NOA Lithium Announces Positive Preliminary Economic Assessment Results for Rio Grande Project
Executive Summary
- NOA Lithium Brines released a positive PEA for its Rio Grande project, projecting up to 40,000 tpa of battery‑grade lithium carbonate with strong economics.
- Base case (20,000 tpa) shows pre‑tax NPV of $2.07 bn, IRR of 27.3% and a 3.3‑year payback; expansion to 40,000 tpa lifts pre‑tax NPV to $3.78 bn and IRR to 28.1%.
- Initial CAPEX is estimated at $706 m for Phase 1 and an additional $640 m for Phase 2, with OPEX of ~$5,900/tonne (Phase 1) and ~$5,550/tonne (Phase 2).
Key Details
- Project Scope:
- Phase 1 – 20,000 tpa lithium carbonate (LCE) produced via conventional evaporation ponds.
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Phase 2 – optional additional 20,000 tpa, bringing total capacity to 40,000 tpa.
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Economic Highlights – Base Case (20,000 tpa):
- Pre‑tax NPV (8% discount): $2.065 bn
- Post‑tax NPV (8% discount): $1.276 bn
- Pre‑tax IRR: 27.3% | Post‑tax IRR: 22.6%
- Payback period: 3.3 yr (pre‑tax), 3.4 yr (post‑tax)
- Average annual EBITDA: $317 m
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OPEX (full production): $5,897/tonne LCE
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Economic Highlights – Expansion Case (40,000 tpa):
- Pre‑tax NPV (8% discount): $3.776 bn
- Post‑tax NPV (8% discount): $2.341 bn
- Pre‑tax IRR: 28.1% | Post‑tax IRR: 23.3%
- Payback period: 4.6 yr (pre‑tax), 5.0 yr (post‑tax)
- Average annual EBITDA: $613 m
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OPEX (full production): $5,552/tonne LCE
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Capital Expenditures:
- Phase 1 CAPEX: $706.2 m (including $163 m contingency).
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Phase 2 incremental CAPEX: $639.7 m (total for 40,000 tpa = $1.3459 bn).
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Operating Cost Breakdown – Phase 1:
- Total annual OPEX: $117.9 m → $5,897/tonne.
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Major cost components: reagents 51%, labour 16%, energy 12%.
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Operating Cost Breakdown – Phase 2 (expanded):
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Total annual OPEX: $222.1 m → $5,552/tonne.
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Technical Risk & Development:
- Uses proven evaporation‑pond technology already deployed in the region.
- Brine lithium concentration > 520 mg/L supports low‑risk processing.
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Staged development reduces execution risk and allows CAPEX deferral.
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Alternative Production Option:
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Preliminary assessment of lithium chloride route could cut CAPEX by 30‑35% and OPEX by 35‑40% versus base case.
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Potential Upside – Argentine RIGI Incentive Regime (not included in base case):
- If granted, pre‑tax NPV could rise to $2.22 bn (20 k tpa) or $4.08 bn (40 k tpa).
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Corresponding IRR improvements of ~1% points.
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Resource Base:
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Measured + Indicated: 2.66 Mt LCE; Inferred: 2.04 Mt LCE (July 2024 resource estimate).
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Next Steps:
- Advance to a Pre‑Feasibility Study (PFS) with additional drilling, water balance studies, hydrogeological modelling, lab tests and pilot plant work.
Notable Quotes
“The results of this PEA validate our confidence in the potential of the Rio Grande Project… Our next milestone is to take Rio Grande to feasibility and then production in the shortest possible time period.” – Gabriel Rubacha, CEO & Director
Materiality Assessment: Material – Positive (the release provides a comprehensive economic evaluation that could materially affect investor perception and valuation).