Omega Ukama 
PROSPECT Resources (Prospect) says its losses widened to $4,14 million in the half year to December 31, 2018 from $2,64 million loss in the prior period due to expenses relating to investments at Arcadia Lithium Mine.
The Arcadia Lithium project, which is located on the outskirts of Harare in Zimbabwe and represents a globally significant hard rock lithium resource, is the Australian Securities Exchange listed company’s flagship project.
The lithium and battery minerals company’s financial results show that 42 percent of the losses related to project generation and related expenses, most of which were from the Arcadia Mine project.
The company reported a significantly smaller loss after adjustment for exploration expenditure, impairments, project generation and share based payments of $1,8 million which however represented a 54 percent increase from the prior period.
“The adjusted loss has increased from the prior year period as the group progresses the Arcadia project and prepares for the next stage, being its development,” Sam Hosack, the company’s managing director said in a statement accompanying the results.
“Exploration and evaluation expenditure expensed relates to expenditure incurred by the parent, Prospect Resources on the Arcadia project,” he added.
Hosack said the figures should however be looked at in light of “how much the company has achieved in the period”.
During the period under review, the company successfully negotiated terms to increase its net ownership in Arcadia to 87 percent by reaching conditional agreement to purchase Farvic Consolidated Mines’ 17 percent shares.
Prospect also released the outcomes of its definitive feasibility study showing that the Arcadia Mine project will generate half a billion dollars, in present day values, over 12 years.
Earlier this month, the company announced that value engineering had successfully demonstrated that the Arcadia lithium project will be able to use equipment that will result in the reduction in capital expenditure by $2,3 million.
The new equipment will also result in reduction of operating expenditure by $7 per tonne as well as an $22 million increase in cash flows expected from the project.
The company also received Special Economic Zone status at Arcadia which will provide it with “an extensive list of benefits that includes tax relief and exemptions”.
Prospect said the status will also lead to “exemptions and reductions of costs and trade barriers associated with the import of raw materials and capital goods through to the exportation of concentrates”.
During the period under review, the company also produced lithium carbonate in its Kwekwe laboratory using Arcadia petalite.
“The results from the laboratory scale lithium carbonate have been fed through to the pilot plant design. The pilot plant provides the Group and potential off takers valuable knowledge on how to optimise the lithium carbonate process from the Arcadia petalite concentrates,” said Hosack.
Prospect has several other exploration activities in Zimbabwe and the Democratic Republic of Congo.
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