IMX Resources Ltd. (ASX:IXR) announced the results of a prefeasibility study for its Tanzania-based Chilalo graphite project. According to the company, the study confirms “the emergence of Chilalo as a market-leading graphite project.”
Highlights include:

• Chilalo is technically sound with high margins, low capital intensity and attractive returns
• Pre-tax internal rate of return (IRR) of 62%
• Pre-tax NPV10 of US$200 million
• Average annual EBITDA of US$47 million over 10 year mine life
• Life of Mine (‘LOM’) average operating cost of US$490 per tonne FOB – lowest compared to similar scale projects and cost-competitive with Chinese graphite supply
• Metallurgical testing confirms high quality product in all respects: grade, flake size distribution, purity – delivering an attractive forecast basket price of US$1,217 per tonne for the Base Case and US$1,456 per tonne for the Alternative Case
• Pre-production capital expenditure of US$74 million (including contingencies), pre-tax payback period of 1 year and 7 months,
• Open pit mining (on an owner operator basis) and conventional flotation processing
• Average annual production of 69,000 tonnes of graphite concentrate
• PFS results to enhance ongoing offtake and financing discussions

Click here to read the full IMX Resources Ltd. (ASX:IXR) press release.