Neo Lithium Reports US$1.13 Billion After-Tax NPV For Tres Quebradas
Neo Lithium Corp. (TSXV: NLC) shared on Tuesday the results of its feasibility study for the production of lithium carbonate at its Tres Quebradas lithium brine project in Catamarca Province, Argentina. The results highlighted US$1.13 billion after-tax NPV8%.
Compared to the previous pre-feasibility study, the results of the feasibility study show mine life extends to 50 years from 35 years. After-tax IRR is expected to be at 39.5% and the payback period is expected to be after 2.25 years from the start of the production.
The property is estimated to have an annual average production of 20,000 lithium carbonate tonnes. Furthermore, the property is expected to incur cash operating costs of US$2,954 per lithium carbonate tonne.
On capital costs, the property’s initial spending came to US$370.5 million, and sustaining capital spending is expected to be US$143.5 million for the life of mine.
The study also reported measured & indicated resources of 1.75 million tonnes of lithium carbonate at 800 mg/L cut-off and 5.37 million tonnes of lithium carbonate at 400 mg/L cut-off.
Proven and probable reserves for the property are reported to be 0.77 million tonnes of lithium carbonate equivalent for the first 20 years of production and 1.67 million tonnes of lithium carbonate equivalent for the life of mine.
Earlier this month, the mining firm announced that it will be acquired by Chinese mining company Zijin Mining Group Co. in a $960 million all-cash deal.
Neo Lithium last traded at $6.26 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.