Nemaska Lithium Company Profile

Nemaska Lithium

North America’s next lithium hydroxide/carbonate producer
Company Exposure

Lithium Mine Development
and Processing Facility

Company Listing

Nemaska Lithium

Stock Code

TSX: NMX, OTCQX:NMKEF

Company Overview



Nemaska Lithium (TSX:NMX and OTCQX:NMKEF) is building one of North America’s richest and largest hard rock lithium mines and lithium salts (LiOH and Li2CO3) processing facility through a unique deposit in Nemaska and a state-of-the-art electrochemical plant in Shawinigan, both located in the province of Quebec, Canada. The project is permitted making it one of the next fully integrated lithium salts suppliers in the world.

Once in commercial production, Nemaska Lithium is projecting to be one of the world’s lowest cost producers of lithium hydroxide and lithium carbonate. (source – NI43-101 compliant feasibility study of January 8, 2018)
Currently Nemaska Lithium expects to complete its project financing in Q2 2018 and has a 12 month construction and commissioning time for the mine and 24 months for the electrochemical plant. Qualification of Nemaska Lithium’s lithium salts with key customers began in 2017 through its Phase 1 Plant which is producing commercial lithium hydroxide samples for customers.

PROJECTS


Nemaska Whabouchi Project Timeline

From Financing
  • 12 month: Construction and Commissioning of Mine and Concentrator
Shawinigan Hydromet Plant
  • Q4 2017: Phase 1 Plant producing commercial lithium hydroxide samples
  • 24 month: Construction and Commissioning of electrochemical plant

STRATEGIC OFFTAKE CUSTOMERS


  • FMC
  • Johnson Matthey
  • Definitive Agreement signed with Northvolt (April 2018)
  • SoftBank recently made an equity investment for 9.9% of the Company and has a right of first offer on 20% of the lithium products
  • Combination of fixed and market pricing
  • Investment grade counterparties
Live Financials

Latest Announcements

Share Price Performance

DIRECTORS & MANAGEMENT

Michel Baril – Chairman of the Board
Guy Bourassa – President & CEO
François Biron – Director
Paul-Henri Couture – Director
René Lessard – Director

CAPITAL STRUCTURE AND SHAREHOLDERS

BlackRock Investment Management (UK) Ltd. 4.43%
Investissement Québec Inc. 3.66%
Global X Management Co. LLC 3.27%
Van Eck Associates Corp. 2.60%
Guy Bourassa 1.42%
RobecoSAM AG 1.24%
FMR LLC 1.01%
OppenheimerFunds Inc. 0.83%
Fosun International Holdings Ltd. 0.83%
BMO Global Asset Management 0.34%

Nemaska Lithium is committed to a low carbon footprint, environmentally responsible production model throughout its process from concentrate to finished lithium salts.

GREEN LITHIUM PRODUCTION

At both the Hydromet plant and mine site the Company has designed a project that takes into account the goal of minimising the project footprint and recycling where possible.

Initiatives include:

  • Co-disposal of filter-pressed tailings with waste rocks at the mine site
  • Almost-100% process water reuse at both sites
  • Low GHG emissions due to use of electrolysis with hydroelectricity
  • Valorization of all side products with the result of having no waste at Hydromet site
LITHIUM HYDROXIDE PRODUCTION

Nemaska Lithium has developed an innovative method of producing lithium hydroxide via membrane electrolysis. This process was modified from an industrial process used for years in the chlor alkali industry. The key operating cost of this method of production is electricity which, in Quebec is contracted long term for $0.03 kWh, giving Nemaska Lithium visibility into its cost structure over the life of the project.

LOW COST VERTICALLY INTEGRATED PRODUCER

EXISTING INFRASTRUCTURE

Nemaska will mine its own source of lithium which is the 100% owned Whabouchi Lithium mine located in northern Quebec Canada.

The mine site is well serviced with existing infrastructure including:

  • Year-round road access
  • Commercial airport
  • Electricity
  • Lodging
  • Local workforce
WHABOUCHI MINE: HIGH QUALITY LOW COST LITHIUM SPODUMENE CONCENTRATE – 2016 FEASIBILITY RESULTS

Expected Mine Life and Payback Period
33 years with 2.9 year payback period

NPV
$3.3B (US$2.5B) 8% Discount (pre-tax)
$2.4B (US$1.8B) 8% Discount (after tax)

Life of Mine Revenue
$19.2B (US$14.8B) (average of $581M/yr for 33 years)

Internal Rate of Return (IRR)
34.4% (pre-tax)

Undiscounted Cash Flow
$13.2B (US$10.2B) (pre-tax)
$9.6B (US$7.4B) (after tax)

Total Initial Capital Costs
$801M (US$616M) in CAPEX including contingency

Average Cost Per Tonne – Spodumene Concentrate
$285/t (US$219/t) FOB Mine

Cost Per Tonne – Lithium Hydroxide
$3,655/t (US$2,811/t) FOB Shawinigan low cost producer

Average Cost Per Tonne – Lithium Carbonate 99.99%
$4,424/t (US$3,403/t) FOB Shawinigan low cost producer

Yearly Average Production
Mine: 1.1Mt of ore at 1.5% Li2O; 213,000 tonnes of concentrate (6.25% Li2O)
Hydromet plant: 23,000 t of lithium hydroxide; 11,000 t of lithium carbonate

Note: Sales Prices FOB Shawinigan Lithium Hydroxide USD$14,000/t, Lithium Carbonate USD$9,500/t for first 5 years and USD$12,000t thereafter

WHABOUCHI LITHIUM MINE EXCEPTIONAL CHARACTERISTICS:

  • High-grade reserve
  • Easily mined open pit
  • Low strip ratio

Low cost concentrate is crucial in hard rock production, as it takes 7.5t of concentrate to produce 1 tonne of lithium carbonate equivalent (LCE). Controlling the raw material provides a cost advantage over the Chinese producers who are all sourcing their concentrate from mines in Australia through contracted prices, not at cost, as is the case for Nemaska Lithium.

ON-SITE BATTERY POWERED MACHINERY

Nemaska Lithium is planning to use a fleet of electric utility vehicles at both the mine and Hydromet facilities. Charging stations have already been installed at Shawinigan facility with plans to install them at the mine site.

WHABOUCHI MINE TO SHAWINIGAN HYDROMET PLANT

Contact Details

WEBSITE: www.nemaskalithium.com

EMAIL: info@nemaskalithium.com

PHONE: +1 877 704-6038

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