Impact: Slightly Positive
Critical Elements (CRE) announced an updated Feasibility Study for its Rose Li-Ta project in the James Bay region of Quebec. CRE’s new technical team has completed a more stringent FS, incorporating accurate construction prices, additional process equipment, and a new camp. The FS contemplates a 1.6M tpa open pit mine producing ~3.5Mt of Li2O concentrate (75% chemical and 25% technical grade) over a 17-year mine life with an after-tax NPV8% of US$2.2B, an IRR of 65.7% and still low payback of 1.8 yrs. The study shows an incremental improvement to project economics despite higher trimmed annual production rates, and slightly higher prices. Higher costs reflect market conditions and while initial Capex increased >30%, Opex is in line with previous estimates. We note that Rose Lithium Project’s low Fe content makes its technical grade production ideal for the glass and ceramics industry, while overall purity allows chemical grade for use in Li ion batteries. We believe this study and its improved economics will go a long way in helping obtain project financing, potential off-takes and/or a strategic partner.
