Lithium Ionic (TSXV:LTH) - Sub-$200M Build, $2B NPV at Today's Lithium Prices

Interview with Blake Hylands, CEO of Lithium Ionic Corp.

Our previous interview: https://www.cruxinvestor.com/posts/lithium-ionic-tsxvlth-non-core-asset-sale-injects-30m-to-fast-track-bandeira-11443

Recording date: 24th September 2026

Lithium Ionic Corp. (TSXV:LTH) is a Canadian lithium developer advancing the Bandeira hard-rock lithium project in Minas Gerais, Brazil. The project sits in an established lithium district, alongside Sigma Lithium's Grota do Cirilo operation and the CBL Cachoeira mine, which has produced lithium since 1991. CEO Blake Hylands outlined how the company plans to move Bandeira from engineering into construction.

The company's financial position has improved materially. Lithium Ionic has closed the sale of its non-core Salinas asset, and Hylands said it now holds almost C$30 million in cash after closing costs. The company's presentation showed roughly C$12 million at the end of March 2026. The sale also delivered a 2% royalty and a further US$7.5 million deferred payment still to be received. This cash funds engineering and pre-construction work while permitting and financing are completed.

Permitting is the key near-term catalyst. Hylands said the federal process is being finalised, which will return the project to the state committee for a vote expected to begin within about two months. The company is targeting permits in hand by the end of 2026. The permit has not yet been granted. The construction licence application was first submitted in November 2023.

Bandeira's economics are built on a low capital requirement. The September 2025 feasibility study estimated initial capital of US$191 million, including contingency, supporting a post-tax NPV of US$1.45 billion and a 61% post-tax IRR. These figures used Fastmarkets forecast pricing, with a near-term assumption of US$1,392 per tonne of SC6. The project is designed to produce an average of 177,000 tonnes of spodumene concentrate per year over an 18.5-year mine life. Hylands said spot prices are currently between US$2,000 and US$2,500 per tonne. At those levels, he estimates the NPV is closer to US$2 billion with an IRR near 100%. The company's January 2026 sensitivity at a US$2,515 per tonne spot price showed a US$1.8 billion NPV and a 102% IRR.

Offtake terms provide downside protection. Binding five-year agreements with Yahua Group and Grand Chen, signed in March 2026, are priced at market with no discount and a floor of US$1,000 per tonne. Hylands estimated all-in sustaining costs at about US$650 per tonne, meaning the company would be profitable on every tonne sold under the agreements. A US$20 million prepayment tied to the offtake will be released at the final investment decision.

On financing, management expects 60% to 65% of the roughly US$191 million to US$200 million requirement to come from debt. Institutional shareholders have signalled interest in the equity portion, which Hylands expects to be modest and i