en.Wedoany.com Reported - Mont Royal Resources (ASX: MRZ) has released an updated Preliminary Economic Assessment (PEA) for the Ashram Rare Earth and Fluorspar Project in Quebec, Canada, confirming the project's strong economic viability.

Managing Director Nicholas Holthouse stated that the updated PEA confirms a large-scale, long-life development project with robust underlying economics and a clear path forward. The study highlights the project's scale, mineralogical advantages, and competitive cost structure, supporting its potential as a long-term supplier of rare earth products to Western supply chains.

The updated PEA shows a post-tax net present value (at an 8% discount rate) of C$2.03 billion (US$2.06 billion), a post-tax internal rate of return of 22.0%, and a payback period of 3.9 years after production commencement.

The Ashram project targets an average annual production of 17,466 tonnes of saleable rare earth oxides (REO) over a 30-year mine life, including 4,035 tonnes per year of neodymium and praseodymium oxides.

Initial capital expenditure is estimated at C$1.23 billion, including a 30% contingency. Access road costs are included in operating expenditure under a shared infrastructure model. The development strategy includes on-site beneficiation at Ashram to produce a mixed rare earth concentrate, which will then be transported to a processing facility planned for Saguenay, Quebec.

The company expects revenue of C$24.6 billion over the mine life, with an EBITDA margin of 62.7%. C1 cash costs are C$17.99 per kilogram of saleable REO, demonstrating competitive unit costs.

Through this project, investors gain access to high-value magnet rare earths such as neodymium, praseodymium, dysprosium, and terbium, which are critical for electric vehicles, wind turbines, and defense applications.

Mont Royal plans to initiate a pre-feasibility study in the second half of 2026, while concurrently conducting environmental baseline studies, permitting plans, and stakeholder engagement at the site.

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