Lithium Mine Development and
TSX: NMX, OTCQX:NMKEF
Nemaska Lithium (TSX:NMX and OTCQX:NMKEF) is building North America’s richest and largest hard rock lithium project and lithium salts (LiOH and Li2CO3) processing facility through a unique deposit in Nemaska and a state-of-the-art transformation plant in Shawinigan, both located in the province of Québec, Canada. The project is fully permitted and construction has begun, 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 lowest cost producers of lithium hydroxide and lithium carbonate in the world. (source – NI43-101 compliant feasibility study of January 8, 2018)
The Company is well positioned to enter the chain of supply with lithium concentrate by 2018 and lithium salts by 2019. Qualification of Nemaska Lithium’s lithium salts with key customers began in 2017.
Share Price Performance
Michel Baril – Chairman of the Board
Guy Bourassa – President & CEO
François Biron – Director
Paul-Henri Couture – Director
René Lessard – Director
Capital Structure and Shareholders
Investissement Québec Inc. – 7.35%
TQC Group (Netherlands) Cooperatief UA – 4.77%
BlackRock Investment Management (UK) Ltd. – 4.45%
Global X Management Co. LLC -3.16%
RobecoSAM AG – 1.25%
Fidelity (Canada) Asset Management ULC – 1.18%
Van Eck Associates Corp. – 1.08%
Hauck & Aufhäuser Privatbankiers AG – 0.97%
OFI Global Asset Management, Inc. – 0.93%
Baring Asset Management Ltd. – 0.66%
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.
- 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.
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
$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)
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
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
- local workforce
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.