This is a fantasy projection with, after a lot of massaging, less than impressive numbers. Post tax IRR of 17.8% and capex of $2.08 billion US.
LithiumBank has low grade oil field brines in Alberta, Saskatchewan, no DLE expertise. The company is run by a couple of long time mining stock promoters. Since the co. announced this PEA a few days ago the stock has run almost 25%.
LITHIUMBANK REPORTS US$2.7 BILLION PRE TAX NPV FROM PRELIMINARY ECONOMIC ASSESSMENT ON A 31,350 TPA LHM OPERATION AT BOARDWALK LITHIUM BRINE PROJECT, ALBERTA, CANADA
LithiumBank Resources Corp. has released the highlights from the initial preliminary economic assessment (PEA) for the Boardwalk lithium brine project located in west-central Alberta, Canada. The completed National Instrument 43-101 PEA technical report will be filed on SEDAR within 45 days of this announcement.
- 31,350 metric tonnes per year of battery-grade lithium hydroxide monohydrate (LHM) over a 20-year period, the largest proposed LHM production in North America;
- $2.7-billion (U.S.) net present value (8 per cent) and 21.6-per-cent internal rate of return on a pretax basis;
- $1.7-billion (U.S.) NPV (8 per cent) and 17.8-per-cent IRR on an after-tax basis;
- Operating expense of $6,807 (U.S.)/tonne LHM;
- Direct lithium extraction (DLE) used to process Boardwalk brine will require less fresh water and have a surface footprint that is a fraction of hard-rock or evaporation lithium production;
- Located in Tier 1 jurisdiction, west-central Alberta, that has a long history of resource extraction, well-established infrastructure and an actively supportive government;
- Power to be generated on site using high-efficiency gas turbines with steam cogeneration that will lower the project's overall carbon footprint. The proposed gas turbine units may be run on 80 per cent hydrogen when a reliable supply is available;
- Multiple opportunities to significantly enhance project economics through optimization, further engineering and pending incentive tax credit;
- Project economics used $26,000 (U.S.)/t LHM and provide strong leverage to higher lithium prices.