Kindersley Lithium Project (KLP) – Phase 1 PFS: $90M NPV, 10.8% IRR
Grounded Lithium Corp.'s Kindersley Lithium Project (KLP) – Phase 1 in Saskatchewan, Canada (near Kindersley) has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $90M and an after-tax IRR of 10.8%. The mine plan runs 26 years at about 3173 t LCE/yr (average) per year.
Grounded Lithium Corp.'s Kindersley Lithium Project (KLP) – Phase 1 has reported Pre-Feasibility Study (PFS) results for the lithium (li2co3 / lce) project in Saskatchewan, Canada (near Kindersley). The study headlines an after-tax net present value of $90M 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 $90M using a 8% discount rate. After-tax IRR is 10.8%. The study models a payback period of 9.7 years. Economics are based on Li2CO3 US$25,000/tonne; FX 0.72 USD/CAD.
Production and mine plan. The project envisions an in-situ brine extraction (wellfield, dle) operation. Life of mine is 26 years. Average annual production is approximately 3173 t LCE/yr (average). Average head grade is 64.7 mg/L Li (M&I in-situ); 73.8 mg/L Li (Proven reserves brine). Metallurgical recovery averages 87%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Total royalties paid LOM C$181.7 million (US$130.8 million).
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 produced brine volume (217.0 MMbbl) | 73.8 mg/L Li | 2,545 t Li; 11,787 t saleable LCE (12,993 Ton) |
| Probable | 239.4 Mm3 produced brine volume (1,506.0 MMbbl) | — | 70,712 t saleable LCE (77,947 Ton); 15,629 t Li |
| Proven & Probable | — | — | 82,499 t saleable LCE (90,940 Ton) |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 1,499 Mm3 brine pore volume (9,429 MMbbl) | 64.5 mg/L Li | 96,635 t Li; 514,000 t LCE (566,588 Ton) |
| Indicated | 1,264 Mm3 brine pore volume (7,951 MMbbl) | 64.9 mg/L Li | 82,069 t Li; 437,000 t LCE (481,710 Ton) |
| Measured & Indicated | 2,763 Mm3 brine pore volume (17,379 MMbbl) | 64.7 mg/L Li | 178,704 t Li; 951,000 t LCE (1,048,298 Ton) |
| Inferred | 7,751 Mm3 brine pore volume (48,754 MMbbl) | 64.1 mg/L Li | 496,862 t Li; 2,645,000 t LCE (2,915,613 Ton) |
Our Analysis
- IRR after-tax
- 10.8%
higher than 2% of 400 projects we track
- NPV after-tax
- $90M
higher than 10% of 574 projects we track
- Payback
- 9.7yrs
slower than 100% of 329 projects we track
- Mine life
- 26yrs
- Discount rate
- 8%
- Study price assumption
- Li2CO3 US$25,000/tonne; FX 0.72 USD/CAD
A 10.8% after-tax IRR does not clear the bar that matters. Developers typically need roughly 15% to attract project finance, and a junior with little else in the portfolio needs 20%+ to get a build away. This sits in the bottom quartile of the 400 projects we track, and a 9.7-year payback is longer than every one of the 329 projects we compare against. On these numbers the project does not finance itself, and the question is not how it ranks but what would have to change for it to be built at all.
The scale problem is starker than the return problem. After-tax NPV of $90M against a US$2M market cap is a gap of roughly 51x, and a gap that wide cuts both ways: it can mean the asset is unrecognised, or that the market is discounting financing, dilution, permitting or commodity risk it can see more clearly than the study does. A nano-cap cannot quietly fund a development build from its own balance sheet. Saskatchewan is about as mining-friendly a jurisdiction as exists, and that is genuine credit, but it does not solve the funding arithmetic. The PFS stage matters too: a plus or minus 25% band around the estimate is not a build decision, and the 26-year mine life only pays off if the early years clear the hurdle.
What would move the needle is higher realised lithium carbonate prices than the study's US$25,000/tonne assumption, a lower capex, or a partner to carry the build. The single question that decides this project is whether a fundable structure, with a partner or a revised scope, can lift returns toward the 15-20% a financier will demand. Until that is answered, the NPV is a paper number.
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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