Nevada North Lithium Project (NNLP) PFS: $9.81B NPV, 23.6% IRR
Surge Battery Metals Inc.'s Nevada North Lithium Project (NNLP) in Elko County, Nevada, USA has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $9.81B, an after-tax IRR of 23.6%, and initial capital of $2.77B. The mine plan runs 42 years at about 92250 t LCE per year.
Surge Battery Metals Inc.'s Nevada North Lithium Project (NNLP) has reported Pre-Feasibility Study (PFS) results for the lithium project in Elko County, Nevada, USA. The study headlines an after-tax net present value of $9.81B at a 8% discount rate. It reflects Surge Battery Metals Inc.'s (NILI.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $9.81B using a 8% discount rate. After-tax IRR is 23.6%. Initial capital expenditure is estimated at $2.77B, with life-of-mine sustaining capital of $1.65B. The study models a payback period of 4.2 years. Economics are based on Base Case: US$24,000/t LCE.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 42 years. Average annual production is approximately 92250 t LCE. Average head grade is 3,928 ppm Li (LOM); ~4,340 ppm Li over first 10 years. Metallurgical recovery averages 84.9%. The open-pit strip ratio is 0.88:1 (w:o).
Resources and ownership. The company holds a 67.5% interest in the project.
These figures are extracted from Surge Battery Metals Inc.'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 & Probable | 218.3 Mt | 3,928 ppm Li | 4.56 Mt LCE |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | — | 3,007 ppm Li | 10.5 Mt LCE |
| Inferred | — | 3,820 ppm Li | 3.1 Mt LCE |
Our Analysis
- IRR after-tax
- 23.6%
higher than 28% of 18 projects we track
- NPV after-tax
- $9.81B
higher than 100% of 21 projects we track
- Initial capex
- $2.77B
28% of NPV
costlier than 100% of 20 projects we track
- Payback
- 4.2yrs
slower than 75% of 12 projects we track
- Mine life
- 42yrs
- Discount rate
- 8%
- Study price assumption
- Base Case: US$24,000/t LCE
A US$2.77 billion build against a US$174 million market capitalisation is the fact that governs everything else here. The capex is roughly 15.9 times the company's entire equity value, and this is the only project we track for it. No plausible equity raise closes that gap without handing the asset to new money: a strategic partner, a sovereign or state-linked fund, an offtake-backed consortium, or a full sale of the project. Existing holders should read the headline numbers as an option on someone else writing the cheque, not as a claim on the NPV.
That NPV is US$9.81 billion after tax, ranking above every one of the 21 lithium projects we track, and capex is a modest 28% of it. The build is large in absolute terms but not disproportionate to the resource. The catch is the return attached to it: a 23.6% after-tax IRR sits in the lower half of the 18 lithium projects we track, above only 28% of them. Against the roughly 15% developers need for project finance, and the 20%-plus a single-asset junior must show, it clears the bar but without much room. Payback of 4.2 years is longer than 75% of the 12 projects we track, which stretches the period before cash returns and makes the funding structure more, not less, important.
Two things soften the picture. Elko County, Nevada puts the asset in a mining-friendly US jurisdiction, which widens the pool of potential financiers. And the 42-year mine life gives a partner time to earn back a large commitment. The economics rest on a US$24,000/t LCE assumption, so returns move with realised pricing, and this is a pre-feasibility study: a plus or minus 25% band on the estimate, not yet a build decision. The question that decides it is whether a cheque this size can be written on terms that leave anything for the current register.
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.