NOM-Significantly improves profitability of Keliber’s Lithium


Updated Definitive Feasibility Study: Lithium hydroxide production significantly improves profitability of Keliber’s Lithium Project

The economic calculations of Keliber Oy’s Definitive Feasibility Study for the lithium hydroxide production show a significant improvement in profitability.

Keliber Oy’s (“Keliber” or “the Company”) updated Definitive Feasibility Study for the lithium hydroxide production (“updated Definitive Feasibility Study” or “updated DFS”) confirms Lithium Project’s (“the Project”) strong financial and technical feasibility. All the key financial figures have improved significantly compared to the Definitive Feasibility Study based on lithium carbonate production (“DFS”) published in summer 2018. Keliber’s Lithium Project shows a pre-tax NPV (8 % discount rate) of MEUR 510, a pre-tax IRR of 28 % and payback period of 3.7 years. The pre-tax NPV is now 73 % higher, pre-tax IRR 17 % higher and pre-tax payback period 49 % shorter than in the lithium carbonate DFS published in summer 2018.

“The strong economics of lithium hydroxide production show that our environmentally sustainable production process is economically viable. We believe that the strong economics will have a positive impact on the financing of our construction phase, as well as the completion of customer negotiations. Our project is important on a European scale and locally. We will be an important and essential part of future European lithium value chain supporting Europe’s need for domestic supply of critical raw materials. Our planned investment is one of the biggest investments in Central Ostrobothnia for decades. Our future production will directly employ about 150 people, with the multiplier effect on employment being even greater,” says Mr. Pertti Lamberg, CEO of Keliber Oy.

The key financial figures and data for the updated DFS are presented in this release. The company will publish an updated Executive Summary by the end of the first quarter (Q1 2019).

Updated key figures and conclusions

Keliber published the Definitive Feasibility Study for the Lithium Project in summer 2018 based on the production of battery-grade lithium carbonate. However, the Company estimated that lithium demand, especially from the cathode chemical, lithium-ion battery and electric vehicle manufactures locating in Europe, will move quickly to lithium hydroxide and the Company commenced a test program related to production of lithium hydroxide together with Outotec Finland in autumn 2018.

The Company completed the pilot-tests included in the test program by the end of 2018. During the pilot-tests, battery-grade lithium hydroxide was produced successfully. All 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 small. The annual design capacity for the production of lithium hydroxide will be 12 500 tonnes, about 1 500 tpa higher than the previous planned production of lithium carbonate.

The updated DFS of Keliber’s Lithium Project shows a pre-tax NPV (8% discount rate) of MEUR 510 (73 % increase), a pre-tax IRR of 28 % (17 % increase) and payback period of 3.7 years (49 % shorter). The Project has potential to generate total life of operations revenues of MEUR 3 060 (34 % increase) and operating cash flow of MEUR 1 945 (60 % increase).

The total project development capital cost (“CAPEX”) is MEUR 313 (23 % increase). The direct investment cost estimate for the mines, concentrator, tailings storage facilities, chemical plant and closure costs is total of MEUR 236.

The total unit operating cost for lithium hydroxide tonne based on production from Keliber ore averages EUR 4 125 which makes Keliber one of the low-cost producers of lithium hydroxide. As the Project life is extended 7 years by purchasing concentrates from third parties the operating cost (“OPEX”) will be higher. The estimated OPEX per tonne of lithium hydroxide, including the purchased concentrate, during the full life of operations is EUR 4 541.

The market demand for lithium products is strong, which is reflected in the selling price for lithium hydroxide. In the updated DFS, the sales price estimates for the battery grade lithium hydroxide were delivered by Roskill Consulting Group Ltd (“Roskill”). Roskill forecasts that annual price (in real terms) for battery grade lithium hydroxide range between US$ 12 470/t and US$ 15 742/t from 2019 to 2032. The average price being US$ 14 142.

Highlights of the updated DFS outcomes are provided below. All figures are quoted in euros (EUR, €) and represent for expected life of operations (20 years), unless otherwise specified. 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
“The demand for lithium is expected to grow very strongly, up to 17.9 % per year, until to 2032. Demand growth for battery-grade lithium hydroxide is expected to be the strongest among all the lithium products, 44.3 % per year between 2017 and 2027 and 15.4 % per year between 2027 and 2032, respectively. The increase in demand for lithium hydroxide is a result of the shift in battery cathode chemistry used by the automotive industry towards to the so-called high-nickel content chemistry. This change has been very fast. We see the European lithium value chain transforming extensively due to electrification of transport and the strong contribution of the European automotive industry in electrifying their fleets. We see signs that the chemical industry is also investing in lithium battery chemicals manufacturing in Europe, and we are entering the market at the right time to serve Europe's fast-growing markets,” says Mr. Lamberg CEO of Keliber.

Mineral resource and ore reserve estimates

The Company has continued its drilling program after the publication of the DFS in June 2018 and has drilled in total over 18 000 meters in the areas of Syväjärvi, Rapasaari and Emmes deposits as well as in Päiväneva target. The Company has not included results from these drillings in the mineral resource and ore reserve estimates of the updated DFS.

Keliber Oy's mineral resource estimates, using a 0.50 % Li₂O cut-off grade, was published on May 16, 2018. The JORC 2012 compliant measured and indicated mineral resources are 9.473 Mt grading 1.16 % Li₂O. Including the inferred mineral resources, the total mineral resources of the company are 10 million tonnes. The mineral resources have been estimated and reported in accordance with the guidelines of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves (JORC Code 2012) by the independent Competent Persons Markku Meriläinen (MAusIMM) and Pekka Loven (MAusIMM, CP).

The recoveries of the lithium hydroxide, tonnes produced, and prices of the final product were taken into account in the updated DFS. These had an effect in the cut-off grade of the open pit ore (change from 0.45 % Li₂O to 0.40 % Li₂O). Small increase in the ore reserve estimate is a result of the additional ore blocks located inside the earlier open pit block model. The DFS outlines a combined open pit and underground mining. The combined open pit and underground proven and probable reserves, using a 0.40 % Li₂O cut-off grade for open pit ore reserves and a 0.7 % Li₂O cut-off grade for underground ore reserves, are 7.459 Mt grading at 1.04 % Li₂O. Ore Reserves are included in the Mineral Resources. The ore reserve estimates have been prepared according to the guidelines of the JORC Code 2012 by Pöyry Finland Oy by competent persons under the supervision of Ville-Matti Seppä MSc (Geology), EurGeol acting as the qualified person.

“Our systematic exploration and drilling program after the June 2018, has produced good results and show the existing ore potential of the Central Ostrobothnian lithium province. We will continue our drilling program and update our mineral resource estimates later during 2019, “says the Company’s Chief Geologist Mr. Pentti Grönholm.

Lithium hydroxide process

The Company’s overall flowsheet for lithium hydroxide production comprises a conventional spodumene concentrator, concentrate converter and a soda pressure leach process. The process has been proven at pilot plant scale.

The concentrator plant will be in Kalavesi, Kaustinen, five kilometres from the municipality centre. The concentrator is designed for ore throughput of 600 000 tpa (nominal value). The chemical plant for the lithium hydroxide production will be in Kokkola Industrial Park (“KIP”). The design capacity for annual battery-grade lithium hydroxide production is 12 500 tonnes.

During the efficient and sustainable production of lithium hydroxide, two by-products are obtained, namely analcime sand in chemical plant and quartz-feldspar sand in the concentrator, which could potentially have a commercial value. Analcime sand could be used as a construction material, as a fill material at the Port of Kokkola and in water treatment. Test work related to
Redigert 21.01.2021 kl 05:02 Du må logge inn for å svare
Sailor
28.02.2019 kl 09:31 4658

Hadde vært hyggelig om en tallknuser, som f.eks. Pling, hadde omregnet dette til nåverdi pr. NOM-aksje, med best, worst og median case.
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DrHayek
28.02.2019 kl 09:45 4599

Nåverdi baseret på pre-tax NPV er 510MEUR*9,73NOK/EUR*0,185 / 130.841.772 aksjer = 7,02 kr / aksje.
NPV er diskonteret med 8%.

Best/worst/median case kommer da an på, hvor dyr finansieringen blir og hvor mye Nom blir utvannet i den proces.
Seneste kapitaltilgang i Keliber til eksisterende aksjonærer var med stor rabatt, men lad oss håpe nytt om en ipo og/eller off-take avtaler kommer frem idag.
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Pling!
28.02.2019 kl 09:58 4530

Det skal jeg gjøre Sailor, men det vil ta litt tid å gå over alle detaljene. Ovenfor står det at fotjenesten fra hydroxidesalget alene er forventet å være nesten 9000 usd pr tonn × 12500 tonn når man ser bort fra investeringskostnadene.
Kjapp utregning: (8500 x 12500 x 8 minus investeringskostnader) x 18,5% x usd kurs/antall mill aksjer
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unotert
28.02.2019 kl 10:28 4442

Helt supert dette. Jeg tippet for en tid tilbake 30% økning i NPV, det ble 76%. Vanvittig bra dette.
Redigert 21.01.2021 kl 05:02 Du må logge inn for å svare
nival
28.02.2019 kl 10:57 4358

Er vel snart tilbake til start som vanlig.
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Boss 99
28.02.2019 kl 11:01 4343

Det er vel opptil den som selger det. Denne skal jo alltid trøkkes ned gjennom halsen på den stakkar kjøperen.
Redigert 21.01.2021 kl 05:02 Du må logge inn for å svare
28.02.2019 kl 12:04 4227

Closer nok rundt 2,45 tenker jeg. Antar dere ser mønsteret: opp på nyheter, ned sporenstreks når buzzen har lagt seg. Tegner et bilde av aksjonærer som vil ut, antar dette er hopen som har kjøpt i området 2,8-3kr. Og seff den evigvarende frykten for å få en emi i fleisen med 20-40% rabatt!
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jonic
28.02.2019 kl 12:04 4224

Has the lithium chemical SUPPLY chain entered crisis mode?
https://www.linkedin.com/pulse/has-lithium-chemical-supply-chain-entered-crisis-mode-rodney-hooper/
Redigert 21.01.2021 kl 05:02 Du må logge inn for å svare
ondur
28.02.2019 kl 12:35 4155

Gode nyheter! ser boredata tar noe lengre tid...
men, betyr nok ikke noe for kursen i særlig grad oppover før NOM ledelsen får bort emisjonsfrykten de med glans presterte å re-etablere under Q4 presentasjonen.

Men dessverre, all historie tilsier at de ikke greier å gjøre noe annet enn en ny utvannende emisjon for oss trofaste. Det burde være gode muligheter for en mellomfinansiering nå! Hva gjør de 2 CFOéne til NOM for tiden? her burde de nå ligge i selene.
Redigert 21.01.2021 kl 05:02 Du må logge inn for å svare

Alt preller av så lenge denne ledelsen ikke klarer å tenke på annet enn emisjon. Totalt dødt
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Wilde
28.02.2019 kl 12:53 4094

Word on the street er at NOM skal kjøre emisjoner til og med byggestart. Men caset blir jo mer og mer solid som tiden går, så det er bare å banke inn penger i emiene.
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hadde ikke Fossum ødelagt kursen med det emi utspillet, så hadde kursen kansje vært rundtt 3,50 nå etter dagens melding fra Keliber. Utrolig ødeleggende. Nå koker denne meldingen bare bort I kålen.
Redigert 21.01.2021 kl 05:02 Du må logge inn for å svare

Er det noen som har fått et sammendrag av hva som blir sagt i pressemeldingen enda? Noe mer info om IPO eller offtake-agreement?
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jonic
28.02.2019 kl 16:46 3861

Valmet Automotive har planer på att starta en batterifabrik i Salo – fabriken beräknas kunna skapa jobb för över 300 personer

https://svenska.yle.fi/artikel/2019/02/28/valmet-automotive-har-planer-pa-att-starta-en-batterifabrik-i-salo-fabriken
Redigert 21.01.2021 kl 05:02 Du må logge inn for å svare
krissov
28.02.2019 kl 17:36 3793

Fossum er ikke tilbakestående, han legger inn noe som legger inn emi tvil om emi hver gang.
Hjalp ikke mye å klage sist. på tide å rydde opp på kontorene.....
kjempe kar, men på tide med en tupp bak. Han burde jobbe for oss.
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DrHayek
28.02.2019 kl 18:57 3700

IPO er fortsat én av de finansieringsløsninger, som de konkret vurderer på equity-delen. De forventer at 60% av finansiering kan blive gjort som lån. Noe nermere kom de ikke inn på angående finansiering. Offtake forhandlinger pågår fortsat, men de forventer at disse nu kan speede up med endelig beslutning om sluttprodukt tatt.
I tilleg forventer de ressource opdateringer i Q2/Q3.
Generel imponerende opdatering fra Keliber.
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A.Ksje
28.02.2019 kl 20:48 3590

- Vi är väldigt nöjda och vi litar på att vi med de här siffrorna får finansiering för projektet, säger Lamberg.
https://svenska.yle.fi/artikel/2019/02/28/keliber-visar-betydligt-battre-lonsamhetskalkyler-an-beraknat-litium-for-over-200
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dinglebær
28.02.2019 kl 20:52 3581

keliber : I tilleg forventer de ressource opdateringer i Q2/Q3./

Det irriterer at Nom mister oppdriften på neste emisjon ved at både engebø og Keliber dfs forsinkes.
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DrHayek
28.02.2019 kl 21:22 3536

Ressource opdateringerne forsinker ikke Keliber og den opdaterede dfs har tilføyet 215M Euro i NPV og posisjoneret sterkere til fremtiden og offtake avtaler.
Worth the wait.

Forsinkelsen på Engebø og tvivl rundt finansiering kan eg bare tilskrive meg å være irriteret over.
Kansje der er gode grunder, kansje det blir enda en emisjon på lav kurs.
Redigert 21.01.2021 kl 05:02 Du må logge inn for å svare

Finnes rett og slett ingen interesse. Lurer på hva kursen hadde vært uten emisjonsspesialisten Fossum. Alle gode nyheter preller av. Selskapet ble jo mye mer verdt I går etter keliberrapporten
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Boss 99
01.03.2019 kl 09:32 3306

Såså Vestavind . Det god med dette er at vi slipper å tenke på hva vi skal bruke alle pengen på. Uten om emi da. Hehe.
Redigert 21.01.2021 kl 05:02 Du må logge inn for å svare

Vil bare kommentere det evige emisjonsmaset på dette forum. Alle har vist i over et år at det trenges penger fra ferdigstillelse av DFS til byggestart på ca 50 mil. Nkr. Det har aldri blitt sagt eller hintet om at dette skal innkreves via emisjon. Nom stiller i dag etter siste nytt fra Keliber enda sterkere i arbeidet med å finansiere rest kostnadene opp til byggestart fra andre finansielle aktører, deriblant allerede samarbeidspartnere og banker. Dette jobbes det med. Lån på verdien i Keliber vil også være en god mulighet. Bare i Keliber har Nom aksjen en verdi på ca 7 kr per aksje. Hvis noen tror at det kommer en restemisjon på 5-10 mil på dagens kursnivå for å ferdigstille DFS så er det helt utenkelig. Det er da heller ikke bekreftet at det trengs mere penger til å ferdigstille DFS. Dette blir bra.
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Skazy
01.03.2019 kl 13:01 3086

Og...
Keliber kommer nesten garantert til å øke ressursene sine betydelig.
Det blir sagt at det finnes mange spennende områder de enda ikke har startet å undersøke.
De tallene kommer forresten ikke før om noen få måneder.

Man kan spekulere i at den finske staten kjøper hele posten til Nom i Keliber. Da snakker vi en skikkelig vitamininnsprøytning i Nom.
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DrHayek
01.03.2019 kl 13:05 3077

gruvemann:
- På Q4 blir det ikke avklaret om seneste forsinkelse gjør, at de trenger mer end tidligere meldte 50mill.
- Det blir nevnt, at de som utgangspunkt ikke ønsker seg gjeld innen byggestart.
- Det blir hverken be- eller avkræftet om finansieringen skal komme via emisjon.
Det åpner op for spekulasjoner og usikkerhet og dermed det evige emisjonsmaset på dette forum.

Enig i at fundamentielt står Nom sterkere og generelt enig i dit syn også. Min bekymring går på om nuværende aksjonærer blir mere utvannet end nødvendigt, når rettet emisjon til partnerne i Nordic Rutile gjennomføres og på en evt emisjon for å finansiere de 50+ mill.
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DrHayek
01.03.2019 kl 13:07 3074

Men manglende kommunikasjon fra Nom på planen for finansieringen kan være positiv også. Muligheter på å finansiere via Keliber posten eksempelvis.
Er fortsat optimisk eg og liker generelt utviklingen på begge prosjekter.
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Limetree
10.03.2019 kl 09:36 2520


INDUSTRIAL CLUSTER FOR BATTERY METALS GROWING IN FINLAND:
https://www.mineralsgroup.fi/blog/industrial-cluster-for-battery-metals-growing-in-finland.html

Et utdrag:
Approximately 65 percent of all cobalt comes from the Democratic Republic of the Congo. Many instances, such as Amnesty International and the Drive Sustainability alliance, have criticized problem areas in Congo.

This offers companies operating in Finland an opportunity to be profiled as a producer of sustainably sourced, mined and enriched cobalt and as a platform for high-level research.

Apart from Finland, the production of battery metals in Europe has been low. Europe is dependent on the importation of metallic raw materials. Currently, about a quarter of the world’s metal raw materials is used in the EU region, compared to only a few percent that is produced. The production figure should be increased, as metallic raw materials should be produced in a way that is responsible for the environment and society. Although the significance of recycling keeps increasing, the majority of metallic raw materials continues to come from the mines.

Cobalt in Finland is being produced in Boliden Oy’s Kevitsa and Kylylahti mines as well as Terrafame’s Sotkamo mine. These same mines also produce nickel and significant amounts of e.g. copper.

Finland has numerous identified cobalt and nickel deposits that have yet to be utilized, along with Europe’s largest cobalt reserves. Our entire battery mineral potential is not yet even known.

At the start of the year, the Geological Survey of Finland (GTK) launched a project that evaluates the occurrence of minerals required in battery production, including e.g. cobalt, lithium and flake graphite in Finland. The goal is to identify new areas where finding usable deposits is likely.

Finland does not yet have lithium production, but Keliber Oy has advanced plans on starting production from the pegmatite deposit in Kaustinen, where the aim is to enrich spodumene into lithium carbonate. Through further refinement, this will result in raw material suited for the battery industry. It appears to be possible that a significant lithium cluster will be developed in Finland.

Potential lithium deposits have also been discovered elsewhere in Finland. A significant share of the world’s cobalt is refined in Finland, although the majority of it is currently based on imported raw materials.

According to the Geological Survey of Finland, the data that has been evaluated as the best in the world is a good starting point for evaluating the mineral potential in Finland. Promising areas and deposits have been identified across the country, both in battery minerals and e.g. gold.
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Sailor
10.03.2019 kl 10:52 2475

I Finland utvikles gruveindustrien i et drivende tempo, med god støtte i befolkning og styringsapparat, samt meget god kartlegging av mineralressursene. Man ser at det skapes arbeidsplasser og utvikles bærekraftige industriprosesser, samtidig som man støtter opp under "det grønne skiftet" og gjør Europa mindre avhengig av råvarer som i større og større grad styres av Kinesiske operatører, som også driver med forurensende prosesser og utnytter barnearbeid.
I Norge har Staten stoppet kartleggingen av mineraler, et arbeid som forøvrig har gått på sparebluss i årtier, og miljøhylerne får holde på med ulovlige aksjonsformer i suveren forakt for demokratiske prosesser.
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