General Discussion Topics, page-108547

21 June 2023STANDALONE LITHIUM CARBONATE PLANT NPV OF A$3.2B AT NAL PRODUCES A COMBINED NAL NPV OF A$5.4BHighlightsPositive preliminary technical study for lithium carbonate production at North American Lithium (NAL) operation in Québec, with fully integrated pre‐tax NAL NPV now exceeding A$5 billion, including NAL DFS (refer ASX release 14 April 2023)Standalone estimated pre‐tax net present value (NPV) (8% discount) for lithium carbonate production of A$3.2B (pre‐tax); standalone carbonate plant pre‐tax IRR of 60%Total earnings before interest, tax, depreciation, and amortisation (EBITDA) over 16‐year project life for standalone carbonate plant of A$7.5B, based on life of plant production of 372,000 tonnes lithium carbonateSayona to advance definitive technical study for lithium carbonate plant’s restart, targeting production as early as 2026, amid focus on North American supply chain for battery/EV sector.North American lithium producer Sayona Mining Limited (“Sayona”) (ASX:SYA; OTCQB:SYAXF)announced today a positive preliminary carbonate technical study (preliminary study) for its flagship North American Lithium (NAL) Project in Québec, Canada, confirming the benefits of moving into downstream processing. NAL is a subsidiary of Sayona Québec, owned by Sayona (75%) and Piedmont Lithium (ASXLL 25%).Study highlights included an estimated, pre‐tax NPV (8% discount) for the standalone carbonate plant of A$3.2 billion, with a pre‐tax IRR of 60%. Total earnings before interest, tax, depreciation, and amortisation (EBITDA) over the 16‐year project life of the carbonate plant amount to A$7.5 billion (exchange rate C$1 = A$1.10, as at 20 June 2023).Based on the positive study, Sayona now plans to commission a definitive technical study for the production of battery‐grade lithium carbonate (Li2CO3) from spodumene (lithium) concentrate. Subject to the study’s timing and outcomes, the carbonate plant could be commissioned as early as 2026.