Fort Cady’s 39.5-Year Boron Mine Faces Market and Permitting Challenges Ahead

• 39.5-year mine life with 5.4 million short tons boric acid reserves
• Projected annual production of 130,000 short tons of boric acid
• Total capital cost estimated at $435 million including contingency and owner’s costs
• Pre-tax net present value (NPV7) of $724.8 million and internal rate of return (IRR) of 19.2%
• In-situ leaching mining method with existing permits and operational small-scale facility

Project Overview and Strategic Importance

5E Advanced Materials, Inc. has published a detailed Preliminary Feasibility Study (PFS) for its Fort Cady Project, located in the Mojave Desert near Newberry Springs, California. The project represents one of the largest new conventional boron deposits globally and is a cornerstone of 5E’s ambition to become a vertically integrated supplier of critical industrial minerals. Boron, extracted primarily as boric acid, is essential for a range of applications including electrification, clean energy, food security, and defense.

The PFS focuses on Phase 1 of the project, which converts approximately 41% of the mineral resource into proven and probable reserves totaling 5.4 million short tons of boric acid at an average grade of 8.03% B2O3. The initial mine life is projected at 39.5 years, with an annual production target of 130,000 short tons of boric acid, complemented by byproducts calcium chloride and gypsum.

Mining and Processing Methodology

The Fort Cady deposit is mined using an in-situ leaching (ISL) method, which minimizes surface disturbance by dissolving colemanite underground with hydrochloric acid solution. The pregnant leach solution (PLS) is then processed at a commercial-scale facility designed by Fluor Corporation. The processing includes multi-stage crystallization and impurity removal to produce high-purity boric acid that meets customer specifications.

5E’s small-scale facility (SSF), operational since April 2024, has provided critical operational data and product qualification with over 14 customers. The PFS incorporates learnings from the SSF, including the successful conversion of two injection-recovery wells to horizontal wells, enhancing resource contact and recovery efficiency.

Economic Highlights and Capital Investment

The PFS estimates a total capital cost of approximately $435 million, which includes $367 million for the processing facility and infrastructure, $50 million for a cogeneration power plant, $31 million for the wellfield, and $5.6 million for evaporation ponds. A contingency of 15% and owner’s costs are included to provide financial robustness.

Operating costs are forecasted at $555 per short ton of boric acid produced, inclusive of logistics. The economic model projects a pre-tax net present value (NPV7) of $724.8 million and an internal rate of return (IRR) of 19.2%, with a payback period of approximately six years after production commencement in 2028.

Market Outlook and Strategic Positioning

Market analysis by Kline & Company indicates a tightening global boric acid supply, with demand forecasted to outpace supply starting in 2026. The boric acid market is dominated by a few suppliers, and 5E’s Fort Cady Project is positioned to capture approximately 11% of current global demand upon ramp-up. Byproducts calcium chloride and gypsum add incremental revenue streams, primarily serving regional markets.

5E is actively engaging with potential customers and distributors, having secured multiple non-binding letters of intent and qualified product samples. The company’s U.S.-based operation aligns with strategic interests in securing domestic supply chains for critical materials.

Next Steps and Forward-Looking Considerations

Following this PFS, 5E plans to advance to Front End Engineering Design (FEED) and definitive feasibility studies, with an estimated $6.6 million budget for further engineering and testing. The company aims to refine capital cost estimates, optimize process design, and secure long-term financing and offtake agreements. Environmental permitting and regulatory compliance remain on track, supported by existing approvals and ongoing monitoring.

CEO Paul Weibel emphasized the project’s economic strength and strategic importance, highlighting the team’s progress and readiness to scale commercial production. The Fort Cady Project is poised to become a significant U.S. boron producer, supporting critical supply chains amid growing global demand.

Bottom Line?

With strong fundamentals and a clear path to commercialization, 5E’s Fort Cady Project is set to reshape the U.S. boron supply landscape.

Questions in the middle?

• How will 5E secure financing and finalize offtake agreements to support commercial scale-up?
• What are the risks and timelines associated with permitting modifications for expanded mining blocks?
• How will fluctuations in boric acid pricing and input costs impact project economics over the mine life?