Nemaska Lithium’s (TSE: NMX) stock plummeted Wednesday after disclosing it has been forced to revise the budget for the Whabouchi lithium mine and Shawinigan electrochemical plant upward by $375 million. The company clawed back some of the day’s losses, but still closed the day down 35%.<\/p>\n
The Canadian developer arranged a $1.1 billion financing for the lithium project in May 2018. By the end of the year, Nemaska had already spent over $138. million on the Whabouchi mine and mill, and another $67.3 million for the plant in Shawinigan. The additional funding is largely related to installation and indirect costs, said the company. Direct purchase package costs \u2013 mainly equipment \u2013 are in line with the original budget.<\/p>\n “The revised overall project cost reflects a more precise outlook on installation costs and other key variables to the completion of our project,” Nemaska president and CEO Guy Bourassa said in a media statement.\u00a0\u201cWe now have a better understanding on the remaining scope of the project, estimated budget and current market conditions.”<\/p>\n \u201cOur objective remains to close the required financing on time to stay on target to complete mine construction in October 2019, in order to make the first shipment of spodumene concentrate in December 2019, followed by the start-up of the Shawinigan facility the year after,\u201d Bourassa said.<\/p>\n Construction and purchasing at both sites is on schedule for the undertaking.<\/p>\n (With files from the\u00a0Canadian Mining Journal.<\/a>)\u00a0<\/em><\/p>\n The post Quebec lithium developer’s stock craters after cost blowout<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Nemaska arranged a $1.1 billion financing for the lithium project in May 2018.<\/p>\n The post Quebec lithium developer’s stock craters after cost blowout<\/a> appeared first on 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additional funding is largely related to installation and indirect costs, said the company<\/q><\/p>\n