Energizer Resources

Overview

Energizer Resources Inc. (TSX:EGZ,OTCQB:ENZR,WKN:A1CXW3) is a Canadian-based mineral exploration and mine development company focused on the development of its wholly-owned Molo Graphite Project in southern Madagascar. The Molo project is one of the world’s most advanced, full feasibility-stage graphite projects and is on-track for production in Q4 2018.

Among the dozens of graphite companies around the globe, Energizer is one of the few to have delivered a full feasibility study. Energizer’s 2015 full (bankable) feasibility study confirms the attractive economics of the Molo deposit, including reasonable capital costs and operating costs in the lowest quartile for the industry. The study also outlines a very large NI 43-101 compliant resource that is immediately at surface with a negligible strip ratio. The feasibility study shows a 26-year mine life with annual average production of 53,017 tonnes of flake graphite concentrate, a post-tax NPV of US$389M, an IRR of 31 percent and payback in less than 5 years.

The quality of the flake graphite concentrate produced from the Molo’s pilot plant has been fully tested and validated by various leading graphite buyers, processors and end-users across all the top demand markets for graphite, including refractories, batteries, foils and graphene.

The Molo project is currently in the permitting stage and awaiting results of a recently initiated a front-end engineering and design (FEED) study. The company is presently focused on securing project financing and off take agreements on the strength of the feasibility study results and the soon to be released FEED Study results. In August 2016, Energizer announced that Dundee, Canada’s premier mining investment fund, took a 19.4% interest in Energizer, investing C$6,000,000 into a private placement in order to fund the FEED Study and the next major development catalyst. The FEED Study is being undertaken by Energizer in order to determine potential development path options that have been presented to them by prospective strategic partners.

Investment Highlights

• Shovel-ready, permitting-stage project
• Attractive economics confirmed through a completed full feasibility study
• Incredibly large resource
• Environmental and social responsibility studies conducted to highest international standards
• Technically de-risked
• Multiple development pathways: graphite suitable for all applications including refractories, graphite foil and lithium-ion batteries
• Lowest-quartile producer
• Madagascar government-supported project
• Largest shareholders collectively hold around 40 percent of Energizer: Dundee CMP Funds; JP Morgan; VR Capital