Kwyjibo Rare Earth Project PEA: C$1.40B NPV, 35.4% IRR
Consolidated Lithium Metals Inc.'s Kwyjibo Rare Earth Project in Quebec, Canada (Côte-Nord / Sheldrake) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$1.40B, an after-tax IRR of 35.4%, and initial capital of C$881M. The mine plan runs 10 years at about 9.8 kt/y TREO per year.
Consolidated Lithium Metals Inc.'s Kwyjibo Rare Earth Project has reported Preliminary Economic Assessment (PEA) results for the rare earth elements (treo) project in Quebec, Canada (Côte-Nord / Sheldrake). The study headlines an after-tax net present value of C$1.40B at a 8% discount rate. It reflects Consolidated Lithium Metals Inc.'s (CLM.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$1.40B using a 8% discount rate. After-tax IRR is 35.4%. Initial capital expenditure is estimated at C$881M, with life-of-mine sustaining capital of C$25M. The study models a payback period of 2 years. Economics are based on Rare Earth Oxide price 79.58 CAD $/kg TREO (base case, basket).
Production and mine plan. The project envisions an underground operation. Life of mine is 10 years. Average annual production is approximately 9.8 kt/y TREO. Average head grade is 3.35% TREO (LOM average). Metallurgical recovery averages 75%.
These figures are extracted from Consolidated Lithium Metals Inc.'s technical disclosures and reflect the most recent PEA 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 |
|---|---|---|---|
| Measured | 3,138 kt | 2.37% TREO | — |
| Indicated | 5,342 kt | 2.49% TREO | — |
| Measured & Indicated | 8,480 kt | 2.44% TREO | — |
| Inferred | 1,825 kt | 3.27% TREO | — |
| Measured | 3,138 kt | 0.48% Nd2O3+Pr2O3, 0.013% Tb2O3, 0.08% Dy2O3 | — |
Our Analysis
- IRR after-tax
- 35.4%
higher than 61% of 369 projects we track
- NPV after-tax
- C$1.40B
higher than 73% of 512 projects we track
- Initial capex
- C$881M
63% of NPV
costlier than 75% of 481 projects we track
- Payback
- 2yrs
slower than 36% of 297 projects we track
- Mine life
- 10yrs
- Discount rate
- 8%
- Study price assumption
- Rare Earth Oxide price 79.58 CAD $/kg TREO (base case, basket)
A ten-year mine life is the first thing to register here: this is not a generational asset, and the cash flows have to be judged over a single, fairly compressed window. Against the projects we track, that shows up in the returns profile. The 35.4% after-tax IRR sits above 61% of the 369 projects in our database, and the C$1.40B after-tax NPV ranks above 73% of 512. The two-year payback is quicker than 64% of the 297 projects we track. Solidly upper-half across three separate measures, without leading any of them.
The constraint that matters most is funding. Initial capex of C$881M equals 63% of NPV, and only 25% of the 481 projects we track are more capital-intensive on that measure. More pointedly, this is the only project we track for this company, so there is no portfolio cash flow to lean on and no diversification to absorb an overrun. The IRR clears the roughly 15% threshold developers typically need for project finance, and the 20%-plus band that applies to a higher-risk junior with little else in the portfolio, but that clearance is thin comfort when the build is this large relative to the enterprise behind it. The 8% discount rate is a reporting convention and tells us nothing here.
Two caveats sit on top of that. This is a scoping-level PEA: it may lean on inferred material, and the capital estimate carries a plus or minus 50% band, which around C$881M is an enormous spread. And the economics rest on a basket price of C$79.58/kg TREO, a single assumption with no live reference point to test it against, in a commodity where basket composition and realised pricing are notoriously hard to pin down. The question that decides this project is whether a company with one asset can fund a build worth 63% of its NPV without diluting away the returns the study promises.
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.