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Electric Royalties Announces Filing of Independent Preliminary Economic Assessment for Battery Hill Manganese Project
VANCOUVER, BC / ACCESSWIRE / July 5, 2022 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF)...
About this update from Electric Royalties Ltd.
[{"type":"text","content":"Electric Royalties Announces Filing of Independent Preliminary Economic Assessment for Battery Hill Manganese ProjectVANCOUVER, BC / ACCESSWIRE / July 5, 2022 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) (\"Electric Royalties\" or the \"Company\") is pleased to announce that Manganese X Energy Corp. (TSXV: MN) has filed a Preliminary Economic Assessment (\"PEA\") of the Battery Hill manganese project (\"Battery Hill\") in New Brunswick, Canada, on SEDAR. Electric Royalties holds a 2% gross revenue royalty on Battery Hill, which is projected to have a 47-year operating mine life.Brendan Yurik, CEO of Electric Royalties, commented: \"We congratulate our royalty asset partner Manganese X Energy on this milestone, which shows significant gross revenue projections for the Battery Hill project of US$177 million per year over an initial forecast mine life of 47 years. Electric Royalties' 2% gross revenue royalty entitles us to 2% of those gross revenues which, once in production, could present a source of significant cash flow to the Company moving forward. The Battery Hill PEA forecasts robust economics and a short payback period for a relatively low capital investment which bodes well for Manganese X Energy as it strives to become the first North American company to commercialize high purity, battery-quality manganese.\"Highlights of the PEA (all dollar values are in US dollars unless otherwise stated)1:Robust EconomicsAfter-tax net present value using a 10% discount rate (\"NPV10\"): $486 millionAfter-tax internal rate of return (\"IRR\") of 25%Capital costs (\"CAPEX\") of $350 million with a payback of 2.8 yearsAverage annual gross revenue of $177 million per year over the 47 years project lifeAverage annual gross revenue of $220 million over the first seven yearsLife of mine (\"LOM\") operating cost (\"OPEX\") of $122/tonne material processedHPMSM Market Price and SensitivityBase case market price of $2,900/tonne for battery-grade high-purity manganese sulphate (\"HPMSM\") used for the study is well below the long-term forecast price of $4,200/tonne HPMSM estimated by CPM Group2Sensitivity analysis shows after-tax NPV10 increases to $914 million at $4,200/tonne HPMSMLong Mine Life40-year mine production life and seven years of stockpile reclaim feedTotal LOM production of 3.2 million tonnes of HPMSMAverage annual HPMSM produ...