Atlantic Lithium Ltd.

Atlantic Lithium Ltd. is a junior lithium development company headquartered in Sydney, Australia, operating primarily in Africa. The company's portfolio consists of 1 development project. Key assets include Ewoyaa. The company is a development-stage enterprise transitioning from explorer to producer, with a business model centered on a co-development agreement for its flagship asset. This partnership structure significantly de-risks the path to production, as the partner provides substantial funding for studies and initial development capital in exchange for an equity stake and an offtake agreement for 50% of future output. The operational plan is based on a simple, low-energy, and low-water-intensive processing method, primarily utilizing Dense Media Separation, with studies confirming the viability of a flotation circuit to enhance recovery post-commencement of production. Further value is expected from the commercialization of a secondary mineral by-product, with feasibility studies confirming its suitability for supply into the local ceramics industry. The organization's competitive position is supported by a low estimated capital and operating cost profile and close proximity to existing operational infrastructure, including a deep-sea port and high-voltage transmission lines.

The core strategy is the transition from an exploration entity to a developer by advancing its primary asset to a final investment decision and into construction. This involves a multi-pronged approach to de-risking, including securing all necessary permits, finalizing a competitive offtake partnering process for uncommitted production, and concluding a strategic project-level investment with a sovereign minerals wealth fund. The organization is prudently managing cash flow amidst challenging commodity price environments by prioritizing expenditure on critical-path activities. Concurrently, the entity is advancing exploration on its broader tenure portfolio, including a maiden exploration campaign in a neighboring jurisdiction to support long-term growth ambitions. Strategic objectives also include completing front-end loading studies and detailed design work to prepare for the award of key construction and operation contracts. The company aims to deliver significant value by establishing one of the world’s leading hard rock mineral mines.

The board structure consists of 3 executive directors and 4 non-executive directors, with 1 director being independent. Recent appointments include an independent non-executive director with extensive capital markets and project development experience, and a non-executive director representing a strategic sovereign wealth fund investor. A board skills matrix was updated during the year to align capabilities with the company's transition to development and production. Executive remuneration has been restructured to enhance alignment with shareholder interests. The short-term incentive plan now uses a weighted scorecard approach tied to specific corporate objectives across stakeholder relations, project execution, exploration, finance, and social responsibility. A new long-term incentive plan was introduced, granting performance rights with vesting tied to both absolute Total Shareholder Return and specific operational milestones, such as the receipt of key permits. The management team has been bolstered with key strategic appointments focused on adding mine-build and operating experience.

The organization's approach to sustainability is guided by its 'CARE' values: Collaboration, Authenticity, Respect, and Excellence. Stakeholder engagement is a core component, involving proactive and continuous dialogue with local communities, government bodies, and partners to ensure alignment and support. The company demonstrates its commitment through specific community initiatives, including contributing to the refurbishment of 4 local schools damaged by storms, sponsoring regional Workers' Day celebrations, and donating food items to 5 local communities ahead of cultural celebrations. Environmental stewardship is demonstrated through the completion of key permitting milestones, including 2 Environmental Protection Agency public hearings and the submission of an Environmental Impact Statement. The company also received the 'Best Performer in Exploration Award (Junior Category)' for the second consecutive year from the host country's Chamber of Mines, reflecting its commitment to regulatory compliance and industry standards.

The corporate structure is defined by key strategic partnerships and funding agreements. A co-development agreement with Piedmont Lithium Inc. provides significant project funding, whereby the partner earns up to a 50% interest by sole-funding US$17 million in studies and US$70 million in development capital. A non-binding Heads of Terms agreement was signed with the Minerals Income Investment Fund, the host country's sovereign minerals wealth fund, for a total strategic investment of US$32.9 million; this includes a completed US$5 million equity subscription in the parent company and a proposed US$27.9 million investment in the local operating subsidiaries for a 6% contributing interest. The largest shareholder, Assore International Holdings Limited, holds a 27.56% interest and made 2 unsuccessful non-binding takeover offers during the year. In May 2024, the company completed a listing on the Main Market of the Ghana Stock Exchange, becoming the first company of its type on the exchange, in addition to its existing listings on the ASX and AIM.