Proactive - Interviews for investors

Lithium Universe’s Bécancour lithium refinery PFS shows strong economic prospects

Episode Summary

Lithium Universe Ltd (ASX:LU7) CEO Alex Hanly joins Proactive’s Tylah Tully to discuss the company’s Preliminary Feasibility Study (PFS) for the Bécancour Lithium Carbonate Refinery project in Québec, Canada. The study confirms the viability of the lithium conversion project, even in a low-pricing environment. The refinery aims to produce environmentally friendly, battery-grade lithium carbonate with an annual capacity of 18,270 tonnes, drawing on the Jiangsu processing model. The company will source spodumene feedstock from both domestic and international markets, aligning with its goal to contribute to the North Atlantic lithium supply chain. The project presents strong financial indicators, with a pre-tax Net Present Value (NPV) of around US$779 million and an Internal Rate of Return (IRR) of 23.5%. The estimated payback period is 3.5 years. Annual revenue is projected to be around US$383 million, with costs of US$236 million, resulting in an EBITDA of some US$147 million and a gross margin of 38%. Post-tax NPV is estimated at US$501 million. The capital cost for the project is US$494 million, including a US$68 million contingency. Lithium Universe plans to secure strategic partners for project funding and aims to position Québec as a key lithium conversion hub. #ProactiveInvestors #ASX #LithiumUniverse, #BecancourRefinery, #LithiumCarbonate, #GreenEnergy, #BatteryGradeLithium, #Sustainability, #QuebecLithium, #LithiumConversion, #NorthAtlanticSupplyChain, #EVBatteries, #CleanTech, #LithiumMining, #ASXLU7, #RefineryProject, #JiangsuModel, #FinancialViability, #NetPresentValue, #LithiumSupplyGap, #SpodumeneFeedstock, #OEMPartnerships