Nemaska Lithium Provides Project Construction Update
- Project construction at both sites currently on track with timeline and budget
- Concentrate production expected to start in H2 2019 with lithium salts production expected in H2 2020
- $272.4M or 31% of the total project budget has been committed
QUÉBEC CITY, Quebec, Oct. 01, 2018 (GLOBE NEWSWIRE) -- Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX: NMX) (OTC: NMKEF) is pleased to provide a construction project and development timeline update for its Whabouchi mine and electrochemical plant in Shawinigan (the “project”). Guy Bourassa, President and CEO of Nemaska Lithium will be hosting an online conference call on Monday, October 1, 2018 at 11 am EDT. The webcast can be accessed at https://edge.media-server.com/m6/p/nerewhjs and the associated presentation will be available later today for download at https://www.nemaskalithium.com/en/investors/webcast-call/. Dial-in numbers are US/CANADA Participant Toll-Free Number: (866) 353-6129 or US/CANADA Participant International Number: (409) 217-8084. The participant access code is 4097457.
As regards occupational health and safety, the Corporation is pleased to report that, up to this date, there has been no lost time due to injury during the 149,367 construction and engineering hours worked at both Whabouchi and Shawinigan sites.
Following the finalization of the project financing structure on May 30, 2018, and receipt of the first tranche payment (USD $75M) from the Orion Stream on August 23, 2018, the construction is progressing as planned and within anticipated budget allowances at both Whabouchi and Shawinigan locations.
The Corporation will report, along with the dissemination of its quarterly financial results, on the evolution of the project compared to construction schedule and budget. As of September 1, 2018, a total of $272.4M or 31% of the total project budget of $874.7M, including contingency, has been committed. The total budget of $874.7M includes $73.5M already invested by Nemaska Lithium as at November 30, 2017 and identified as sunk costs in the 2018 Feasibility Study.
Guy Bourassa, President and CEO of Nemaska Lithium said “Overall, I am pleased that we are progressing according to plan and within our budget, which includes a contingency allocation of approximately $100M, that was built into the budget as capital investment during the course of the Project. Contingency expenditures are tracking approximately 30% lower than the budget forecast as at September 1, 2018. Given that a large portion of the direct costs have already been committed, this leave more contingency that can be allocated to the indirect and owners’ costs. In addition, to the contingency built in the budget, we have deposited $40M into a restricted bank account as a cost overrun facility.”
All amounts are in Canadian dollars
Expenditures and commitments as of September 1, 2018
|As at Sept 1, 2018||NI 43-101 Budget remaining commitments||Estimate at completion (EAC)||
as at Sept. 1, 2018
|Shawinigan Electrochemical Plant||$470.8M||$126.1M||$41.9M||$355.3M||$481.4M||$10.6M|
|TOTAL WHABOUCHI & SHAWINIGAN||$874.7M||$272.4M||$134.9M||$602.3M||$874.7M|
As for the purchasing packages for both site, 44% of the budget has been committed for the Whabouchi mine and 23% for the Shawinigan electrochemical plant, putting Nemaska Lithium in line to complete the project construction per the timeline. The mine construction has a 12 to 15 months schedule from the date of this release, with concentrate production expected to commence in the second half of 2019. The electrochemical plant has a 24 month construction schedule from the date of this release, with production estimated to begin in the second half of 2020.