Sayona Mining Limited has announced that it conducted a Definitive Feasibility Study (DFS) that covers the North American Lithium (NAL) operation and the nearby Authier Lithium Project.
Sayona said the DFS estimates over $2.2 billion pre-tax net present value (NPV) for spodumene concentrate produced from the combined NAL and Authier projects.
The company noted that the NPV demonstrates the Abitibi hub‘s long-term financial and technical viability.
It added that revisions to mineral resources and ore reserves improved head grade, recovery and total production, driving enhanced NPV compared with 2022 Pre-Feasibility Study (PFS) outcomes.
NAL’s production capacity will consist of 226,000 tonnes per annum for the next four years until the commencement of downstream operations, subject to joint venture approval.
The operation is expected to generate an estimated total net revenue of $7.6 billion and $3.7 billion in earnings before interest, taxes, depreciation and amortisation.
According to the company, the revised estimates created the opportunity to boost project economics and enabled it to improve its understanding of the mine’s block model.
NAL and Authier are part of Sayona Quebec, which is 75 per cent owned by Sayona Mining and 25 per cent owned by Piedmont Lithium Inc.
The company said the NAL operation would represent North America’s most significant source of hard rock lithium production, boosting Quebec’s plans to develop a local battery sector from mining to manufacturing.
According to Sayona Managing Director Brett Lynch, the positive DFS reaffirmed the company’s confidence in the long-term value of the NAL operation.
“This DFS demonstrates the benefits of our hub strategy in Abitibi, with NAL proving to be one of the lowest cost and highest returning investments in the lithium industry. We are now in the process of successfully de-risking NAL operations, which will generate long-term, sustainable returns for shareholders together with providing new jobs and investment for Quebec,” he added.
