First Phosphate Publishes PEA Outlining After-Tax NPV Of $1.6 Billion For Begin-Lamarche

FULL DISCLOSURE: The Deep Dive is long the equity of First Phosphate.

First Phosphate (CSE: PHOS) has published a preliminary economic assessment for its Begin-Lamarche property, found in the Saguenay-Lac-Saint-Jean region of Quebec. The PEA outlines an after-tax net present value of $1.59 billion for the project and an IRR of 33.%, using an 8% discount rate.

The PEA is based on average annual production of 900,000 tonnes of phosphate concentrate at 40% P2O5, and 380,000 tonnes of magnetite at 92% Fe2O3, over a 23 year mine life. The project is estimated to produce after-tax cash flow of $700 million in the first three years, leading to a 2.9 year payback for the project.

Initial capex for the project is $675 million, while sustaining capital is pegged at $317 million. Life of mine operating costs are estimated at $28.31 per tonne. Current plans call for a processing plant capable of processing 18,000 tonnes per day, with ore to come from an open pit mine.

“We are pleased with the results and timely completion of this PEA. Existing local infrastructure keeps our capex low, our mine size controlled and our mine economics robust. Our internal Pre-Feasibility work is also near completion and we are now in a position to determine the timing on our Feasibility Study,” commented CEO John Passalacqua.

The release of the PEA for Begin-Lamarche follows the company in 2023 releasing a PEA for Lac a l’Orignal, which outlined an after-tax net present value (5% discount) of $511 million for that project based on a 14-year mine life.

First Phosphate last traded at $0.215 on the CSE.

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FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of First Phosphate. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.