Lithium specialist Sayona Mining (ASX:SYA) is set to undertake a definitive technical study for the restart of lithium chemicals production at its North American Lithium (NAL) operation in Quebec.
The decision follows a ‘positive’ preliminary technical study for lithium carbonate production at the NAL operation, ascribing a pre-tax net present value (NPV) for the project’s standalone carbonate plant of $3.2 billion, with a pre-tax internal rate of return (IRR) of 60%.
Sayona says total earnings before interest, tax, depreciation, and amortisation (EBITDA) over the 16-year life of the carbonate plant amount to $7.5 billion.
What’s more, the carbonate plant takes the combined, fully integrated NPV for the NAL to $5.4 billion.
The preliminary study has prompted Sayona to commission a definitive technical study for the production of battery-grade lithium carbonate from spodumene concentrate, and, subject to the timing and outcome of this study, Sayona says it could commission the plant as early as 2026.
The company is attending the 2023 Gold Coast Investment Showcase this week.
Sayona Managing Director Brett Lynch says the preliminary study showcases the ‘outstanding’ value the company has generated from its strategy of acquiring a brownfields plant with existing assets.
“With an accelerated pathway to lithium carbonate production, we are rapidly advancing our goal of becoming a fully integrated producer of lithium chemicals.
“NAL is set to become the only lithium operation with a concentrator and carbonate plant all on the same site in North America”
Significantly, NAL is set to become the only lithium operation with a concentrator and carbonate plant all on the same site in North America.
Lithium demand continues to increase, and the Canadian and US governments have clearly shown their intentions to develop a North American supply chain, from mining to processing and manufacturing.”
Based on its preliminary study, Sayona expects to produce around 372,000 tonnes of lithium carbonate from the NAL plant over its 16-year lifespan.
The company pegs its fixed and variable operating costs for the plant at just under $3,400 per tonne of lithium carbonate, though this does not include the cost of the NAL spodumene to be purchased.
Nevertheless, to achieve the development schedule outlined in the preliminary study, Sayona says it will need to be awarded major equipment packages early on to secure equipment delivery in line with the preliminary construction schedule.
Sayona holds a 75% interest in the NAL, with the remaining 25% owned by fellow ASX-listed Piedmont Lithium (ASX:PLL).
Alongside its North American lithium assets, Sayona owns a string of lithium, gold, and graphite projects in Western Australia. The company officially restarted production from its flagship NAL operation in March 2023.
Write to Joshua Smith at Mining.com.au
Images: Sayona Mining Ltd
