Temas Resources Files PEA Outlining $6.6 Billion After-Tax NPV(8%) At La Blache
FULL DISCLOSURE: This is sponsored content for Temas Resources.
Temas Resources (CSE: TMAS) has filed its preliminary economic assessment report for its flagship La Blache titanium-vanadium-iron project in Quebec. The filing follows the announcement of the PEA last month by the company.
The preliminary economic assessment outlines an after-tax net present value (8%) of $6.6 billion for the project, based on a life of mine of 14 years and annual production of 660,000 tonnes of titanium dioxide a year. The estimate is based on US$2,200 per tonne TiO2, US$14,000 per tonne V2O6, and US$125 per tonne Fe2O3.
The after-tax internal rate of return is estimated at 60.8%, while payback is estimated at 25 months. The project has an estimated initial capital cost of $1.2 billion, with life of mine sustaining capital estimated at $0.6 billion.
“We are extremely pleased with the strong economics presented in this PEA on the La Blache Titanium-Vanadium-Iron Project in Quebec. Titanium has been trading well above our assumptions of USD $2,200 per tonne for over three years and at over USD $3,000 per tonne since August 2022. We believe this trend will continue due to the increasing demand for TiO2, major global supply coming to end of life, and lack of both brownfield expansion and new projects coming online in North America,” commented CEO Tim Fernback.
Temas noted this morning that these figures changed slightly from its initial announcement in February, with the after-tax IRR improving from 55.1% to 60.8%, while the after-tax NPV(8%) moved to $6.6 billion from $6.8 billion. After tax cash flow meanwhile is estimated at $14.9 billion.
“The PEA further increases our confidence in the Project and showcases our proprietary, environmentally friendly extraction technology. With a current market cap of CAD $5M, I am excited to engage with all our stakeholders to unlock the value of this highly robust Project as we advance the asset forward.”
READ: Temas Resources Options Additional Claims At La Blache With Historical Resource Estimate
The La Blache property, found in the Cote Nord region of Quebec, consists of 117 claims covering 6,203 hectares of ground, which yesterday was expanded to include the La Blache Lake Extension Property, which further consolidated its holdings in the region. The addition of the extension property adds 44 claims and 2,432.5 additional hectares to its land package, along with a historical resource estimate.
The filed preliminary economic assessment can be found on Sedar+.
Temas Resources last traded at $0.215 on the CSE.
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