Vulcan Minerals Inc. - Atlas Salt Inc. Releases Enhanced Updated Feasibility Study on the Great Atlantic Salt Project

Executive Summary

• Atlas Salt Inc. released an enhanced Updated Feasibility Study (UFS) for the Great Atlantic underground salt project, confirming strong economics with a pre‑tax NPV of $1.68 billion and IRR of 27.1%.
• The study projects average annual EBITDA of $325 million, production of 4.0 Mtpa of high‑purity (95.9% NaCl) salt over a 24‑year life, and an initial capital requirement of $589 million.
• Vulcan Minerals holds ~30% of Atlas and a 3% net production royalty, positioning it to benefit from anticipated development financing.

Key Details

• Study Preparation: Conducted by SLR Consulting (Canada) Ltd. with engineering input from Shaft & Tunnel Consulting Services, Terrane Geoscience, Sandvik Mining & Rock Solutions, and Tamarack Resources.
• Economic Assumptions (2025 CAD, real terms):
• Salt price: $81.67 / t FOB port.
• Pre‑tax NPV8: $1.68 billion; IRR: 27.1%.
• Post‑tax NPV8: $920 million; IRR: 21.3%.
• Undiscounted post‑tax cash flow (LOM): $3.93 billion.
• Capital & Operating Costs:
• Initial capital estimate: $589 million (Class 3, –10% to +30% accuracy).
• LOM sustaining capital: $609 million.
• Average operating cost: $28.17 / t FOB port (–10% to +20% accuracy).
• Production Profile:
• Average steady‑state production: 4.0 Mtpa of salt.
• Total tonnes produced/sold over LOM: 90.3 Mt.
• Life of Mine: 24 years.
• Financial Metrics:
• Average annual post‑tax cash flow: $188 million.
• Post‑tax payback period (from first production): 4.2 years.
• Reserve Quality: Estimated NaCl grade of 95.9%.
• Vulcan’s Stake: Owns 28,972,000 Atlas common shares (~30%) and a 3% net production royalty on the Great Atlantic licences.
• CEO Comment (Patrick Laracy, Vulcan): “The Updated Feasibility Study further confirms the compelling economics of the Great Atlantic Salt Project… we look forward to seeing this project receive development financing with all the related benefits flowing to stakeholders.”

Notable Quotes

“The Updated Feasibility Study further confirms the compelling economics of the Great Atlantic Salt Project. We congratulate the team at Atlas for accomplishing this critical step towards advancing the project to production.” – Patrick Laracy, CEO, Vulcan Minerals Inc.