Scoping Study Shows Outstanding Investment Case For Collie Graphite BAM Facility

International Graphite Limited (ASX:IG6) (International Graphite or the Company) has released the findings of a Scoping Study for its proposed Collie Graphite Battery Anode Material (BAM) Facility.

HIGHLIGHTS

• New Scoping Study confirms proposed Collie Graphite Battery Anode Material (BAM) Facility would produce high grade battery anode materials for the lithium-ion battery and generate outstanding financial returns.
  
• Flowsheet involves graphite micronising, spheroidising and non-HF chemical purification, to produce uncoated spheroidised purified graphite (USPG), then carbon coating to produce coated spheroidised purified graphite (CSPG).
• Plant is designed in modules and as two parallel lines – project could be implemented in stages. Initially USPG product could be produced with coating facilities added to produce CSPG.
• Key attributes of the Collie Graphite BAM Facility Scoping Study:
  
  • Capable of processing up to 40kt/y of graphite concentrates.
  • CSPG facilities:
    
    • Producing up to 18.6kt/y of CSPG and 17kt/y of micronised by-products.
    • Total capital cost estimate to produce CSPG approximately - US$222M including contingency (AUD$317M).
    • Annualised operating cost including cost of concentrate feed net of micronised by- product credits (assuming sales pricing of US$500-800/t by-product) approximately: US$3,175/t CSPG produced.
    • Pre-tax - pre finance NPV10 (pre-tax discount rate 10%) and IRR approximately: US$626M (AUD$894M) / 41%.
    • Annual average revenue approximately: US$172M and EBITDA: US$100M.
  • USPG facilities only:
    
    • Producing up to 20kt/y of USPG and 17kt/y of micronised by-products.
    • Total capital cost estimate to produce USPG approximately - US$87M including contingency (AUD$124M).
    • Annualised operating cost including cost of concentrate feed net of micronised by- product credits (assuming sales pricing of US$500-800/t by-product) approximately: US$2,029/t USPG produced.
    • Pre-tax - pre finance NPV10 and IRR approximately: US$290M (AUD$412M) / 48%.
    • Annual average revenue approximately: US$95M and EBITDA: US$43M.

“Our expert graphite metallurgists and engineers have applied their collective expertise in graphite metallurgy, process design, flowsheet development, estimation and markets, to present a compelling development pathway for the Collie Graphite BAM Facility. The economics are outstanding and there are many opportunities to improve the cost structure with further testwork.

“The financial modelling of the Scoping Study applies long term forecast pricing for CSPG. Current and forecast natural graphite supply is well below the levels required to meet global decarbonisation goals from the uses of the lithium-ion battery.

“The plant has been designed as two parallel lines and could be implemented in stages, including developing a USPG facility in the first instance before expanding into coating.

“The total capital cost to produce CSPG is estimated at approximately US$222M and its operations are forecast to deliver a pre-tax – pre finance NPV10 of approximately US$626M and IRR of approximately 41%.

“As an initial step, the total capital cost to produce USPG is estimated at approximately US$87M and its operations are forecast to deliver a pre-tax – pre finance NPV10 of approximately US$290M and IRR of approximately 48%.

“We are working with a number of stakeholders in Collie to agree on site selection for the Collie Graphite BAM Facility to accommodate the initial graphite concentrate processing capacity of up to 40kt/y and potential further expansions.

“Whilst the financial forecasts for the Scoping Study are based on the purchase of graphite concentrates from third party sources, it is the intention to integrate our 100% owned Springdale Graphite Project with the development of the Collie Graphite BAM Facility. When we have advanced Springdale to a sufficient level of detail to allow forecasts to be published, we will be able to update the Scoping Study accordingly.

“Springdale is located only 450km by road from Collie and we are seeking to build a streamlined and efficient ‘mine to market’ supply chain in the world’s most reputable and attractive jurisdiction for minerals investment. Australia’s reputation for excellence in mining and minerals processing and our rigorous ESG commitment will provide the highest standard BAM for the world’s lithium-ion battery makers.“

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