Sayona Mines: The Lithium Revolution Sayona delivers Moblan lithium feasibility with $1.6 billion NPV

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Amidst the global economic uncertainty, Sayona Mining, a key player in the lithium market, has made a significant stride with the announcement of the Moblan project’s feasibility. The project, which is projected to yield a net present value of $1.6 billion, holds the promise of bolstering Sayona’s position in the burgeoning lithium sector.

The Moblan Project: A Glimpse into the Financials

Sayona’s proposed open pit mine and 4,800 t/d processing plant are set to be the bedrock of the Moblan project. The ambitious initiative aims to produce a spodumene concentrate containing 6% lithium oxide (Li2O). Over a 21-year lifespan, the annual production is anticipated to reach 300,000 t/y of concentrate.

The company’s optimism is grounded in the promising financial outlook, with estimated total net revenue expected to reach C$14.4 billion and an EBITDA of C$11.2 billion. Sayona’s release highlighted that the positive financial returns were attributed to an estimated head grade of 1.36% Li2O and a life of mine (LOM) recovery rate of 74.7%.

This favorable trajectory positions the Moblan project at the nexus of economic viability and sustainable growth, with an all-in sustaining cost projected at C$748.04 per tonne of concentrate, against a forecasted market price of C$2,653/tonne ($1,990/tonne).

Reserves and Resource Potential

The Moblan project boasts probable reserves of 34.5 million tonnes, graded at 1.36% Li2O, included in measured and indicated resources of 49.9 million tonnes at 1.20% Li2O. Additionally, the inferred resource is estimated at 21.1 million tonnes at 1.0% Li2O.

Strategic Operations and Market Dynamics

In a strategic move, Sayona has already established a footprint in the lithium space through the North American Lithium (NAL) operations between Val d’Or and Amos, in the Abitibi-Temiscamingue hub of northern Quebec. The NAL operation, a joint venture of Sayona (75%) and Piedmont Lithium (25%), commenced spodumene production last year to meet the escalating demand for battery-grade lithium.

Despite its existing successes, the NAL operation faces headwinds as the spot price for lithium is projected to decrease to approximately $2,200/tonne by 2025 from an average of $42,840/tonne last year.

Looking Ahead: Navigating Market Uncertainties

Amidst the evolving market landscape, Sayona’s interim CEO, James Brown, expressed confidence in the resilience of the lithium market and its anticipated revival. Addressing market conditions, Brown iterated that Sayona is poised to recalibrate timelines and explore viable financing options and partnerships to propel the Moblan project towards successful production.

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