Kindersley Lithium Project (KLP) PFS: C$125M NPV, 11% IRR
Grounded Lithium Corp.'s Kindersley Lithium Project (KLP) in Canada, Saskatchewan (Kindersley area) has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of C$125M and an after-tax IRR of 11%. The proposed mine plan runs 25 years.
Grounded Lithium Corp.'s Kindersley Lithium Project (KLP) has reported Pre-Feasibility Study (PFS) results for the lithium (brine, lce) project in Canada, Saskatchewan (Kindersley area). 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 11%.
Production and mine plan. The project envisions a brine (well-based, dle) operation. Life of mine is 25 years.
Resources and ownership. Mineral reserves: Combined Mineral Reserves and Measured and Indicated Resources of approximately 1.0 million metric tonnes LCE across KLP. Mineral resources: Combined Mineral Reserves and Measured and Indicated Resources of approximately 1.0 million metric tonnes LCE across KLP.
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.
Our Analysis
- IRR after-tax
- 11%
higher than 2% of 400 projects we track
- NPV after-tax
- C$125M
higher than 17% of 574 projects we track
- Mine life
- 25yrs
- Discount rate
- 8%
An 11% after-tax return does not clear the bar that project lenders actually apply. Developers typically need roughly 15% to attract finance, and 20%-plus where the developer is a junior with little else to lean on, which fits this company. At 11%, ranking above just 2% of the 400 projects we track, this is bottom-quartile economics: the sort of number that gets a study shelved rather than funded.
The scale problem compounds it. A US$2M nano-cap is proposing to build a 25-year Saskatchewan lithium brine operation whose after-tax NPV of C$125M is roughly 51.8x its own market value. That gap can be read two ways: the market simply hasn't caught on, or it is skeptical about financing, dilution, permitting and execution. With equity this thin, the second read is the harder one to dismiss. This is one of four projects the company carries, which spreads attention and capital further, not less. The PFS stage matters too: a pre-feasibility narrows the estimate to roughly plus or minus 25%, but it is not a build decision, and the costs and recoveries will move before any of this is bankable.
What would have to change is straightforward to name and hard to deliver: a materially higher lithium price than the study assumes, a lower capex, or a partner willing to carry the build. Saskatchewan is a mining-friendly jurisdiction, which helps at the margin, but it does not fix a return below the financing threshold. The deciding question is whether a partner or a re-scoped, cheaper build can lift the return toward the mid-teens before the company's cash and credibility run out.
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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