Ashram PEA confirms robust rare earth project economics
Mont Royal Resources' updated PEA for the Ashram Project outlines a 30-year mine life with a post-tax NPV of CAD$2.03B and an IRR of 22.0%. The study estimates an initial CAPEX of CAD$1.23B and average annual production of 17,466 tonnes of saleable REO.
*this image is generated using AI for illustrative purposes only.
Mont Royal Resources Limited has released an updated Preliminary Economic Assessment (PEA) for its 100%-owned Ashram Rare Earths and Fluorspar Project located in Quebec, Canada. The study confirms the project's potential as a large-scale, long-life development with a post-tax Net Present Value (NPV) of CAD$2.03 billion and an Internal Rate of Return (IRR) of 22.0%. The initial capital expenditure is estimated at CAD$1.23 billion, which includes a 30% contingency but excludes access road costs.
Project Economics and Production
The PEA defines a 30-year mine life supported by a resource base where 93% is classified in the Indicated category. The project is designed to produce an average of 17,466 tonnes per annum of saleable Rare Earth Oxide (REO), including 4,035 tonnes of Neodymium and Praseodymium (NdPr). The Life of Mine (LOM) revenue is projected at CAD$24.6 billion with an EBITDA margin of approximately 62.7%.
Economic Summary
| Metric | Value |
|---|---|
| Post-tax NPV8% (real) | CAD$2,026M |
| Post-tax IRR (real) | 22.0% |
| Pre-tax NPV8% (real) | CAD$3,440M |
| Pre-tax IRR (real) | 25.6% |
| Payback period | 3.9 years |
| LOM Revenue | CAD$24,638M |
| LOM EBITDA | CAD$15,460M |
Operating Costs and Capital
The study highlights a competitive cost position with a C1 cash cost of CAD$17.99 per kilogram of saleable REO and an All-In Sustaining Cost (AISC) of CAD$18.58 per kilogram. The total LOM capital expenditure, including sustaining, closure, and post-closure costs, is estimated at CAD$1.605 billion. The project is anticipated to benefit from approximately CAD$342 million in refundable Clean Technology Manufacturing Investment Tax Credits.
Capital Cost Breakdown
| Area | Initial (CAD$M) | Sustaining (CAD$M) | Total (CAD$M) |
|---|---|---|---|
| Ashram Concentrator | 295 | - | 295 |
| Saguenay Hydrometallurgical Refinery | 358 | - | 358 |
| Ashram Non-Processing Infrastructure | 192 | - | 192 |
| Ashram Tailings Storage | 23 | 210 | 232 |
| Closure | - | - | 57 |
| Contingency (30%) | 284 | 69 | 370 |
| Total | 1,231 | 299 | 1,605 |
Strategic Positioning and Next Steps
Ashram is positioned as one of the largest monazite-dominant rare earth deposits in North America, located in a Tier-1 mining jurisdiction. The development strategy includes on-site concentration at Ashram and downstream hydrometallurgical refining in Saguenay. Mont Royal's Managing Director, Nicholas Holthouse, stated that the updated PEA marks a major step forward, confirming strong underlying economics and a clear pathway to advancement.
The company plans to progress toward a Pre-Feasibility Study (PFS) targeted to commence in the second half of calendar year 2026. Future work will focus on metallurgical optimisation, engineering refinement, and advancing environmental baseline and permitting programs.
How will Mont Royal Resources secure the necessary funding for the CAD$1.23 billion initial capital expenditure?
What impact will the Clean Technology Manufacturing Investment Tax Credits have on the project's overall financial feasibility?
How might potential fluctuations in global Rare Earth Oxide prices affect the projected NPV and IRR?
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