, the investment risk profile decreases and investors are able to see through to profitability.

The Company is looking for investors who see value in companies as their risk decreases and share prices re-rate accordingly over time. The investors would ideally experience in African mining and project financing.

The Company will be releasing its Definitive Feasibility Study on its Arcadia Lithium Project within the coming week and will then be looking for debt and equity investors to fund the capital expenditure to develop the mine to take the company into production on the path to profitability.

What recent news would you like to highlight to investors attending?

DFS – release imminent

Prospect Resources increased ownership in Arcadia mine from 70% to 87% – 3/10/2018

Prospect Resources received a US$10m export finance facility from Zimbabwe Government – 11/9/2018

Appointment of Sam Hosack as Managing Director – 14/05/2018

Significant value upgrade following updated PFS on Arcadia Lithium Project – 19/03/2018

Commissioning of Lithium Carbonate Pilot Plant – 27th February 2018

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Release of Definitive Feasibility Study

Conduct equity and debt raising to fund development of the Arcadia Lithium Project

6 Months:

Commence construction of the plant facilities

Explore further feasibility studies for expansion, supply chain opportunities and partnerships within the region

Sign additional off-take agreements to develop customer channels and relationships

12 Months:

Progressing the development of the Arcadia Lithium Project

Continue to sign additional off-take agreements

Explore opportunities for growth within the Company’s strategic plan

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

The key risks for the company are:
– Project Funding = Prospect has strong project economics to support funders return metrics, supported by a large scale resource and scalability processing facilities
– Project Capital Expenditure = Prospect has a management team that is experienced in mining project development and execution in Africa and other continents.
– Commodity Prices (Lithium prices) = The company has an existing offtake agreement with a fixed price to provide protection to Prospect and the offtake partner from market fluctuations

In a sentence, what do you think makes your company such a compelling investment?

Prospect Resources is a compelling investment as it has strong mine economics, best in class management team and future growth opportunities to provide superior and diversified returns to shareholders.