Magnis Resources Announce Nachu Graphite Bankable Feasibility Study Finalized

Magnis Resources (ASX:MNS) announce the results of its Bankable Feasibility Study (BFS) for its 100% owned Nachu Graphite Project in Tanzania.
As quoted in the press release:

The BFS highlights the exceptional economic returns and low technical risk of the Nachu Graphite Project. These characteristics are driven strongly by the high quality size, purity and crystal structure of the contained graphite flake in the Nachu deposit.

• Confirms outstanding projected returns of the Nachu Graphite Project
• Post tax NPV10% of US$1.69 billion with an internal rate of return at 98%
• Pre-production capex of US$269 million delivers a 14 months payback period
• Nameplate capacity of 240ktpa graphite concentrate (avg 220ktpa LOM)
• Reserves support initial 15 years of operation
• Significant high grade resource conversion potential
• Operating cost at US$502/t (FOB Mtwara) over the first 5 years (US$559/t LOM)
• Product basket price of US$2,350/t driven by coarse flake size (>40% above 300 micron) and exceptional concentrate purity (>99% TGC for -300 micron product)
• High purity delivered from  solely    flotation      and       without   chemical purification
• Targeted to high growth technology applications including lithium ion batteries
• Advanced offtake and project finance discussions
• Sedgman working towards a fixed price turnkey solution

Magnis Resources CEO, Frank Houllis, stated:

The release of the BFS is another important milestone towards the development of the Nachu Graphite Project. It confirms that the project has outstanding projected financial returns. The BFS also details how premium graphite concentrate products of exceptional size and purity can be generated using low cost flotation processes with an exceptionally small environmental footprint. These products are targeted into fast growing graphite markets such as the lithium-ion battery sector and the BFS firmly demonstrates the commercial viability of the Nachu Project to potential end users.
Today’s announcement coupled with ongoing discussions with potential off-takers, is set to support the case for significant investment to be made into Nachu via debt markets. Magnis wishes to thank all the parties involved in the delivery of the BFS, including the Tanzanian government agencies and our shareholders for their ongoing support.

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