First Phosphate Corp. (CSE:PHOS, OTCQB:FRSPF) has filed its preliminary economic assessment with SEDAR, part of the regulatory portion of the report that was released back in December 2024.
The PEA on the Begin-Lamarche property outlines a “potentially viable case” for open pit mining of phosphate concentrate.
According to the PEA, the project would produce an average of 900,000 tonnes of phosphate concentrate annually, with a 40% P2O5 content, along with 380,000 tonnes of magnetite, at a 92% Fe2O3 content, over a 23-year mine life.
The project’s pre-tax internal rate of return (IRR) is estimated at 37.1%, with a net present value (NPV) of $2.1 billion at an 8% discount rate, based on a three-year average phosphate price and a two-year average magnetite price, both adjusted for purity and supply security.
After tax, the project is expected to generate an IRR of 33% and an NPV of $1.59 billion at an 8% discount rate.
It would generate an after-tax cash flow of $700 million in the first three years, leading to a 2.9-year payback period.
The pre-tax cash flow for the same period is projected at $783 million, resulting in a 2.6-year payback period.