Surge Battery Metals NNLP Lithium Project (adjacent comparable) PFS: $9.81B NPV, 23.6% IRR
Peloton Minerals Corp.'s Surge Battery Metals NNLP Lithium Project (adjacent comparable) in 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 per year.
Peloton Minerals Corp.'s Surge Battery Metals NNLP Lithium Project (adjacent comparable) has reported Pre-Feasibility Study (PFS) results for the lithium project in Nevada, USA. The study headlines an after-tax net present value of $9.81B at a 8% discount rate. It reflects Peloton Minerals Corp.'s (PMC.CN) 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. The study models a payback period of 4.2 years. All-in sustaining costs are pegged at 4719 USD/t LCE. Economics are based on LCE Price Forecast $24,000 p/t.
Production and mine plan. The project envisions an open pit, acid leach operation. Life of mine is 42 years. Average annual production is approximately 92250 t/LCE per year. Average head grade is 3,007 ppm Li. Metallurgical recovery averages 84.9%.
These figures are extracted from Peloton Minerals 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 |
|---|---|---|---|
| Measured & Indicated | — | 3,007 ppm Li | 10.51 Mt LCE |
Our Analysis
- IRR after-tax
- 23.6%
higher than 38% of 21 projects we track
- NPV after-tax
- $9.81B
higher than 100% of 24 projects we track
- Initial capex
- $2.77B
28% of NPV
costlier than 96% of 23 projects we track
- Payback
- 4.2yrs
slower than 73% of 15 projects we track
- Mine life
- 42yrs
- Discount rate
- 8%
- Study price assumption
- LCE Price Forecast $24,000 p/t
The economics here are almost beside the point. The build is $2.77B against a company worth roughly US$10M, a nano-cap whose entire equity is a rounding error next to the cheque this project needs. That ratio is the story: no conventional project finance package closes on those terms, because the sponsor cannot fund an overrun, cannot post the completion support lenders demand, and brings two other projects but no balance sheet. The realistic paths are a partner or offtaker carrying the capital, a joint venture that hands over a large share of the asset, or serial equity issuance that leaves existing holders with a sliver. Any of those can get this built; none of them preserves the current ownership.
The underlying numbers are genuinely large. After-tax NPV of $9.81B ranks above every one of the 24 lithium projects we track, and the 23.6% after-tax IRR sits above 38% of the 21 projects we compare. That IRR clears the roughly 15% developers typically need for project finance and the 20%-plus a higher-risk junior with little else in the portfolio should be held to, so the return is adequate rather than exceptional. Payback of 4.2 years is on the long side, slower than 73% of the 15 projects we track, which matters when the capital has to be raised up front. Initial capex at 28% of NPV is genuinely light relative to the peer set, but that is a statement about the orebody, not about who pays.
Two things temper the headline. This is a pre-feasibility study, an estimate narrowed to roughly a plus or minus 25% band and not yet a build decision, and the returns rest on a $24,000 per tonne LCE assumption that no live price is available to test. Nevada is a favourable jurisdiction, and 42 years of mine life gives a partner time to earn back. The question that decides this is not whether the project works on paper, but who writes the $2.77B cheque, and what they take for it.
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.