Key Highlights

  • The updated study reports an after-tax NPV of US$3.72 billion at an 8% discount rate.
  • Adding a tantalum Credit lowers average life-of-mine cash operating costs by 19% to C$549 per tonne.
  • The reordered mine sequence brings the high-grade Nova Zone into underground Mining first.
  • Phase one has a Capital cost of C$1.4 billion, with a final Investment decision targeted for late 2027.

PMET Resources (ASX:PMT) released an updated Feasibility Study for the CV5 Pegmatite at its Shaakichiuwaanaan Project in Québec on 11 November 2026. The project sits in the Eeyou Istchee James Bay region and is wholly owned by the company.

The update makes two main changes. It adds tantalum recovery to the lithium plan, and it reorders the mine sequence so that underground mining reaches the high-grade Nova Zone first. PMET is targeting a final investment decision in late 2027 and plant commissioning in late 2029.

The headline numbers

The study reports an after-tax net present value of US$3.72 billion at an 8% discount rate. That figure assumes a spodumene price of US$1,788 per tonne and a tantalum price of US$120 per pound.

Average life-of-mine total cash operating costs fall 19% to C$549 per tonne, free on board at Québec ports, after a tantalum credit of C$148 per tonne. All-in sustaining costs fall 18% to C$657 per tonne.

Phase one has processing capacity of 2.2 million tonnes a year and a capital cost of C$1.4 billion. Expansion to 5.1 million tonnes a year adds C$672 million, taking total capital to C$2.063 billion.

Production profile

The plan combines underground mining in phase one with open-pit mining in phase two over a 20-year life. Spodumene concentrate output ramps to about 560,000 tonnes a year in the first three years and up to 800,000 tonnes a year in phase two.

The plant would also produce a tantalite concentrate averaging about 288 tonnes of contained tantalum pentoxide a year. The study includes a maiden probable mineral reserve covering tantalum of 83 million tonnes at 1.27% lithium oxide and 148 parts per million tantalum pentoxide.

Why tantalum matters

Tantalum is used in capacitors for electronics and in high-performance alloys, and Supply is concentrated in a small number of countries. For PMET, the by-product credit reduces the effective cost of producing each tonne of spodumene, which can help a project remain competitive when lithium prices are low.

Chief Executive Ken Brinsden said the study demonstrated improved economics, a more favourable phase-one production profile and a more advanced, lower-risk execution plan to underpin the investment decision.

Assumptions to test

The NPV is highly sensitive to the spodumene price. Lithium markets have been volatile, and a price materially below the study assumption would reduce returns. The tantalum price assumption also matters, given that market's small size and limited transparency.

Starting underground at Nova brings higher grades forward, but underground mining generally carries higher unit costs and execution complexity than open pits. Capital estimates can also rise as engineering advances.

Funding is a further consideration.

The study also sits within a broader shift in the Canadian lithium sector. Several James Bay developers have slowed spending during the lithium price downturn, while larger groups have reviewed their exposure. PMET's response has been to rework the plan to bring forward higher-grade ore and add a second Revenue stream, rather than simply delay development. If the approach succeeds, CV5 could be one of the more advanced hard-rock lithium projects in North America when the next investment cycle arrives. The company's caesium resource, upgraded in grade and scale on 4 November, adds a further critical mineral to the wider property portfolio, although caesium does not form part of the Economics in this study.

Next steps

PMET has said a preliminary economic assessment of a combined CV5 and CV13 scenario is due this quarter. The company also announced executive and board succession arrangements on the same day. Investors will look for progress on permitting, offtake and financing as the late-2027 investment decision approaches.