Keliber has today released the Updated Definitive Feasibility Study (“UDFS”) for the Lithium Project in Central Ostrobothnia, Finland. The updated Definitive Feasibility Study to produce battery-grade lithium hydroxide (LiOH) confirms a solid financial and technical feasibility of the project, with significant improvements in the key financials compared to the Definitive Feasibility Study (“DFS”) from 2019.
| Key Figures | Unit | UDFS2022 | DFS2019 |
| Financial | |||
| Post-tax NPV (8% real discount rate) | EUR million | 1,228 | 384 |
| Post-tax internal rate of return (IRR) | % | 31 | 24 |
| Payback period (from start of production) | Years | 3.5 | 4.1 |
| Other | |||
| Life of Mine | Years | 16 | 13 |
| Total Ore Reserves | Mt | 12.3 | 7.5 |
| Production battery-grade lithium hydroxide (own ore) | t/pa | 15,000 | 12,500 |
For the UDFS, Keliber states to have used a price forecast for the battery-grade lithium hydroxide prepared by Roskill – Wood Mackenzie, with the average LiOH price used in their financial evaluation of USD 24,936/t.
Nordic Mining owns 12.0% of the shares in Keliber.
Nordic Mining’s carrying amount for the investment in Keliber as per 31 December 2021 was NOK 190.5 million based on a fair value assessment using comparable valuation analysis using industry practice P/NAV and EV/Resource multiples from a peer-group of lithium developers at PFS/DFS. The fair value assessment assumed a Post-Tax NPV on 100% basis of around EUR 365 million (8% real discount rate) derived from the investor material provided by Keliber in relation the investment by Sibanye-Stillwater Limited in Q2 2021. For details of the fair value assessment see Interim Report for Q4-2021: Nordic Mining ASA (EN Expand: NOM) – Interim Report per 31 December 2021.
Keliber’s press release with more details of the Updated Definitive Feasibility Study is available at: https://www.keliber.fi/en/news/news-releases-and-publications/B651D29BB5259505/
For further information, please contact CEO Ivar S. Fossum, telephone +47 930 96 850 or CFO Christian Gjerde, telephone +47 980 60 909.
