That’s how analysts are describing NEMASKA Lithium’s Whabouchi Lithium Project worth and estimated C$1.1Billion.
Over promising and under-delivering has proved costly for long term shareholders as NEMASKA’s share price has tanked 50% this year alone.
Nemaska Lithium now needs to raise an estimated C$375 million to complete construction on both the mine and electro-chemical plant.
Here are more details of what happened, according to the company.
The additional funding is largely related to installation and indirect costs, said the company. Labor costs and Installation costs during winter were main contributors.
“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.
“We now have a better understanding on the remaining scope of the project, estimated budget and current market conditions.”
“Our 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 in December 2019, followed by the start-up of the Shawinigan facility the year after,” Bourassa said.
This recent announcement comes at a time when the already bruised and battered Lithium market could do with a few good new stories.