Kindersley Lithium Project PFS: C$125M NPV, 10.8% IRR
Grounded Lithium Corp.'s Kindersley Lithium Project in Canada, Saskatchewan has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of C$125M, an after-tax IRR of 10.8%, and initial capital of C$603M.
Grounded Lithium Corp.'s Kindersley Lithium Project has reported Pre-Feasibility Study (PFS) results for the lithium project in Canada, Saskatchewan. The study headlines an after-tax net present value of C$125M at a 8% discount rate. It reflects Grounded Lithium Corp.'s (GRD.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$125M using a 8% discount rate. After-tax IRR is 10.8%. Initial capital expenditure is estimated at C$603M. The study models a payback period of 9.7 years. All-in sustaining costs are pegged at 8581 C$/tonne LCE (unit OPEX). Economics are based on Li₂CO₃ Commodity Price 25,000 USD/tonne; Foreign Exchange Rate 0.72 CAD/USD.
Production and mine plan. The project envisions a brined dle (adsorption); 45 production wells, 8 injection wells, 3 disposal wells operation. Average annual production is approximately 3200 t LCE/yr. Average head grade is 65.0 mg/L Li (P&P brine average). Metallurgical recovery averages 87%.
Resources and ownership. Royalties and streams: Total Royalties Paid (LOM) C$181.7 million (US$130.8 million); Denison has option to earn up to 75% working interest by funding up to $15,150,000.
These figures are extracted from Grounded Lithium Corp.'s technical disclosures and reflect the most recent PFS on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 34.5 Mm3 (217.0 MMbbl) | 73.8 mg/L Li | 2,545 tonnes elemental Li (2,806 Ton); 11,787 tonnes saleable LCE (12,993 Ton) |
| Probable | 239.4 Mm3 (1,506.0 MMbbl) | 63.8 mg/L Li | 15,269 tonnes elemental Li (16,831 Ton); 70,712 tonnes saleable LCE (77,947 Ton) |
| Proven & Probable | 273.9 Mm3 (1,723.0 MMbbl) | 65.0 mg/L Li | 17,814 tonnes elemental Li (19,637 Ton); 82,499 tonnes saleable LCE (90,940 Ton) |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 1,499 Mm3 (9,429 MMbbl) | 64.5 mg/L Li | 96,635 tonnes elemental Li (106,522 Ton); 514,000 tonnes LCE (566,588 Ton) |
| Indicated | 1,264 Mm3 (7,951 MMbbl) | 64.9 mg/L Li | 82,069 tonnes elemental Li (90,466 Ton); 437,000 tonnes LCE (481,710 Ton) |
| Measured & Indicated | 2,763 Mm3 (17,379 MMbbl) | 64.7 mg/L Li | 178,704 tonnes elemental Li (196,987 Ton); 951,000 tonnes LCE (1,048,298 Ton) |
| Inferred | 7,751 Mm3 (48,754 MMbbl) | 64.1 mg/L Li | 496,862 tonnes elemental Li (547,696 Ton); 2,645,000 tonnes LCE (2,915,613 Ton) |
Our Analysis
- IRR after-tax
- 10.8%
higher than 0% of 23 projects we track
- NPV after-tax
- C$125M
higher than 0% of 26 projects we track
- Initial capex
- C$603M
482% of NPV
costlier than 24% of 25 projects we track
- Payback
- 9.7yrs
slower than 100% of 17 projects we track
- Discount rate
- 8%
- Study price assumption
- Li₂CO₃ Commodity Price 25,000 USD/tonne; Foreign Exchange Rate 0.72 CAD/USD
A 10.8% after-tax IRR is not a financing outcome; it is a signal that this project, as currently scoped, does not clear the bar a lender or a partner would set. Developers typically need roughly 15% after-tax to attract project finance, and 20% or more where the developer is a junior with little else in the portfolio to spread risk. This company fits that second description, and the ranking confirms it: the return sits below all 23 lithium projects we track. The 9.7-year payback is long against the same peer set, and the after-tax NPV of C$125M ranks below all 26 projects in our coverage. The 8% discount rate is a reporting convention, not a hurdle, and it is not what decides this.
The funding arithmetic is the harder problem. Initial capex of C$603M is 482% of NPV, and against a US$2M market cap the build is roughly 249.8 times the company's entire equity value. A company cannot quietly finance a construction bill of that scale; there is no version of this where the balance sheet carries it. The C$125M NPV, at roughly 51.8 times market cap, can be read two ways: as an asset the market has not recognised, or as the market pricing in the dilution, partnering or permitting risk that a nano-cap with three projects and one development asset genuinely carries. The second read is at least as plausible as the first.
Confidence in the numbers themselves is limited by stage. This is a pre-feasibility study, which narrows estimates to roughly a plus or minus 25% band but is not a build decision. Saskatchewan is a mining-friendly jurisdiction, which helps on permitting and is not the constraint here. The study's US$25,000 per tonne lithium carbonate assumption is the lever that matters most, and it is an assumption rather than a market observation. What would have to change is straightforward: a higher realised price, a materially lower capex, or a partner willing to fund the build. The single question is whether any of those arrive before the company runs out of the equity value it would need to dilute.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.
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