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.

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.