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.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.