Uatnan Mining Project (Lac Guéret graphite deposit) PEA: C$2.17B NPV, 25.9% IRR
Nouveau Monde Graphite Inc.'s Uatnan Mining Project (Lac Guéret graphite deposit) in Québec, Canada (Rivière-aux-Outardes, Côte-Nord region, Nitassinan) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$2.17B, an after-tax IRR of 25.9%, and initial capital of C$1.42B. The mine plan runs 24 years at about 500000 t graphite concentrate per year.
Nouveau Monde Graphite Inc.'s Uatnan Mining Project (Lac Guéret graphite deposit) has reported Preliminary Economic Assessment (PEA) results for the graphite (natural flake, cg) project in Québec, Canada (Rivière-aux-Outardes, Côte-Nord region, Nitassinan). The study headlines an after-tax net present value of C$2.17B at a 8% discount rate. It reflects Nouveau Monde Graphite Inc.'s (NOU.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$2.17B using a 8% discount rate. After-tax IRR is 25.9%. Initial capital expenditure is estimated at C$1.42B, with life-of-mine sustaining capital of C$147M. The study models a payback period of 3.2 years. Economics are based on Concentrate selling price US$1,100/tonne; pit-shell concentrate price C$1,500/t.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 24 years. Average annual production is approximately 500000 t graphite concentrate. Average head grade is 17.5% Cg (LOM average). Metallurgical recovery averages 85%. The open-pit strip ratio is 1.3:1.
These figures are extracted from Nouveau Monde Graphite 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 | 15.65 Mt | 15.2% Cg | 2.38 Mt Cg |
| Measured | 3.35 Mt | 30.6% Cg | 1.02 Mt Cg |
| Total Measured | 19.02 Mt | 17.9% Cg | 3.40 Mt Cg |
| Indicated | 40.29 Mt | 14.6% Cg | 5.89 Mt Cg |
| Indicated | 6.33 Mt | 31.6% Cg | 2.00 Mt Cg |
| Total Indicated | 46.62 Mt | 16.9% Cg | 7.89 Mt Cg |
| Indicated + Measured (5.75% < Cg < 25%) | 55.94 Mt | 14.8% Cg | 8.27 Mt Cg |
| Indicated + Measured (Cg > 25%) | 9.70 Mt | 31.2% Cg | 3.03 Mt Cg |
| Total Measured + Indicated | 65.64 Mt | 17.2% Cg | 11.30 Mt Cg |
| Inferred | 15.35 Mt | 14.9% Cg | 2.28 Mt Cg |
| Inferred | 2.47 Mt | 31.8% Cg | 0.79 Mt Cg |
| Total Inferred | 17.82 Mt | 17.2% Cg | 3.07 Mt Cg |
Our Analysis
- IRR after-tax
- 25.9%
higher than 38% of 355 projects we track
- NPV after-tax
- C$2.17B
higher than 85% of 454 projects we track
- Initial capex
- C$1.42B
65% of NPV
costlier than 87% of 453 projects we track
- Payback
- 3.2yrs
slower than 63% of 288 projects we track
- Mine life
- 24yrs
- Discount rate
- 8%
- Study price assumption
- Concentrate selling price US$1,100/tonne; pit-shell concentrate price C$1,500/t
Initial capital of C$1.42B is well above the company's market capitalisation of about US$452M, which frames the financing and dilution risk. At 25.9% after-tax IRR, the project ranks higher than 38% of the 355 projects we track across all commodities, and comfortably clears the ~15% after-tax return developers typically need to finance a build. Capital runs to about 65% of project NPV, making it moderately capital-intensive, lower than 13% of the 453 projects we track across all commodities. It is one of 2 projects we track for this company, a small-cap developer. These are scoping-level numbers: a PEA is preliminary, may include inferred resources, and its capital estimate typically carries a plus or minus 50% band. The project sits in Québec, Canada (Rivière-aux-Outardes, Côte-Nord region, Nitassinan), a factor in its overall risk profile.
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.