Hard-Rock Lithium Mine NPV and IRR Valuation Model – Excel XLSX

BENEFITS OF THIS DOWNLOADABLE EXCEL DOCUMENT

1. Values a spodumene project by converting Li2O in ore to concentrate tonnes priced off an SC6 deck.
2. Reports cash cost and AISC per tonne of concentrate alongside after-tax NPV, IRR and payback.
3. Makes it fast to test several lithium price decks and see which assumptions move value most.

MINING INDUSTRY EXCEL DESCRIPTION

Hard-Rock Lithium Mine NPV and IRR Valuation Model is an Excel template (XLSX) available for immediate download upon purchase.

This Excel model values a hard-rock lithium project producing spodumene concentrate. It builds a life-of-mine schedule, converts Li2O in ore into concentrate tonnes using recovery and concentrate grade, prices the concentrate against an SC6 (6% Li2O) price deck adjusted for your concentrate grade, deducts freight and royalty, and calculates tax, capital and free cash flow year by year.

What is the model used for?

To screen a spodumene project quickly and transparently: what it is worth at different lithium prices, how much funding it needs, how low the cost position is, and which assumptions drive value. Lithium prices are volatile, so the model is built to run several price decks fast.

Key outputs
• After-tax NPV and IRR, payback and peak funding requirement
• Concentrate production by year and over the life of mine, with an LCE memo line
• Cash cost and AISC per tonne of concentrate
• Annual and cumulative free cash flow charts
• Sensitivity: tornado table for concentrate price, grade, operating cost and capex, plus a 5×5 price × grade NPV grid

Inputs covered

Ore reserve, head grade (Li2O), mining and processing rate, strip ratio, Li2O recovery, concentrate grade and moisture, freight to port, mining, processing and G&A costs, initial capex and phasing, sustaining capex, closure, royalty on FOB revenue, tax and discount rate, a year-by-year SC6 price deck and scenario factors.

Built-in simplifications (stated on the Guide sheet)
• Annual, real-terms, end-of-year cash flows, discounted to the start of construction
• Concentrate price scales linearly with Li2O grade relative to 6%; no penalties for iron or mica
• Revenue is FOB port; royalty is charged on FOB revenue
• Straight-line depreciation of initial capex; no tax-loss carry-forward or working capital; flat average grade

What you get
• One .xlsx file with 5 sheets: Guide, Summary, Inputs, Cash Flow, Sensitivity
• 1,286 live formulas, no macros, no hidden sheets, no locked cells or passwords
• Blue-on-yellow input cells; every output can be traced back to an input
• All labels in English and Simplified Chinese
• Works in Excel 2016+ / Microsoft 365 and LibreOffice

How to work with the template
• On the Inputs sheet, replace every yellow cell with your project's numbers.
• Enter your price deck for each production year.
• Read the results on the Summary sheet and check the annual detail on Cash Flow.
• Use the Sensitivity sheet to see which assumption moves NPV the most, then use the scenario factors on Inputs to test your own cases.

Who is it for?

Mining analysts and investors screening a deal, junior-miner management preparing a first-pass economic case, corporate development and M&A teams, consultants, lenders, and students learning mine valuation.

Important notes
• The example project and all figures are fictional and for illustration only.
• This is a modelling template for screening and education. It is not investment advice and is not a substitute for an NI 43-101 / JORC technical study or a Competent / Qualified Person's opinion.
• You receive the fully editable Excel file.

About the author

Built by an investment and M&A professional working on the buy side in gold mining and industrials in Hong Kong and Singapore. Custom adaptations to your project data are available on request.

Source: Best Practices in Mining Industry, Integrated Financial Model Excel: Hard-Rock Lithium Mine NPV and IRR Valuation Model Excel (XLSX) Spreadsheet, gx76520