5E Advanced Materials Discloses Fort Cady Project Pre-Feasibility Results

5E Advanced Materials, Inc. recently published the Preliminary Feasibility Study for its Fort Cady Project in California. The report emphasizes the project's robust financial outlook, with an initial 39.5-year mine life. Key findings include a forecasted pre-tax net present value (NPV7) of $724.8 million and an internal rate of return (IRR) of 19.2%. The study only considers Phase 1, which plans for 5.4 million tons of boric acid reserves.

The project will leverage in-situ leaching (ISL) to reduce surface land disturbances. Expected to start full-scale production in 2028, the initial phase aims to produce 130,000 tons of boric acid annually, meeting about 11% of current global demand. The capital cost for Phase 1 is projected at $367 million, with additional contingency and owner's costs bringing the total to $435 million.

Revenue is projected to mostly come from boric acid, with calcium chloride and gypsum as by-products. Market studies predict that demand for boric acid will soon surpass supply, potentially driving prices higher.