Graphite Investing

South Star Battery Metals to Spend $80 Million on Phased Graphite Mine Construction in Brazil

Graphite Investing

“In terms of our overall footprint, particularly in Santa Cruz, we’ll have an extremely small carbon footprint, if not a carbon-neutral footprint, by the time we get all the way up to Phase 3,” Richard Pearce, CEO of South Star Battery Metals, said.

South Star Battery Metals' (TSXV:STS,OTCQB:STSBF) phased approach to bringing its graphite mine to production in Brazil will see the company spend a total of nearly $80 million over the next five years, according to CEO Richard Pearce.

“Industrial metal is something (where) commercial relations have to be developed over time. So we’re stepping into it before we really have to spend oodles of cash,” he said. “So Phase 1 is about a $10 million CAPEX, Phase 2 is about C$37 million or C$35 million CAPEX and then Phase 3 is about a C$30 million CAPEX. So in the next four to five years, we’ll be spending C$80 million to spin that up to 50,000 tonnes of concentrate per annum.”

Phase 1 construction of South Star’s Santa Cruz graphite project in Brazil began in June 2022, and the project is expected to be operational by the end of 2023, with cashflow commencing in January 2024.

Pearce also touted the ESG aspects of Santa Cruz, with 99 percent of its power coming from hydroelectric facilities. The company also has the opportunity to develop solar power generation capabilities at the site through a government loan program.

“Within Brazil, you can set up solar facilities on your site. You can plug that energy back into the grid. And it can really knock your energy price down, particularly as it relates to peaking power costs,” Pearce said. The company also plans to use renewable energy for drying concentrates, effectively lowering the operation’s carbon footprint.

Disclaimer: This interview is sponsored by South Star Battery Metals (TSXV:STS,OTCQB:STSBF). This interview provides information which was sourced by the Investing News Network (INN) and approved by South Star Battery Metals in order to help investors learn more about the company. South Star Battery Metals is a client of INN. The company’s campaign fees pay for INN to create and update this interview.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with South Star Battery Metals and seek advice from a qualified investment advisor.

This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.

STS:CC

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