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.
