- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Purpose Bitcoin ETF
Soma Gold Corp.
Black Swan Graphene
Silver47 Exploration
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
International Graphite and Comet Agree Funding and Director Appointments
International Graphite Limited (International Graphite) (ASX: IG6) is pleased to announce that it and its major shareholder Comet Resources Limited (Comet) have negotiated a transaction that resolves speculation around the short to medium term security of International Graphite shares owned by Comet.
The arrangements will prevent the short to medium term potential sell down of any of the 40 million International Graphite shares owned by Comet when the stock is released from ASX escrow on 7 April 2024.
International Graphite has agreed to loan Comet $1.5 million and Comet has granted International Graphite the right to appoint a majority of directors to the Comet board.
International Graphite Chairman Phil Hearse said the Directors of both companies were unanimous in their belief that the new arrangements are a win-win for all shareholders.
“International Graphite shares are a major asset for Comet,”Mr Hearse said. “The imminent expiration of the escrow period, in conjunction with Comet’s recent de-listing from the ASX, has fuelled concern that Comet may be compelled to sell down its investment in International Graphite to recapitalise its business.
“Stabilising Comet’s financial position and appointing a majority to the Comet board removes the ‘overhang’ that we believe has contributed to the recent decline in the International Graphite share price and provides the catalyst for a rebound.
“Globally, the macro foundations for our industry are still very strong.
“The transition towards renewable energy sources and energy storage continues to gain momentum. EV sales in the United States hit a record last year, topping 1 million for the first time. According to Cox Automotive, one of the world’s largest automotive services organisations, EV sales for the last quarter of 2023 were up 40% from the same quarter a year before. This aligns with the impressive long-range forecasts from the International Energy Association.
“In addition, China recently made significant policy changes restricting the export of graphite products which has resulted in a 75% decrease in its graphite exports in December 2023. As a result, countries outside of China are actively pushing to secure new sources of graphite.
“International Graphite is extremely well-placed to capitalise on this trend because we are operating in Western Australia, one of the most secure jurisdictions in the world, and in a country firmly allied with the expanding markets of North America, Europe, Korea and Japan.
“We have the strong support of our communities and State and Federal Governments and are on track to build a commercial graphite micronising plant in Collie in 2025. Micronised graphite is the first step in the production of high value battery materials and its markets are extensive and well established worldwide.
“This year, we also plan to undertake more drilling at Springdale, complete the Springdale Definitive Feasibility Study, and continue developing our battery anode plant feasibility studies. Final investment decisions to start construction at Springdale are targeted for the first half of 2025, subject to funding.”
The Comet Loan has a two year maturity and accrues interest at 10% per annum. It includes customary terms for a facility of this kind including change of control protections for International Graphite.
Click here for the full ASX Release
This article includes content from International Graphite, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
International Graphite Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
International Graphite
Investor Insight
International Graphite’s mine-to-market strategy, leveraging its compelling graphite resource, places the company in a strategic position to become an important player in the development and expansion of Western Australia’s battery supply chain.
Overview
International Graphite (ASX:IG6) is a front-runner in the global graphite industry and is aiming to be one of the first new graphite producers.
The company’s vision for a complete mine-to-market supply chain in Western Australia leverages the state’s global reputation as a secure, reliable and technically advanced resource jurisdiction.
Primary focus is the production of active anode materials for lithium-ion batteries to address growing global demand and the forecast shortage looming for allied markets, particularly the US, Europe, Korea and Japan.
Since listing on the ASX in 2022, the company has made rapid headway in the development of two major assets – a planned graphite mine at Springdale and downstream processing facilities at Collie.
The company has been awarded AU$13.2 million in grants from Australian state and commonwealth governments in recognition of its significance to the development of Australia’s sovereign battery minerals capability.
Market demand
Market attention worldwide is swinging to graphite which is essential for global decarbonization and fast becoming one of the most politically contested of all the critical battery minerals.
The world now faces a significant graphite shortage and analysts predict the United States alone will have a shortfall of up to 1.2 million metric tons of graphite by 2030.
Graphite is flexible, conductive, heat and corrosion resistant. For decades it has been used to manufacture everything from ceramics and lubricants to plastics and steel.
It is also a major ingredient in batteries of all kinds, making up 95 percent of the active anode in lithium-ion batteries which are the gold standard for electric vehicles, renewable energy storage and advanced medical, defense and aerospace devices.
Of all the components in a lithium-ion battery, the biggest volume is in graphite. It can take 50 to 100 kilograms of graphite to make a single EV battery – up to 10 times more graphite than lithium.
Currently, China supplies over 80 percent of the world’s processed graphite, so its decision to restrict exports to western customers came as a shock in late 2023.
Western nations are scrambling to find alternative supplies to meet existing commitments – and new supplies to meet the shortage of battery materials forecast in the next five years.
With limited graphite sources of its own, and limited prospects in the near term, the US is leading the way, closely followed by Europe, offering unprecedented incentives to fast-track graphite supply from reliable domestic and allied sources.
Company Highlights
- International Graphite (ASX:IG6) is developing a sovereign mine-to-market graphite supply chain in Western Australia, incorporating a graphite mine at Springdale, near Ravensthorpe on the south-coast, and downstream processing facilities in Collie, 200 km south of Perth.
- Primary focus is the production of active anode materials for lithium-ion batteries to address growing demand and a forecast shortage in allied markets, particularly the US, Europe, Korea and Japan.
- The 100 percent owned Springdale Graphite Project is one of the largest in Australia, with a current mineral resource estimate of 49.3 Mt @ 6.5 percent total graphitic content (TGC).
- Now in the final stages of feasibility and permitting, Springdale will host a multi-decade mine and concentrator operation ensuring a secure, reliable feed of graphite concentrates for value-added processing.
- Less than 10 percent of the tenement area and 20 percent of initial geological targets have been drilled indicating enormous potential for future resource expansion.
- In Collie, the company has established Australia’s first graphite R&D and downstream processing facility comprising pilot scale graphite micronizing and spheroidizing and qualification-scale graphite micronizing equipment. The facility has achieved independent ISO 9001 quality assurance certification, the most globally recognized standard for quality management systems.
- Design is well advanced for a commercial-scale micronizing facility that will supply graphite products for manufacturing, consumer electronics, medical devices, Defense and aerospace applications.
- Australian state and commonwealth governments have awarded grants totalling AU$13.2 million to fast-track the business in recognition of its importance to the nation’s critical minerals capability.
- The company has an expert management team, with proven technical credentials, is committed to rigorous environmental, social and quality standards, and has strong government and community support.
Key Projects
Springdale Graphite Project
International Graphite owns 100 percent of the Springdale graphite project in the established mining centre of Hopetoun/Ravensthorpe, on the south coast of Western Australia.
Springdale is one of the largest graphite deposits in Australia and was named Discovery of the Year in the respected 2023 Prospect Awards.
Following an extensive drilling campaign in 2022-23, the resource estimate increased by more than 240 percent to 49.3 Mt @ 6.5 percent total graphitic content (TGC). This is expected to grow in the future as only 10 percent of the tenement area and 20 percent of initial geological targets have been drilled to date.
Springdale is the site of the company’s planned graphite mine which will provide a consistent and reliable feed of graphite concentrates for downstream processing and give the company full control of its supply chain. A scoping study, released in January 2024, showed the planned open pit operation would be globally cost competitive with a long, multi-decade mine life.
Metallurgical testwork on Springdale concentrates, completed by specialist testing laboratories in Australia and overseas, shows the high-grade, fine flake Springdale ore is ideally suited for the production of battery anode material.
The regional community around Springdale relies heavily on the mining sector and has applauded moves to establish a new mine in their area.
International Graphite’s vision for a complete mine-to-market business is designed to achieve maximum value from its Springdale natural graphite resource and is closely aligned with the Australian government's critical minerals strategy and the Western Australian government's vision to establish new world-class industries in Collie.
Collie R&D and Processing Facility
International Graphite’s Collie R&D and Process Facility is a first for Australia and a key link in the company’s mine-to-market strategy.
Backed by an ISO 9001 quality assurance certificate, the most globally recognized standard for quality management systems, the Collie facility is home to pilot scale graphite micronizing and spheroidizing equipment, thermal purification equipment, and a qualification-scale micronizing plant that is currently producing sample products for assessment by potential customers in the battery materials, Defense, plastics, lubricants, and aerospace industries.
As well as being widely used in industrial applications, and a critical conductive additive in battery cathodes, micronized graphite is the first stage in the production of active anode material for lithium-ion batteries.
International Graphite plans to expand micronizing at Collie to commercial scale by 2025 while progressing the design of its advanced battery anode material manufacturing facilities. The plant design will be tailored to process Springdale graphite concentrates.
Located 450 km by road from Springdale, and close to major export ports, the regional township of Collie is the centre of Western Australia’s electricity generating infrastructure.
Top left: Collie R&D and Process Facility. Top right: Micronizing qualification plant.
Bottom left: Qualification plant in operation. Bottom right: Australian Prime Minister Anthony Albanese inspects the Collie facility.
Management Team
Phil Hearse - Chairman
One of Australia’s leading metallurgists and an authority on graphite project development, Phil Hearse founded International Graphite in 2018 and continues to lead the company’s growth and development. An engineer with more than 40 years of experience in diverse and challenging projects around the world, his extensive career has taken him from operational and technical roles at Broken Hill, Bougainville Copper, Queensland Nickel (QNI) and Gove Alumina to senior executive and managerial positions in engineering and operating companies.
Hearse is the owner and managing director of Battery Limits, one of Australia’s leading graphite metallurgy and process engineering firms. The company has assisted many listed public companies to develop bankable feasibility studies for graphite mines and concentrators and has generated significant intellectual property in downstream processing and knowledge of the end use market. Hearse has an MBA from Hull University UK and a Bachelor of Applied Science in primary metallurgy from the University of SA. He is a fellow of the Australasian Institute of Mining and Metallurgy and a fellow of the Australasian Institute of Mining and Metallurgy.
Andrew Worland - Managing Director and Chief Executive Officer
Andrew Worland is a mining executive and experienced ASX/TSX director with over 25 years in senior finance, corporate, project management and marketing roles in the Western Australian mining sector.
Worland's commodity experience includes exploration, development and operations in lead, zinc, nickel, cobalt, gold, iron ore, molybdenum, copper and uranium. He has a Bachelor of Commerce with a major in finance and marketing from the University of Western Australia and is a qualified chartered company secretary and has achieved Fellow of the Governance Institute of Australia.
David Pass - Non-executive Director and Chief Technical Officer
David Pass has played a key role in the technical development of International Graphite since the company’s inception. A metallurgist with 30 years in the mining industry, he brings a mix of operational processing, process design, project, due diligence skills and management experience including mine operations experience with Barrick Gold.
Pass is chief executive officer of Battery Limits and an acknowledged expert in graphite primary and downstream processing and has led several studies in graphite project development to definitive feasibility level. He holds a Bachelor of Science in metallurgy from Murdoch University and is a member of the Australian Institute of Mining and Metallurgy.
Matthew O’Kane - Non-executive Director
Matthew O’Kane is a senior mineral industry executive and company director with 25 years’ experience in the mining, commodities, and automotive sectors. He has held senior leadership roles in Australia, the US and Asia, in both developed and emerging markets, from start-up companies through to MNC’s. He has served on the board of mining companies in Canada, Hong Kong and Australia, and is currently managing director of Comet Resources (ASX:CRL) and a non-executive director of Azarga Uranium (TSX:AZZ) and Pursuit Minerals (ASX:PUR). O’Kane has been a non-executive director of International Graphite since the company was listed in April 2022.
Robert Hodby – Chief Financial Officer and Company Secretary
Robert Hodby is a finance and accounting specialist with more than 20 years’ experience in the Australian resource and energy sector, including seven years as CFO and company secretary of Kibaran Resources(ASX:KNL), the predecessor to Australian graphite company EcoGraf (ASX:EGR). A member of CPA Australia and member of the Governance Institute of Australia, Hodby specializes in the financial management and administration of public and listed companies at both operational and corporate levels. During his career, he has held numerous executive and project management positions as well as CFO, board and company secretarial roles, with a strong track record in corporate finance, capital raising and international product marketing, particularly in the emerging graphite market.
$4.5M Government Grant Secures Construction Start for Collie Micronising Facility
International Graphite Limited (ASX: IG6) has secured funding to construct the first purpose- built commercial graphite micronising plant in Australia.
HIGHLIGHTS
- $4.5M grant funding agreement signed with the Western Australian Government.
- $2.0M to be applied towards ~3,000 tpa micronising facility to be built in Collie at an estimated capital cost of ~$4.0M (Stage 1).
- Stage 1 is expected to be fully funded to mechanical completion.
- The remaining $2.5M will be applied to expand the facility and at least double capacity (Stage 2).
The Company has entered into a funding agreement with the Department of Jobs, Tourism, Science and Innovation (JTSI) on behalf of the State Government of Western Australia for $4.5 million of the grant announced by the Premier of Western Australia, the Hon Roger Cook, on 22 April 20241 (JTSI Grant).
Managing Director and CEO Andrew Worland said: “We are excited to be pushing ahead with the construction of the new plant at Collie. Establishing a micronising business in Collie has been an important step in our development plans. Critically it will establish the Company as a producer in the graphite industry and build further our technical skills as we progress our Springdale mine to market battery anode material strategy.”
Stage 1 of the JTSI Grant is available to be drawn down progressively over the project construction period as milestones are achieved. The balance of Stage 1 funding is to be met through funding awarded to the Company under the Australian Government Critical Minerals Office grant2, existing cash reserves and additional Company contributions over the construction period, including future R&D rebates.
The balance of the JTSI Grant of $2.5 million will be applied towards expansion of the facility in Stage 2. Ultimately, the Company envisages expanding the Collie Micronising Facility to around 10,000 tpa capacity. It is expected to produce 95% total graphitic content (TGC) and 99% TGC micronised products from graphite concentrates produced at the Company’s 100% owned Springdale Graphite Project, on the south coast of Western Australia, once the mine is in production.
“At those production levels, our Collie facility will be amongst the most significant global producers of micronised graphite outside of China”, Mr. Worland said.
A front-end engineering and design (FEED) study is expected to be completed over the coming months which will confirm the implementation schedule and forecast economics for Stage 1.
The critical path items for the project include local building approvals, construction of new buildings and connection to services, including to the electricity grid, on new development lots adjacent to the Company’s existing facilities in Collie.
Building the project in two stages has been made possible, in part, by the operating experience gained from the Collie Graphite Processing & R&D Facility. Opened in 2022, the exiting facility includes pilot scale micronising and spheroidising equipment and a qualification scale micronising plant.
The facility has been instrumental in optimising equipment selection, vendor assessment, operating conditions and scaling of Stage 1 production capacity to achieve lower unit capital costs than was envisaged in the original 2023 feasibility study.
Figure 1: April 2024 - Inspecting the proposed site for the new commercial micronising plant at Collie, from left, WA Regional Development Minister Don Punch, IG6 Chairman Phil Hearse, Collie-Preston MLA Jodie Hanns and IG6 Managing Director Andrew Worland.
Click here for the full ASX Release
This article includes content from International Graphite, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Lincoln Releases Kookaburra PFS, Outlines Plan to Become Newest Australian Graphite Miner
Lincoln Minerals (ASX:LML) moved closer to its goal of becoming Australia's newest graphite miner with the release of a prefeasibility study (PFS) for its Kookaburra project in South Australia.
The company shared the results on time, saying in September that the PFS was expected this month.
The study outlines two stages of development, and is designed to bring Kookaburra online at a low cost.
According to Lincoln, Stage 1 involves the sale of 10,000 tonnes of graphite concentrate per year, while a Stage 2 expansion in year three will bring graphite concentrate sales to 60,000 tonnes on an annual basis.
“Our staged approach to development will ... provide the necessary cashflow to assist with funding the subsequent larger scale and longer life Stage 2 production," explained CEO Jonathon Trewartha.
The staggered approach is geared at lowering risks, and will allow Lincoln to develop an initial base of customers. The company has observed that buyers are increasingly seeking graphite sources outside of China.
The startup capital requirement for Kookaburra is set at AU$29 million, and its mine life is estimated at 16 years. The asset has a pre-tax net present value of AU$114 million at a 10 percent discount, and a pre-tax internal rate of return of 41 percent. The payback period stands at 2.4 years from the start of Stage 2 and 4.4 years from the start of Stage 1.
The production target underpinning the financial forecasts included in Lincoln's PFS is supported by 11 percent measured resources, 43 percent indicated resources and 46 percent inferred resources.
Kookaburra is located 40 kilometres north of Port Lincoln on the Eyre Peninsula, and is currently Lincoln's main focus.
The company said in this week's release that the next steps for the project include the release of a bankable feasibility study. Lincoln will also pursue government critical minerals incentives programs, as well as approvals, offtake and sales agreements and potential opportunities with strategic partners and investors.
A Stage 1 final investment decision is expected at the end of 2026, with first production in 2027.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
E-Power Resources Inc. Announces Closing of a Second Tranche of Private Placement
E-Power Resources Inc (CSE: EPR) ("E-Power" or the "Company") announces that it has closed a second tranche of the private placement previously announced on September 24, 2024 (the "Private Placement").
An aggregate of 3,950,000 units (the " Units") of the Company were issued in this tranche of the Private Placement at a price of $0.05 per Unit for gross proceeds of $197,500, each Unit being comprised of one common share in the capital of the Company (each a "Common Share") and one-half common share purchase warrant (each a "Warrant"), each Warrant entitling its holder thereof to acquire one additional common share (each a "Warrant Share") at a price of $0.10 per Warrant Share for a period of 60 months from the closing date. (the "Offering").
Net proceeds from the Offering will be used by the Company for general working capital purposes.
The Company paid finders' fee to Pieter Danielsson, who received a cash commission of $8,000. In addition, he received 160,000 broker warrants, with each broker warrant entitling its holder thereof to purchase one common share of the Company at a price of $0.10 and expiring in 24 months.
The securities offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. The securities offered pursuant to the Offering are subject to certain trade restrictions pursuant to applicable securities laws.
About E-Power Resources Inc.
E-Power Resources Inc. is an exploration stage company engaged principally in the acquisition, exploration, and development of graphite properties in Quebec. Its flagship asset, the Tetepisca Graphite Property, is located in the Tetepisca Graphite District of the North Shore Region of Quebec, approximately 215 kilometers from the Port of Baie-Comeau. For further information, please refer to the Company's disclosure record on SEDAR (www.sedar.com) or contact the Company by email at info@e-powerresources.com.
On Behalf of the Company
James Cross
President & CEO
+1 (438) 701-3736
info@e-powerresources.com
Disclaimer for Forward-Looking Information
This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations, or beliefs of future performance are "forward-looking statements". These forward-looking statements reflect the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, which may cause actual outcomes to differ materially from those discussed in the forward-looking statements. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The CSE has not reviewed, approved, or disapproved the contents of this news release.
Click here to connect with E-Power Resources Inc (CSE: EPR), to receive an Investor Presentation
Quarterly Activities Report September 2024
Our vision: International Graphite is developing as Western Australia’s first vertically integrated producer of graphite products for global industrial, manufacturing, technology and battery markets.
Highlights
- Australian Prime Minister Anthony Albanese tours Collie Graphite Processing & R&D Facility
- Collie Graphite Processing & R&D Facility achieves certification to ISO9001: 2015
- Spectacular assay results from diamond drilling at Central1 and Mason Bay2 deposits with intercepts of up to:
- 11.0m @ 14.3% Total Graphitic Carbon (TGC) from 10.4m downhole, including 1.0m @ 21.3% TGC from 13.0m and 3.1m @ 26.5% TGC from 16.0m downhole (SGDD0014)
- 11.1m @ 16.9% Total Graphitic Carbon (TGC) from 23.1m downhole (SGDD0021)
- 13.4m @ 19.2% TGC from 35.3m downhole, including 2.9m @ 31.4% TGC from 38.8m downhole (SGDD0021)
- Latest battery anode testwork further evidences the suitability of Springdale concentrates for active anode material returning yield up to 76% and purity of 99.99% LOI.
International Graphite continues to rapidly advance as Western Australia’s first fully integrated mine-to- market producer of graphite products to meet global demand for battery anode material (BAM) and a wide range of industrial, manufacturing and technology applications.
The Company owns 100% of the Springdale Graphite Project, near Hopetoun, and has established the Collie Graphite Processing & R&D Facility that includes a pilot scale graphite micronising and spheroidising plant and customer qualification scale micronising plant. This is the first stage in the Company’s plans to establish comprehensive downstream graphite processing including BAM facilities in Collie.
Springdale Graphite Project
The Springdale Graphite Project is a mineral resource of global significance for the high growth lithium-ion battery market and industrial, defence and manufacturing sectors.
During the quarter, spectacular assay results were received from a ten-hole PQ diamond drilling program at the Central and Mason Bay deposits. The assays showed more high grade, thick, near surface intercepts of graphite mineralisation. The program focussed on geotechnical drilling, to inform mine planning and permitting, and to provide metallurgical data for concentrator plant process design.
These findings reinforce that Springdale has the key attributes needed for a low-cost mining operation, namely shallow overall deposit depth, requiring limited drill and blast, good grades, oxidised material for processing, single product lines – and all in a tier one mining jurisdiction.
With only 25% of Springdale’s identified targets drilled to date, and much of the tenement area unexplored, the project offers expansive potential for future mineral resource growth.
Click here for the full ASX Release
This article includes content from International Graphite, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Quarterly Report September 2024
This article includes content from Altech Batteries, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
NextSource Materials
Overview
Vision Blue Resources Ltd, a battery commodity/resource-focused investment company founded by Sir Mick Davis (former CEO of Xstrata Plc), made a significant strategic investment in NextSource Materials in 2021 to fully fund the construction of its Molo graphite mine in Madagascar. Production has begun, with Phase 1 mine operations currently undergoing ramp up to reach its nameplate production capacity of 17,000 tpa of graphite concentrate.
According to UK’s Benchmark Minerals Intelligence, battery demand for flake graphite is expected to grow between 5-7 fold by 2035. This dramatic spike in demand is due to graphite’s critical role as the anode material in lithium-ion batteries. Electric vehicle batteries contain between 60 to 90 kilograms of graphite per battery. By volume, graphite is the largest raw material in a lithium-ion battery. As the electric vehicle market continues to grow, investing in the companies that produce these valuable battery materials and have first-mover advantage can provide significant value-creation and exposure to this expanding market.
NextSource Materials Inc. is a battery materials development company based in Toronto, Canada that is intent on becoming a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals.
The Company’s Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite.
The Company is also developing a significant downstream graphite value-add business through the staged rollout of Battery Anode Facilities capable of large-scale production of coated, spheronized and purified graphite for direct delivery to battery and automotive customers, outside of existing Asian supply chains, in a fully transparent and traceable manner.
Graphite in Madagascar is renowned for its quality and flake size. For almost a century, Madagascar has been exporting flake graphite to the world but in limited quantities. Molo will catapult Madagascar to a top 5 graphite producing country. With its Green Giant vanadium project also within close proximity to the Molo project, NextSource Materials controls two very strategic sources of battery materials at one source.
For further information about NextSource visit our website at www.nextsourcematerials.com or contact us a +1.416.364.4911 or email Brent Nykoliation, Executive Vice President, Corporate Development at brent@nextsourcematerials.com or email Craig Scherba, President and CEO at craig@nextsourcematerials.com.NextSource’s 100 percent owned and fully permitted Molo graphite project drew investor attention for its large, high-quality flake graphite deposit and unique SuperFlake graphite concentrate. Sir Mick Davis’s strategic investment of US$29.5 million in NextSource in May 2021 provided the entire funding to bring the Molo Graphite mine into production.
“This investment in NextSource underlines our belief that the massive secular change in demand for critical battery material resources is not being met by an appropriate supply-side response, largely as a result of capital constraints,” Davis stated.
The company utilized an all-modular build approach to construct the Molo mine. Phase one production will be approximately 17,000 tonnes per annum over the first two years with further planned expansion in year three.
The company made its first bulk container shipment of SuperFlake® graphite in October 2023 to its downstream technical partner's battery anode facility to be processed into spheronized, purified graphite (SPG) that will then be further processed into coated SPG (CSPG) as part of large scale, multi-step verification tests being conducted by automotive EV supply chains in South Korea and Japan.
The company has completed its first commercial shipments of SuperFlake® graphite concentrate from its Molo Graphite Mine (the "Molo mine") in southern Madagascar. Full container loads of high-quality, coarse flake graphite concentrate were exported from the Port of Tulear, Madagascar to Germany and to the United States of America (USA) under existing offtake agreements. These initial container shipments of SuperFlake® graphite are destined for key demand markets for higher value graphite products, including refractory materials and graphite foils for consumer electronics and fire-retardant applications.
In April 2021, the company finalized an exclusive technical partnership with a Japanese company that provides SPG to leading Japanese anode and battery makers, who in turn supply the Tesla and Toyota supply chains. NextSource has secured the licensing of a well-established process to produce SPG that is currently used in EV supply chains, as well as a coating technology that has been verified by a major Japanese coating company to produce CSPG. The company has also executed a commercial offtake agreement with thyssenkrupp Materials Trading GmbH, an international trading and services company headquartered in Essen, Germany, for the sale of 35,000 tpa of the SuperFlake® graphite products.NextSource’s other highly prospective project, the Green Giant vanadium project in Madagascar, stands out for its sediment-hosted deposit profile, which is only seen in approximately 5 percent of total vanadium occurrences.
The company believes strongly in vanadium’s potential market growth with the popularization of VRBs as a leading technology for green energy applications. Since project acquisition in 2007, NextSource has spent over US$20 million on the exploration and development of the Green Giant.
NextSource’s management team and directors bring decades of professional mine development and capital markets expertise. NextSource has assembled an impressive team with a proven track record in mine operations and building shareholder value. This positions the company for significant growth and economic success as it strives to meet the world’s increasing demand for graphite.
Company Highlights
- The Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite. The Molo mine has begun production, with Phase 1 mine operations currently undergoing ramp up to reach its nameplate production capacity of 17,000 tpa of graphite concentrate.
- Vision Blue Resources, a fund headed up by Sir Mick Davis that invests in strategic battery materials, is NextSource’s largest shareholder.
- Sir Mick Davis is NextSource’s chairman and this mining heavyweight brings years of valuable experience in mine development and operations expertise.
- NextSource will complete a feasibility study in November 2023 for its Phase 2 expansion of an additional 150,000 tonnes in order to meet the significant forecasted demand for graphite. Timing for Phase 2 construction is expected to take 18 months to complete from a final investment decision and when funding is in place, which would be predicated on securing an OEM offtake.
- NextSource is one of extremely few graphite companies to have secured long term offtakes with reputable partners. The first is for the sale of 20,000 tonnes per annum with a prominent Japanese trader that supplies the Tesla and Toyota battery supply chains, and the second is with thyssenkrupp Materials Trading for the sale of 35,000 tonnes per annum of SuperFlake® graphite concentrate.
- The Company is also developing a significant downstream graphite value-add business through the staged rollout of Battery Anode Facilities (BAFs). These BAFs will be capable of large-scale production of spherical, purified graphite (SPG) and coated SPG (CSPG) using established processing expertise for direct delivery to battery and automotive customers, outside of existing Asian supply chains, in a fully transparent and traceable manner. Construction of its Phase 1 BAF in Mauritius is expected to be completed by the end of 2024.
- The Company also owns the Green Giant vanadium project, an advanced stage NI 43-101 resource that is one of the world’s largest known vanadium deposits. The sediment-hosted geophysical profile of this vanadium deposit is well-suited for vanadium redox batteries, which are a leading battery technology for large scale energy storage applications.
- NextSource has completed its first commercial shipments of SuperFlake® graphite concentrate from its Molo Graphite Mine in October 2024.
- NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol “NEXT” and on the OTCQB under the symbol “NSRCF".
Key Projects
Molo Graphite Mine and Project
The Molo graphite project ranks as one of the largest-known and highest-quality flake graphite deposits in the world. The property is over 62.5 hectares, sits in the Tulear region of Southwestern Madagascar and is located 11.5 kilometers east of the town of Fotadrevo.
The Molo mine has begun production, with Phase 1 mine operations currently undergoing ramp up to reach its nameplate production capacity of 17,000 tpa of graphite concentrate.
Total combined graphite resources at Molo are 141.28 million tonnes at 6.13 percent total graphitic carbon, with a contained ore reserve of 22.44 million tonnes at 7.02 percent graphitic carbon. The company has delineated over 300-line kilometers of continuous graphite mineralization at surface. NextSource has virtually an unlimited supply of graphite it can bring to the market in lockstep with demand.
NextSource has superior flake size distribution and well above the global average. The Molo asset is relatively unique for having almost 50 percent premium-priced large and jumbo flake graphite and can achieve up to 98 percent carbon purity with simple flotation alone. Molo SuperFlake® has been verified by end-users and meets or exceeds all criteria for the top demand markets for flake graphite; anode material for lithium-ion batteries, refractories, graphite foils and graphene inks.
NextSource has completed a series of feasibility studies on the project since 2015, with a planned updated feasibility study for phase two mine expansion.
For all details and assumptions relating to the parameters of the mineral resource, reserve estimates, and data verification procedures for phase one of the Molo Project, please refer to the company’s website at nextsourcematerials.com.
Green Giant Vanadium Project
The 100-percent-owned Green Giant vanadium project is an advanced-stage exploration project located in South-central Madagascar and is one of the world’s largest known vanadium deposits. The project leverages ideal mining conditions and is in close proximity to NextSource’s Molo graphite mine.
The Green Giant Project is a rare type of vanadium deposit because it is sediment-hosted. No magnetic metals are associated with Green Giant’s vanadium, making the project ideal for producing high-purity vanadium pentoxide, a key material in vanadium redox batteries.
The property’s NI 43-101 compliant resource measures an estimated 60 million tonnes of vanadium pentoxide at an average grade of almost 0.7 percent at a 0.5 percent cut-off.
Management Team
Hanré Rossouw — President and Chief Executive Officer
Hanré Rossouw joins NextSource from his role as executive director and chief financial officer of Sasol Limited with extensive experience in the global natural resources industry over the last 25 years. A British and South African national, Rossouw has held senior positions in leading global mining and investment companies where his roles involved business development, M&A, capital markets, asset management and growth optimization. Rossouw was chief financial officer and executive director of Royal Bafokeng Platinum between October 2018 and March 2022 having joined after 5 years as a portfolio manager at Investec Asset Management. He was latterly CFO of the Alloys Division having been part of the small head office team which completed numerous international transactions and associated fundraisings as part of a corporate development plan which grew the market capitalization fivefold during his tenure. Rossouw worked at both Accenture and as a project manager with De Beers Group having started in the mining industry as a metallurgist with Anglo American in 1998. He studied chemical engineering at Stellenbosch University and Economics at the University of South Africa as well as completing an MBA at the University of Oxford's Said Business School.
Brent Nykoliation — Executive Vice-president
Brent Nykoliation joined the senior management team at NextSource Materials as vice-president in 2007 and leads the development and implementation of strategic partnerships and offtakes with supply chain customers. In addition, Nykoliation oversees all communications with institutional investors and analysts for the company.
He brings over 20 years of senior management experience, having held marketing and strategic development positions with several Fortune 500 corporations in Canada, notably Nestlé, Home Depot and Whirlpool.
Nykoliation holds a Bachelor of Commerce with Honours degree from Queen’s University.
Marc Johnson — Chief Financial Officer
Marc Johnson is a bilingual senior executive with over 20 years of business experience, including ten years at public corporations as CFO, VP of corporate development and other financial management positions, and ten years in capital markets in investment banking and equity research. Johnson is a chartered financial analyst and a chartered professional accountant and joined as CFO in October 2015. He also holds a bachelor of commerce (finance) from the John Molson School of Business at Concordia University in Montreal.
Jonathan (Johnny) Velloza- Interim Chief Operating Officer
Jonathan Velloza has a wealth of technical and operating experience in the mining industry spanning 30 years during which he managed operational optimization processes and large capital expansions across a range of commodities and in many jurisdictions. Velloza was previously Deputy CEO and COO of Gem Diamonds and CEO of Chemaf. Prior to this, he was with BHP Western Australia Iron Ore where, from 2013 to 2015, he was general manager at the largest iron ore mine in the BHP portfolio, leading a number of successful operational efficiency programs. He also acted as a senior exploration manager in Zambia and in Chile for BHP from 2011-2013, operations manager at AngloGold Ashanti from 2009-2010 and held numerous managerial positions at De Beers from 2001-2009.
Velloza holds a Bachelor’s degree in Mining Engineering from The University of Johannesburg and a Bachelor’s degree in Business from The University of South Africa.
Danniel Stokes - VP, Special Projects
Daniel Stokes joined NextSource in 2022. During his career, he has been responsible for providing project management support across a diverse portfolio of projects in mining, infrastructure, and nuclear industries; developing tools, implementing best practices and mentoring apprentices. Stokes holds degrees in engineering and business and has a qualification in project management from the Association for Project Management.
Markus Reichardt - VP, Sustainability
Markus Reichardt joined NextSource in 2023 and brings a practical understanding of integrating ESG into all stages of the project cycle based on a 25 year track record in operational, senior corporate and advisory roles in the resources, agricultural and renewables sectors across the developing world.
Reichardt is responsible for driving the Group’s safety, health, environment, social, climate change and quality performance and initiatives.
Reichardt is a former corporate environmental manager of AngloGold and holds degrees in history and restoration ecology.
Wilhelm Reitz - General Manager, Molo Mine
Wilhelm Reitz is a mine management professional with 28 years of experience in the global mining sector, with the last 11 years focussed on critical minerals and in developing technologies through design, engineering, and research on graphite. Reitz held senior management roles with AfriGold in Senegal and West African Diamonds in Sierra Leone and Guinea. Prior to joining NextSource, he was involved in developing and managing graphite mines in Madagascar for Stratmin Global and Greenwing Resources. Reitz holds a BSB Diploma in Leadership and Management and studied with AIM in Australia, faculty of management.
Lydia Boarlaza - Country Manager, NextSource Materials
Lydia Boarlaza joined NextSource as Country Manager in January 2021 and has had extensive management experience in the Madagascar mining sector over her career. She has served in general manager and resident manager roles for various companies including Madagascar Consolidated Mining S.A., Madagascar Oil S.A., Avana Group, Hunt Oil Madagascar, and Shell Exploration & Development Madagascar BV. She is a member of the board of directors of Madagascar Chamber of Mines, member of the National Committee within the EITI Madagascar, and member of the Women in Mining and Resources Association in Madagascar.
Board of Directors
Sir Mick Davis — Chairman
Sir Mick Davis is the CEO of Vision Blue Resources and a highly successful mining executive accredited with building Xstrata plc into one of the largest mining companies in the world before its acquisition by Glencore plc. Before listing Xstrata on the LSE as CEO he was CFO of Billiton plc and Chairman of Billiton Coal which he joined from the position of Eskom CFO. During his career in mining, he has raised over US$40bn from global capital markets and successfully completed over US$120bn of corporate transactions, including the creation of the Ingwe Coal Corporation in South Africa; the listing of Billiton on the LSE; the merger of BHP and Billiton; as well as numerous transactions at Xstrata culminating in the sale to Glencore plc. Sir Mick Davis is a chartered accountant by profession and holds an honours degree in commerce from Rhodes University, South Africa and an honorary doctorate from Bar Ilan University, Israel.
Ian Pearce – Director
Ian Pearce is the former CEO of Xstrata Nickel, and was the former COO of Falconbridge Limited, which was acquired by Xstrata Plc in 2006. Xstrata Plc’s acquisition of Falconbridge was one of the largest mining takeovers globally and one of the largest takeover bids in Canadian history. Pearce was also a founding partner of X2 Resources who, along with Sir Mick Davis, made up the team of six ex-Xstrata executives who formed the mid-tier diversified mining and metals company. He currently serves as a director for several global companies in the mining and metals, energy, and sustainability industries. Pearce previously served as chair of the Mining Association of Canada and chair of the Nickel Institute. He holds a BSc from the University of the Witwatersrand, South Africa and an HNDT in Mineral Processing from the University of Johannesburg, South Africa.
Craig Scherba — Director and Chief Development Officer
Craig Scherba was appointed president and CEO in September 2012 and has been a director since January 2010. Previously, Scherba served as vice president of exploration of the company, since January 2010. Scherba was a managing partner for six years with Taiga Consultants, a mining exploration consulting company. He has been a professional geologist since 2000, and his expertise includes supervising large Canadian and international exploration programs. Scherba was an integral member of the exploration team that developed Nevsun Resources’ high-grade gold, copper and zinc Bisha project in Eritrea. He served as the company’s country and exploration manager in Madagascar during its initial exploration stage, discovering both the Molo Graphite and the Green Giant Vanadium deposits.
Brett Whalen — Director
Brett Whalen has over 20 years of investment banking and M&A expertise, spending over 16 of those years at Dundee Corporation. During his tenure at Dundee, Whalen was directly involved in completing approximately $2 billion in M&A deals and helped raise over $10 billion in capital for resource sector companies. While a vice president and portfolio manager of Goodman & Co., he oversaw the investment of $6 million into NextSource, enabling the company to achieve key technical milestones, notably the completion of its July 2017 Phase One Feasibility Study and the concept and design of the whole modular build approach NextSource will be utilized for construction of both Phase One and Phase Two of the Molo mine. Whalen has extensive knowledge of both graphite and vanadium and the general battery materials industry.
Whalen has held board seats of several TSX-listed and privately held companies and holds a BA (Honours) degree in Economics and Finance from Wilfrid Laurier University.
Christopher Kruba — Director
Christopher Kruba is vice-president and legal counsel to Nostrum Capital Corporation and several related corporations that are part of the Toldo Group. The Toldo Group is headquartered in Windsor, Ontario and is composed of several privately held corporations in Canada and the United States, some of which have large manufacturing operations in diversified sectors and others that are involved in active and passive investments across capital markets throughout North America, Europe and Africa. In addition to his responsibilities as counsel to the Toldo Group, Kruba serves as corporate secretary to all the companies, is a member of the group’s investment committee and serves on the board of directors of many of the companies.
Latest News
International Graphite Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Latest Press Releases
Related News
TOP STOCKS
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.