The company released a Fort Cady resource of 93 million tonnes of borate and lithium at 6.3% borate and 0.037% lithium on December 12 and, just over two weeks later, has followed it up with an impressive economic study on a boric acid project.

The study included a capital expenditure target of US$98 million for a mine able to produce 82,000 tonnes per annum of boric acid and 18,000tpa of sulphate of potash (phase one). This would expand to 246,000tpa and 54,000tpa (phase two), respectively, with another $132 million of capital investment.

C1 operating costs (including by-product SOP credits) came in at $193 per tonne of boric acid for the phase two operation.

Factoring in such numbers, the full 25-year project (stage one and two) was expected to deliver a post-tax net present value (10% discount) of $687 million and an internal rate of return of 39%. 

Even at this early stage, the project's first full year of production was expected to provide EBITDA of $156 million. 

The rapid pace of development of Fort Cady is not slowing with the company working on updating the scoping study this quarter to include lithium by-product potential. This could be followed, in July, by a definitive feasibility study. The company is targeting first production in 2020.

ABR's shares have risen 83% since listing on the ASX in July as part of an A$15 million IPO. The stock closed at 41.5c today.