Feasibility Study

2018 Feasibility Study Highlights as compared to the Updated 2016 Feasibility Study 

(All calculations assume a 6.25% Li2O spodumene concentrate)
(All figures are quoted in Canadian Dollars (CDN$), unless otherwise specified)

2018 Feasibility Study 2016 Updated Feasibility Study
Expected Mine Life 33 years 26 years
Life of Mine Revenue $19.2 Billion (US$14.8 B)
(average of $581 M/yr)
$9.2 Billion (US$7.4 B)
(average of $354 M/yr)
Pre-Tax Net Undiscounted Cash Flow

$13.2 Billion (US$10.2 B)

(avg. of $465 M/yr before initial CAPEX)

$6.2 Billion (US$4.9 B)

(avg. of $259 M/yr before initial CAPEX)

After-Tax Net Undiscounted Cash Flow 9.6 Billion (US$7.4 B)

3.9 Billion (US$3.1 B)

Pre-Tax NPV 8% Discount (base case)  

$3.3 Billion (US$2.5 B)

$1.9 Billion (US$1.5 B)

After-Tax NPV 8% Discount (base case)

$2.4 Billion (US$1.8 B)

$1.2 Billion (US$0.9 B)

Pre-Tax Internal Rate of Return (IRR)        

34.4%

37.7%

After-Tax Internal Rate of Return (IRR)

30.5%

30.3%

Total Initial Capital Costs

$801 Million (US$616 M) in CAPEX including contingency

$549 Million (US$439 M) in CAPEX including contingency
After-Tax Pay Back of Capital Costs* 2.9 years 2.7 years
Average Selling Price Lithium Hydroxide over LOM US$14,000/t Ex Works Shawinigan US$9,500/t Ex Works Shawinigan
Average Selling Price Lithium Carbonate over LOM US$11,719/t Ex Works Shawinigan US$7,000/t Ex Works Shawinigan
Spudumene Concentrate Average Cost Per Tonne
(Open Pit)
$285/t (US$219/t) Ex Works Whabouchi Mine $174/t (US$139/t) Ex Works Whabouchi Mine
Spodumene Concentrate Average Cost Per Tonne 
(Underground)
$353/t (US$272/t) Ex Works Whabouchi Mine $221/t (US$177/t) Ex Works Whabouchi Mine
Average Cost Per Tonne
Lithium Hydroxide (from Open Pit concentrate)
$3,655/t (US$2,811/t) Ex Works Shawinigan $2,645/t (US$2,116/t) Ex Works Shawinigan
Average Cost Per Tonne
Lithium Carbonate (from Open Pit concentrate)
$4,424/t (US$3,403/t) Ex Works Shawinigan $3,382/t (US$2,706/t) Ex Works Shawinigan
Life of Mine Production

7 million tonnes spodumene concentrate converted into almost equal to 770,000 tonnes battery grade lithium hydroxide and almost equal to 361,000 tonnes of battery grade lithium carbonate. 

(average per year of almost equal to 213,000 tonnes of concentrate to produce almost equal to 23,000 tonnes of lithium hydroxide and almost equal to 11,000 tonnes of lithium carbonate)

5.5 million tonnes spodumene concentrate converted into almost equal to 714,000 tonnes battery grade lithium hydroxide and almost equal to 84,000 tonnes of battery grade lithium carbonate.       

(average per year of almost equal to 213,000 tonnes of concentrate to produce almost equal to 28,000 tonnes of lithium hydroxide and almost equal to 3,000 tonnes of lithium carbonate)

Exchange Rate $C to $US 1 : 0.769 1 : 0.80

* After start of commercial production

2018 Whabouchi Feasibility Study Assumptions

Mining Parameters (OP + UG) Tonnes Processed (Mt) 37
Waste Rock &Overburden (Mt) 72
Diluted Grade (% Li2O) 1.40
Mine Life (LOM) (years) 33
Mining Cost Parameters Pre-Production CAPEX ($M) $7
Hydroelectricity Price ($/kWh) $0.053 - (H-Q, Tariff L)
LOM OPEX Open Pit
($/t concentrate)
$98
LOM OPEX Underground
($/t concentrate)
$167
Concentrator Cost Parameters CAPEX ($M) (incl closure costs payment) $263
OPEX concentrator ($/t concentrate) $95
OPEX Tailings & Water Management
($/t concentrate)
$13
G&A OPEX ($/t concentrate) $72
OPEX Transport Cost ($/t concentrate) $50
Electrochemical Plant Cost parameters CAPEX ($M) $531
OPEX ($/t Lithium Product)
Hydromet plant only
$1,817
OPEX ($/t Lithium Product)
All inclusive
$4,012
Overall Sustaining Capital LOM SUSTAINING CAPEX ($M) $604
Revenue Parameters (real terms) Gross Revenue ($M over LOM)
Concentrate $264
Lithium Hydroxide (LiOH-H2O) $13,283
Lithium Carbonate (Li2CO3) $5,504
Lithium Hydroxide (LiOH-H2O) toll services $129
Cash Operating Margin $14,640
Lithium compounds Parameters Product (US $ over LOM Average Selling price / t)
Lithium Hydroxide (LiOH-H2O) US $14,000
Lithium Carbonate (Li2CO3) US $11,719
Exchange rate 1 C$=0.769 US$
Schedule Parameters Date for NPV Calculation January 1, 2018
Construction Mobilization Q3, 2016
Concentrator Commissioning Starts Q2, 2019 (est.)
Commercial Production Declared Q4, 2019 (est.)
Electrochemical Plant Commissioning Starts Q1, 2020 (est.)
Commercial Production Declared Q4, 2020 (est.)
Valuation Parameters Pre-Tax NPV 8% ($B) $3.3
Pre-Tax IRR 34.4%
After-Tax NPV 8% ($B) $2.4
After-Tax IRR 30.5%

Notes

2016 Feasibility Study

The complete NI 43-101 Technical Report (“Report”) was prepared by Met-Chem, a division of DRA Americas Inc. and Seneca Inc. and signed by each Qualified Person; it was posted on www.sedar.com on May 19, 2016. The technical information in this press release has been reviewed by Mr. André Boilard, Eng. of Met-Chem, Qualified Person as defined under in National Instrument 43-101.

The Report includes mineral reserve estimates which were prepared respectively for the underground and the open pit by Mr. Daniel Gagnon, Eng. and Mr. Jeffrey Cassoff, Eng. Both Mr. Gagnon and Mr. Cassoff are independent Qualified Persons as defined by NI 43 101. The Report consists of summary results from the updated Feasibility Study. The Report was prepared under the direction of Mr. André Boilard, Eng. of Met-Chem and reviewed and certified by individuals responsible for their respective portions of the Report. Mr. Boilard and all other individuals providing certifications are Independent Qualified Persons as defined by NI 43 101. Among them are, Mr. Jean-Philippe Paiement, M.Sc. P.Geo., of SGS Geostat, Mr. Raymond Simoneau, Eng. and Mr. Denis Carrignan, Eng. from Seneca Inc., Mr. Michel L. Bilodeau, Eng., M. Sc. (App.), Ph.D, and Mr. Tony Boyd of Noram Engineering & Construction Ltd.

Click here for full 2016 Feasibility Report

2018 Feasibility Study

The complete NI 43-101 Technical Report ("Report") being prepared by Met-Chem/DRA and Hatch Ltd. and signed by each Qualified Person will be posted on www.sedar.com within 45 days. It will also be made available on Nemaska Lithium's website at http://nemaskalithium.com. The technical information in this press release has been reviewed and approved by Mr. Rock Gagnon, Eng. of Met-Chem/DRA, and other Qualified Persons as relevant to their area of responsibility and expertise.

Click here for 2018 Feasibility Study Report