NI 43-101 Report

NI 43-101 Technical Report

(All calculations assume a 6.25% Li2O spodumene concentrate)

All amounts are in Canadian dollars, except where otherwise indicated, and some amounts are also rounded for presentation. 2019 Technical Report
Total CAPEX 1

(CAD in M, including contingency)
  Total Incurred as at 
May 31, 2019 
Remaining
Whabouchi 1: 448 223 225
Plant 1: 821 117 704
Total:  1,269  340  929
Spodumene Concentrate Average OPEX per Tonne of 6.25%Li2O
(Transformation at Whabouchi + transportation to the Plant)
CAD 452 (USD 347)
Lithium Hydroxide Average OPEX per Tonne of LiOH-H2O
(Transformation at the Plant)
CAD 2,513 (USD 1,933)
Total OPEX per Tonne of LiOH-H2O

(Whabouchi + Plant)
CAD 5,223 (USD 4,018)
Before-Tax Net Present Value (NPV)2 @ 8% Discount Rate CAD 3.1 B (base case)
@ 10% Discount Rate CAD 2.3 B
Before-Tax Internal
Rate of Return (IRR) 2
30.3%
After-Tax NPV2 @ 8% Discount Rate CAD 2.3 B (base case)
@ 10% Discount Rate CAD 1.7 B
After-Tax (IRR) 2 27.4%
Average Selling Price Lithium Hydroxide per tonne over Life of Mine USD 14,000 (CAD 18,200)
Open pit Mine Proven and Probable Reserves 27.9 M tonnes at 1.33% Li2O
Underground Mine Proven and Probable Reserves 8.7 M tonnes at 1.21% Li2O
Combined Open pit and Underground Proven and Probable Reserves

*The Updated NI 43–101 Technical Report confirms that more resources were identified below the mineral reserves level but are not considered Proven and Probable Reserves.
36.6 M tonnes at 1.30% Li2O
Life of Mine Production 6.6 M tonnes of spodumene concentrate to be converted into ≈1.1 M tonnes of battery-grade lithium hydroxide and 368 k tonnes of spodumene concentrate to be sold on the market.
Expected Mine Life 33 years
Life of Mine Revenue CAD 20.25 B
Exchange rate used for CAD to USD 1.30 : 1.00 


1
The total CAPEX includes amounts for corporate owners’ costs, which are ≈CAD 42 M for Whabouchi and ≈CAD 29 M for the Plant.  

2 The NPV and IRR exclude sunk costs of ~CAD 340 M from calculations. This is the NI 43–101 standard.

The integral version of the NI 43-101 Technical Report posted on SEDAR August 9, 2019, is available here.

Notes

Met-Chem, a division of DRA Americas Inc. (“DRA/Met-Chem”) has provided engineering and integration services for all aspects of the Updated NI 43-101 Technical Report on the Whabouchi Lithium Mine and Shawinigan electrochemical plant with the participation of other companies. The Technical Report includes the Resource Estimation (by SGS Geostat “SGS”), Open Pit Mine Design and Mineral Reserve Estimation (by BBA Inc. “BBA”), Underground Mine Design (by DRA/Met-Chem), concentrator (by DRA/Met-Chem), Electrochemical plant (by Hatch and NORAM), infrastructure (by Hatch for Shawinigan and DRA/Met-Chem elsewhere), waste rock and tailings disposal and water management (by SNC-Lavalin “SNC”), capital and operating costs (by Hatch for Shawinigan and DRA/Met-Chem elsewhere), and economic analysis (by DRA/Met-Chem).