Romico, Quebec 'Laroute' Graphite PFS Technical Report Submitted… Will Enter the Feasibility and Environmental Assessment Stage

Canadian mining company Romico Metals announced that it has submitted an independent technical report to Canada’s SEDAR+ public disclosure system, providing the basis for its pre-feasibility study (PFS) of the La Loutre graphite project in Quebec. The report was prepared based on the PFS results announced on March 24, and the company stated that there are no significant differences from the previously disclosed information.

The core focus is on economic viability. The report shows that the pre-tax net present value (NPV) of the La Loutre project is CAD 797.5 million, and the after-tax NPV is CAD 617.4 million. The internal rate of return (IRR) before tax is 30.3%, and after tax is 24.7%. Assuming a graphite concentrate price of $1,524 per ton. At an exchange rate of 1,465.50 Korean won to 1 US dollar, this is approximately 2.23 million Korean won.

Reserves have also been specified. According to estimates compliant with NI 43-101 standards, the inferred proven reserves amount to 46.8 million tons, with an average grade of 4.79% Cg (graphite carbon). The total amount of graphite contained on-site is evaluated at 2.24 million tons. The mine life is estimated at 28 years, with an average recovery rate of 93% over the entire period. The produced graphite concentrate has an average grade of 97.0% Cg.

Initial capital expenditure is CAD 504.6 million. The pre-tax payback period is 3.1 years, and after tax is 3.2 years. The company expects to produce a total of 2.15M tons of graphite concentrate during the mine’s operational life. Regarding revenue, the report also mentions that over the entire mine life, sales could contribute more than CAD 4.7 billion.

CEO Gordana Slepcev emphasized that this project is an opportunity to contribute to the supply chain for Canada and North America’s “energy transition.” She specifically pointed out that in southern Quebec, long-term employment, regional contracts, and increased indigenous community participation are expected to generate economic ripple effects. The company added that it will continue to collaborate with local governments in the Papineau region and the Kittigan Zibi indigenous community.

This PFS was coordinated by DRA Americas, with Norda Stelo responsible for geology, mineral resources, open-pit design, and environmental and permitting review. Knight Piésold handled waste rock dump and slope stability, groundwater inflow, and geochemical assessments. Metpro Management was responsible for interpreting metallurgical test results. Multiple qualified persons (QPs) under NI 43-101 participated in the technical review.

The next steps include a feasibility study (FS) and environmental impact assessment. The report authors believe that the current PFS results are sufficiently reliable in terms of technology and finance, but recommend additional on-site investigations, metallurgical testing, and comparative analysis of alternative options. The company also plans to conduct further exploration of the La Loutre site’s geological potential in parallel.

In terms of funding, this PFS and the related data collection work are partly supported by the U.S. Defense Production Act (DPA) Title III support program announced in May 2024. The total funding amounts to USD 8.35 million, corresponding to the first phase of PFS and baseline data collection.

Market considerations suggest viewing this report in the context of the increasing importance of graphite as a “strategic mineral” in supply chain strategies. As a key raw material for electric vehicle battery anodes, and with discussions on North American supply chain self-sufficiency accelerating, graphite is being reevaluated as a strategic asset. If the La Loutre project moves into development, it could strengthen its presence not only in Quebec but also within the North American battery materials ecosystem.

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