PMET Updated CV5 Study Puts After-Tax NPV at ~CA$5.10B

PMET Resources (ASX:PMT) released an Updated Feasibility Study for its CV5 Pegmatite in Quebec that changes the development plan to mine the higher-grade Nova Zone underground first and adds tantalum recovery, lowering projected operating costs.

The study estimates an after-tax NPV8% of ~CA$5.10B (US$3.72B) and IRR of ~40.4% at a long-term spodumene price of US$1,788/t and a tantalum price of US$120/lb, and an after-tax NPV8% of ~CA$3.29B (US$2.40B) at near broker consensus spodumene pricing of ~US$1,400/t. Initial CAPEX for Phase 1, at 2.2 Mtpa processing capacity, is CA$1,391M, or CA$1,080M net of anticipated pre-production credit and tax credits, and Phase 2 expansion CAPEX is CA$672M. Average LOM Total Cash Operating Cost is CA$594/t (US$433/t), 19% lower than the prior study, and AISC is CA$657/t (US$480/t), 18% lower, both net of the tantalum credit. Phase 1 production is to ramp up to ~560,000 tpa of spodumene concentrate in the first 3 years, with Phase 2 lifting capacity to up to ~800,000 tpa, over a LOM of ~20 years. The study declares a maiden tantalum Mineral Reserve, with a Probable Mineral Reserve of 83.0 Mt at 1.27% Li2O and 148 ppm Ta2O5.

A final investment decision has yet to be made and is targeted for late 2027, with plant commissioning targeted from the latter part of 2029. The cost measures are non-IFRS, the tax credits are anticipated, and final mine authorisation is still being sought under the ESIA.