{"id":15043,"date":"2025-02-17T16:53:19","date_gmt":"2025-02-17T16:53:19","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/17\/lithium-universe-ltdbecancour-lithium-refinery-definitive-feasibility-study\/"},"modified":"2025-02-17T16:53:19","modified_gmt":"2025-02-17T16:53:19","slug":"lithium-universe-ltdbecancour-lithium-refinery-definitive-feasibility-study","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/17\/lithium-universe-ltdbecancour-lithium-refinery-definitive-feasibility-study\/","title":{"rendered":"Lithium Universe LtdBecancour Lithium Refinery Definitive Feasibility Study"},"content":{"rendered":"<\/p>\n<div> Melbourne, Australia (ABN Newswire) \u2013 Lithium Universe Limited (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF) is pleased to announce the results of its Definitive Feasibility Study (DFS) for the Becancour Lithium Carbonate Refinery in Quebec, Canada. The Company previously released a Preliminary Feasibility Study in October 2024. The follow-up DFS confirms the viability of a strong lithium conversion project, even within a below-average pricing environment. The Company plans to build a reliable, lowrisk lithium conversion refinery with an annual capacity of up to 18,270 tonnes, utilizing proven expertise from the Jiangsu processing model. The facility will produce environmentally friendly, battery-grade lithium carbonate. The Company aims to establish a Canadian-based lithium chemicals business, purchasing spodumene feedstock from both domestic suppliers and international markets, including Brazil and Africa and producing a battery grade lithium carbonate product. This aligns with the Company\u2019s broader vision of contributing to the North Atlantic lithium supply chain and closing the Lithium Conversion Gap. <\/p>\n<p> The project\u2019s economics continues to be highly favourable, even with conservative price assumptions. The refinery is economically viable with a pre-tax Net Present Value (NPV) of approximately US$718 million, using an 8% discount rate, and a pre-tax Internal Rate of Return (IRR) of around 21.0%. The full rate payback period is estimated at 3.9 years. <\/p>\n<p> The financial model is built on cautious price forecasts of US$1,170 per tonne for spodumene concentrate (SC6) and US$20,970 per tonne for battery-grade lithium carbonate equivalent (LCE). LU7\u2019s directors believe they have a reasonable basis for using the assumed price in the study of US$20,970 per tonne for battery grade lithium carbonate. Key operational assumptions include 86% plant availability and 88% lithium recovery. At full production capacity, the project is expected to generate approximately US$383 million in annual revenue, with costs totalling around US$236 million, leading to an annual EBITDA of approximately US$148 million and a gross margin of in the region of 39%. Post-tax, the NPV at an 8% discount rate is estimated at approximately US$449 million. The capital cost for the project is estimated at US$549 million, which includes a contingency of US$51 million. The capital cost has risen by 11% compared to the PFS, primarily driven by the inclusion of a Zero Liquid Discharge (ZLD) system (US$30 million) to enable the recycling and reuse of all process water on-site. Additional factors, such as escalation and updated pricing quotes, also contributed to this modest increase. The capital costs estimate is based on advanced design specifications from the Jiangsu Lithium Refinery model, ensuring robust financial planning and projection. These factors highlight the project\u2019s strong financial viability, even under conservative pricing conditions. <\/p>\n<p> Chairman\u2019s Comment <\/p>\n<p>Lithium Universe Chairman, Iggy Tan said \u2018The strong NPV and returns for the project indicate an economically viable project and the Board has made the Financial Investment Decision (FID), and the project is now proceeding to the funding stage. <\/p>\n<p> An equity and debt adviser will be engaged to lead the funding outreach program, aimed at securing strategic partners at the project level to support project financing. Initial discussions with various banks and debt providers have been encouraging. <\/p>\n<p> The Company will continue discussions with interested OEMs with spodumene offtake supply seeking conversion outside of China. We are confident that the Becancour lithium refinery, with an annual capacity of 18,270 tonnes, will emerge as a leader in producing green, battery-grade lithium carbonate. We recognized that bridging the lithium conversion gap in North America, leveraging our accumulated lithium expertise and the proven technology from Jiangsu, is a clear strategy.\u2019 <\/p>\n<p> \u2018Our counter-cyclical strategy is centered on advancing projects during market downturns, allowing us to strategically position ourselves for growth as the market rebounds. We are dedicated to funding and constructing a proven, low-risk lithium conversion refinery in Quebec, marking the first step toward establishing Quebec as the lithium conversion hub for the Transatlantic region.\u2019 <\/p>\n<p> To view the VIDEO, please visit: <br \/> https:\/\/www.abnnewswire.net\/lnk\/N50A4W00 <\/p>\n<p> *To view the full Feasibility Study, please visit: <br \/> https:\/\/abnnewswire.net\/lnk\/D1EI5591 <\/p>\n<p> About Lithium Universe Ltd: \u00a0<\/p>\n<p>Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF), headed by industry trail blazer, Iggy Tan, and the Lithium Universe team has a proven track record of fast-tracking lithium projects, demonstrated by the successful development of the Mt Cattlin spodumene project for Galaxy Resources Limited. <\/p>\n<p> Instead of exploring for the sake of exploration, Lithium Universe\u2019s mission is to quickly obtain a resource and construct a spodumene-producing mine in Quebec, Canada. Unlike many other Lithium exploration companies, Lithium Universe possesses the essential expertise and skills to develop and construct profitable projects. <\/p>\n<p> Source: <br \/>Lithium Universe Ltd <\/p>\n<p> Contact: <br \/> Alex Hanly <br \/> Chief Executive Officer <br \/>Lithium Universe Limited <br \/> Tel: +61 448 418 725 <br \/> Email: info@lithiumuniverse.com <\/p>\n<p> Iggy Tan <br \/> Chairman <br \/>Lithium Universe Limited <br \/> Email: info@lithiumuniverse.com <\/p>\n<\/p>\n<\/div>\n<p>News Provided by ABN Newswire via QuoteMedia<\/p>\n<\/p>\n<div>This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Melbourne, Australia (ABN Newswire) \u2013 Lithium Universe Limited (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF) is pleased to announce the results of its Definitive Feasibility Study (DFS) for the Becancour Lithium Carbonate Refinery in Quebec, Canada. The Company previously released a Preliminary Feasibility Study in October 2024. The follow-up DFS confirms the viability of a strong lithium conversion project, [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":15044,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-15043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=15043"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15043\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/15044"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=15043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=15043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=15043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}