Keliber updated DFS: Lithium hydroxide production significantly improves profitability
Keliber Oy’s Definitive Feasibility Study (“DFS”) for the lithium hydroxide production shows a significant improvement in profitability compared to previous assessments. The updated DFS shows a pre-tax NPV (8% discount rate) of EUR 510m, pre-tax IRR of 28% and a payback period of 3.7 years.
Keliber Oy (“Keliber”) published the DFS for the Lithium Project (“the Project”) during summer 2018 based on the production of battery-grade lithium carbonate. However, Keliber estimated that lithium demand, especially from the cathode chemical, lithium-ion battery and electric vehicle manufacturers in Europe, will move quickly to lithium hydroxide and therefore commenced a test program related to production of lithium hydroxide together with Outotec Finland in autumn 2018.
The technical and economic studies related to the pilot program have now been completed. The changes made to the production process only concern the downstream part of the chemical plant in Kokkola and are minor.
Keliber intends to publish an updated executive summary of the DFS by the end of Q1 2019.
Highlights of the updated DFS are provided below. The exchange rate used in the calculations is 1.00 € = 1.18 US$.
| Key figure | Unit | Updated DFS | DFS published on June 14, 2018 | Difference (%) |
| Expected Life of Mine (Expected Life of Operations) | years | 13 (20) | 13 (20) | No change |
| Pre-Tax NPV (@ 8%) | MEUR | 510 | 295 | 73 % increase |
| Post-Tax NPV (@8%) | MEUR | 384 | 225 | 71 % increase |
| Pre-Tax IRR | % | 28 | 24 | 17 % increase |
| Post-Tax IRR | % | 24 | 22 | 9 % increase |
| Pre-Tax Payback Period | years | 3,7 | 5,5 | 49 % shorter |
| Post-Tax Payback Period | years | 4,1 | 5,7 | 39 % shorter |
| Annual mine production | ktpa | 573 | 570 | 0.5 % increase |
| Annual spodumene concentrate production | ktpa | 113 | 112 | 1 % increase |
| Average annual battery-grade lithium hydroxide sold | t | 12 112 | - | N/A |
| Total revenue (Expected Life of Operations) | MEUR | 3 060 | 2 281 | 34 % increase |
| Unit OPEX (includes purchased spodumene concentrate) | EUR/t LiOH | 4 541 | - | N/A |
| Unit OPEX (production only from Keliber’s currently known ore reserves) | EUR/t LiOH | 4 125 | - | N/A |
| Total EBITDA (Expected Life of Operations) | MEUR | 1 945 | 1 213 | 60 % increase |
| Total CAPEX | MEUR | 313 | 255 | 23 % increase |
Further details can be found in Keliber’s press release at https://www.keliber.fi/en/investors/news-releases-and-publications/24A8328EFE40564D/.
Please note that Keliber will provide a video conference presenting the main results and information from the updated DFS in English today at 10.00AM (CET). The presentation can be followed live from this link. A recording of the video conference will be made available on www.keliber.fi/en after the conference.
Nordic Mining ASA holds approximately 18.5% of the shares in Keliber Oy.
For further information, please contact CEO Ivar S. Fossum, telephone +47-9309 6850.
Oslo, 28 February 2019
Nordic Mining ASA
Nordic Mining ASA (www.nordicmining.com)
Nordic Mining ASA (the “Company”) is a resource company with focus on high-end industrial minerals and metals. The Company’s project portfolio is of high international standard and holds significant economic potential. The Company’s assets are in the Nordic region.
Nordic Mining is undertaking a large-scale project development at Engebø on the west coast of Norway where the Company has rights and permits to a substantial eclogite deposit with rutile and garnet. Nordic Mining also holds 18.5% of the shares in Keliber Oy, which is developing a lithium project in Finland. Nordic Mining holds rights for exploration of high-purity quartz in Kvinnherad in Norway and at Reinfjord in northern Norway where a prospective area of sulphide mineralisation has been discovered. Nordic Mining is also exploring opportunities related to seabed mineral resources.
Nordic Mining is listed on Oslo Axess with ticker symbol “NOM”.