Mont Royal Resources (ASX:MRZ) has reported an updated preliminary economic assessment (PEA) for its Ashram Rare Earths and Fluorspar Project in Québec, Canada, confirming robust economics for the large-scale development.
The updated PEA delivers a post-tax net present value of C$2.03 billion ($2.06 billion) at an 8% rate, a post-tax internal rate of return of 22.0%, and a payback period of 3.9 years from production start.
Managing Director Nicholas Holthouse says the study marks a ‘major step forward’ for the project.
“The updated PEA [confirms] a large-scale, long-life development with strong underlying economics and a clear pathway to advancement,” Holthouse says.
“The study has highlighted … [the] scale, favourable mineralogy, and competitive cost profile, supporting its potential to become a meaningful long-term supplier of rare earth products into Western supply chains.”
Development pathway and strategic value
Ashram targets an average annual production of 17,466 tonnes of saleable rare earth oxide (REO) over a 30-year mine life, including 4,035 tonnes of neodymium and praseodymium oxides annually.
Initial capital expenditure is estimated at C$1.23 billion, including 30% contingency. Access road costs fall under operating expenditure under a shared infrastructure model.
The development strategy incorporates on-site concentration at Ashram producing a mixed rare earth concentrate that would be transported to a proposed processing facility in Saguenay, Québec.
The company projected life-of-mine revenue of C$24.6 billion, with an EBITDA margin of 62.7%. Competitive unit costs are a highlight of the project, with C1 cash costs of C$17.99 per kilogram of saleable REO.
Through this project, investors gain access to a suite of high-value magnet rare earths — neodymium, praseodymium, dysprosium, and terbium — all of which are critical for electric vehicles, wind turbines, and defence applications.
Mont Royal plans to commence a Prefeasibility Study in H2 2026, alongside environmental baseline studies, permitting programs, and stakeholder engagement across the Ashram and Saguenay sites.
Write to JC Villarba at Mining.com.au
Images: Mont Royal Resources
