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Construction|Engineering|PROJECT
Construction|Engineering|PROJECT
construction|engineering|project

Nemaska needs C$375m more for Quebec mine, stock plunges

14th February 2019

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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The share price of Quebec junior Nemaska Lithium plummeted on Wednesday as the TSX-listed company announced that it would need more money to complete the Whabouchi mine and Shawinigan electrochemical plant.

Eight months into construction, the company performed a cost to completion assessment, which takes into account finalised agreements and/or bids, rather than estimates, and determined that it would need a further C$375-million.

Nemaska has already spent C$138.4-million on the Whabouchi mine and C$67.3-million on the Shawinigan plant, covering mainly engineering, site and civil works. Prior to construction starting, Nemaska had set a budget of C$874.4-million for the project.

“We are evaluating several options that would enable existing and new shareholders, and project partners, to join the table. Our objective remains to close the required financing on time to stay on target to complete mine construction in October 2019, in order to make the first shipment of spodumene concentrate in December 2019, followed by the start-up of the Shawinigan facility the year after,” CEO Guy Bourassa said in a statement.

Over the life-of-mine production, the company is expected to produce seven-million tonnes of spodumene concentrate, which will be converted into about 770 000 t of battery-grade lithium hydroxide and about 361 000 t of battery-grade lithium carbonate, which equates to about 213 000 t/y of concentrate being converted to about 23 000 t/y battery-grade lithium hydroxide and 11 000 t/y of lithium carbonate.

Nemaska’s stock plunged to a 52-week low of C$0.27 a share on Wednesday and closed at C$0.36 a share – down 35% on the previous day’s closing price.

Edited by Creamer Media Reporter

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