Iconic Minerals Ltd V.ICM

Bonnie Claire PEA Released

[MuttleyKnows]

The PEA has just been released.  Looks good.  The economics work for this project. USD1.5 billion NPV.

Results for the Project are:
• Average annual production of 32.3 million kilograms (kg) (or 32,300 tonnes) of lithium carbonate equivalent (LCE)
• Cash operating cost of $5,974/tonne LCE
• All-in sustaining cost of $6,057/tonne LCE
• A $1.5 billion after-tax Net Present Value (NPV) at an 8% discount rate
• A 23.8% after-tax Internal Rate of Return (IRR)
• Payback period of 6.7 years
• Break-even price (0% IRR) of $6,545/tonne LCE

Here is the link:

Preliminary Economic Assessment NI 43-101 Technical Report (iconicminerals.com)

[donteatbeyond2]

ICM will likely own 100% of Bonnie Claire since Nevada Lithium is broke and is desperate to raise money. From the re-filed PEA:   "At present, the Bonnie Claire project is operated as an unincorporated joint venture between the Companies for an interim period prior to the formalization of operations through a joint venture agreement, which is in negotiations." "If

[MuttleyKnows]

I understand what you saying but I believe that the path of least resistance is to merge the two companies.  Nevada will be able to fund Phase 1 when push comes to shove. More importantly, it is this strange corporate structure that would make a deal with a off take partner difficult.  Resolve this and a partner or partners should hopefully come quickly after a merger.

[IvanRo]

Agree with a merger on Nevada. Interesting that they are pricing the Lithium Carbonate Equivalent at $13,400/t... Noting, that the product will be battery grade per the PEA. Also, PEAs are notoriously out of kilter with so would expect a cost variance of about plus 20% which doesn't help the payback period but it does have a very very long mine life (which would benefit a larger miner).