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In short

Net Present Value:

$0.25 B

$12000/t LCE pricing. After-tax, 8% Discount rate

Resource Estimate:

0 Mt

0.2* Mt

LCE, Measured & Indicated (*Inferred)

Stage:

PEA

Completed

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Lithium project:

Clayton Valley

Nevada, USA

Project Summary

Net Present Value

$0.25 B

$12000/t LCE pricing. After-tax, 8% Discount rate

Resource Estimate

0 Mt

0.2* Mt

LCE, Measured & Indicated (*Inferred)

Completed Stage:

PEA

Location: Nevada, USA
Completed Stage: PEA
Next Stage: PFS
Deposit type: Brine DLE

Website: pureenergyminerals.com

Company description

Pure Energy’s flagship lithium brine project is located in Clayton Valley, Nevada, immediately adjacent to North America’s only producing lithium mine. The Clayton Valley Project contains an inferred mineral resource of 218,000 tonnes of lithium carbonate equivalent (“LCE”), reported in accordance with Canadian National Instrument 43-101 on June 26, 2017.

Pure Energy is based in Vancouver, BC, Canada and is listed on the TSX Venture Exchange in Canada (PE.V), OTC Markets in the USA (OTCQB: PEMIF), and the Frankfurt Stock Exchange (AHG1).

Key takeaways:

1. Partnered with Schlumberger

Schlumberger is the operator of the project. Under the terms of the agreement, Schlumberger has three years following acquiring the necessary permits to construct a pilot plant and conduct preliminary testing for future production. 

2. Sclumberger Earn-In agreement

At any time during the three-year earn in agreement dated may 1st, 2019, Schlumberger has the option to acquire 100% of the un-patented mining claims and the assets held by Pure Energy Minerals. Pure Energy Minerals will in return be entitled to a 3% net smelter returns royalty. 

Resources & Reserves

Resources

Reserves

Project Economics

Initial capital costs

$297M

After-tax IRR

19.6%

$12000/t LCE pricing, 8% Discount rate

Operating Cost

$3217/t

LCE

Ownership

100%*

*Of the Clayton Valley project, with Earn-In agreement to sell 100% of the asset to SLB

Sensitivity Analysis - Forecasted Pricing

Forecasted LCE pricing After-tax NPV(8%) After-tax IRR
$12000/t
*$0.248 B
*19.6%
$12,267/t
$0.26 B
21%
$12,8800/t
$0.3 B
24.2%

*Interpolated value

Pure Energy Minerals: $PE Current valuation

See how much of the Clayton Valley project’s Net Present Value is priced in with todays valuation.  The data is delayed 15-minutes.

Note that Pure Energy Minerals signed an earn-in agreement for 100% of the project with SLB, which might affect the potential value for shareholders.

Compare to other companies!

Want to know how the valuation of $PE compare to other lithium companies in North America?

Company financials

Debt

$0.27 M CAD

Sep 20, 2020

Cash & Cash eq

$0.25 M CAD

Sep 20, 2020
includes Assets up for sale

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