Bégin-Lamarche PEA Shows After-Tax NPV of $1.59 Billion First Phosphate Corp. (Ticker: PHOS.c or FRSPF for US investors), a mineral development company focused on high-purity phosphate for the LFP battery industry, recently shared positive results from its Preliminary Economic Assessment (PEA) for the Bgin-Lamarche Property in Saguenay-Lac-Saint-Jean, Quebec.
Key Project Highlights:
-
Annual Production: 900,000 tonnes of phosphate concentrate (40% P2O5) and 380,000 tonnes of magnetite concentrate (92% Fe2O3) over a 23-year mine life.
-
Financial Metrics:
-
Pre-tax IRR: 37.1% with a pre-tax NPV of $2.1 billion (8% discount rate).
-
After-tax IRR: 33.0% with an after-tax NPV of $1.59 billion.
-
Payback Period: 2.9 years after production start, supported by $700 million after-tax cash flow in years 1–3.
-
Initial Capex: $675 million, benefiting from nearby infrastructure including paved roads, power access, and proximity to the Port of Saguenay (85 km).
The project’s mine plan involves open-pit mining with conventional methods, processing 150.5 Mt of plant feed averaging 5.76% P2O5 and 10.32% Fe2O3. A strip ratio of 1.5:1 is anticipated, with backfilling of waste rock to support progressive site restoration.
Extensive metallurgical testing by SGS has confirmed high recovery rates for phosphate and magnetite concentrates.
CEO John Passalacqua emphasized the robust project economics, stating, “Existing local infrastructure keeps our capex low, our mine size controlled, and our mine economics robust. Our internal Pre-Feasibility work is also near completion, and we are now in a position to determine the timing on our Feasibility Study.”
Environmental and Indigenous Considerations:
-
The clean igneous phosphate deposit reduces environmental risks like acid drainage, and dry stack tailings will further minimize environmental impacts.
-
First Phosphate has a formal collaboration agreement with the Pekuakamiulnuatsh Takuhikan First Nation, enabling financial participation and involvement in related downstream facilities.
This PEA positions First Phosphate to become a key supplier of high-purity phosphate concentrate for North American LFP battery producers.
Full news here: https://firstphosphate.com/first-phosphate-announces-positive-results-of-preliminary-economic-assessment-at-its-begin-lamarche-property-in-saguenay-lac-saint-jean-quebec-canada/
Posted on behalf of First Phosphate Corp.