Patriot Battery Metals’ Flagship Project PEA Reports $2.9 Billion After-Tax NPV8
In a detailed preliminary economic assessment recently released, Patriot Battery Metals (TSX: PMET) has outlined the potential of its flagship Shaakichiuwaanaan lithium project, located in the Eeyou Istchee James Bay region of Québec.
The Shaakichiuwaanaan Project’s PEA paints a picture of robust economic viability. With a targeted production capacity of 800,000 tonnes per annum, the project is expected to become the fourth largest spodumene concentrate producer globally, and the largest in the Americas. According to the PEA, the project’s after-tax net present value at an 8% discount rate is projected at $2.9 billion, with an after-tax internal rate of return of 34%.
The project’s lifecycle, projected at 24 years, is expected to generate around $8.3 billion in cash flow over its lifetime, with a payback period of an estimated 3.6 years.
Ken Brinsden, President and CEO of Patriot Battery Metals, emphasized the strategic significance of the Shaakichiuwaanaan Project, stating, “Although studies are still at an early stage, the potential outcomes of the PEA for the Shaakichiuwaanaan Project highlight the opportunity for Patriot Battery Metals to become a global lithium leader and a key supplier of lithium raw materials to the emerging North American and European battery materials supply chain.”
A key aspect of the PEA is its focus on the high-grade Nova Zone within the CV5 Spodumene Pegmatite, which will be mined using a combination of open pit and underground methods. The Nova Zone, with its 21.8 million tonnes of high-grade lithium resource averaging 2.1% Li2O, will be prioritized to improve the project’s economic viability.
The project’s first stage involves an initial capital expenditure of $761 million, which will establish a 400 ktpa production capacity. This will be followed by a second phase, costing an additional $504 million, to double the production capacity to 800 ktpa.
Notably, the project’s cash operating costs are estimated to be $510 per tonne, making it one of the lower-cost lithium producers globally.
The project’s low strip ratio (3.7:1) for its open-pit operations further minimizes its environmental footprint, a key consideration in gaining regulatory approvals and maintaining strong community support.
A feasibility study is anticipated to begin in the third quarter of 2025, focusing on further optimizing the project’s economics and exploring options for a more targeted, high-grade production scenario. This study will also evaluate the potential for early access to the high-grade Nova Zone. A final investment decision for the project remains on track for calendar year 2027.
Patriot Battery Metals last traded at $4.66 on the TSX.
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.
