First Phosphate PEA projects $795M in pre-tax NPV

First Phosphate (CSE: PHOS; OTC Pink: FRSPF; FSE: KD0) says the preliminary economic assessment (PEA) for its Lac à l'Orignal property near Saguenay, Que., indicates a viable opportunity for open pit mining and production of phosphate concentrate, as well as the recovery of magnetite and ilmenite concentrates.

Highlights of the assessment include an estimated average annual production of 425,000 tonnes of phosphate concentrate with a content of over 40%. Additionally, the project is expected to yield 280,000 tonnes of magnetite and 97,000 tonnes of ilmenite over its 14.2-year mine life.

The PEA includes a pre-tax internal rate of return (IRR) of 21.7%, a pre-tax net present value (NPV) of $795 million at a 5% discount rate, and an after-tax IRR of 17.2% and NPV of $511 million. Preproduction capital is estimated at $550 million, with an estimated payback period is 4.9 years from the start of production, with an after-tax cash flow of $567 million in the first five years.

First Phosphate already has a memorandum of understanding with Prayon Technologies of Belgium to take up to 400,000 tonnes of phosphate concentrate annually. Additionally, the company has secured a long-term purified phosphoric acid toll processing agreement.

The project has access to nearby road infrastructure, an electrical power line, and the year-round accessible Port of Saguenay.

For more information, visit www.FirstPhosphate.com.