Walkabout Resources’ (ASX:WKT) graphite concentrate sales increased significantly during September courtesy of orders to new end customers in China and India.
Two sales orders totalling 800 tonnes came through Walkabout’s sales partner Wogen, with more than 60% of the volume ordered for coarse flake graphite.
CEO Andrew Cunningham says these larger volume sales mark an important milestone for the company, and begins to cement its Lindi Jumbo Mine in southeast Tanzania as a “reliable producer of high-quality graphite concentrate in the minds of end customers”.
As the direct customer, Wogen will pay Lindi Jumbo 80% of the assessed final value of the sales, consistent with its 100% sales and marketing agreement. Lindi Jumbo will receive the remaining balance, less the marketing costs, once the end customers settle with Wogen.
Walkabout Resources, which has a market capitalisation of $70.48 million, expects further sales similar to the latest sales as more products become available from Lindi Jumbo.
Cunningham says Lindi Jumbo remains fully exposed to market prices for its graphite products and as a result, “will benefit from the forecasted cyclical increase in prices in the coming years”.
“We are confident of being able to meet current demand for our product as we ramp up towards nameplate capacity and possible excess beyond that,” Cunningham adds.
During September, Walkabout Resources projected that annual graphite supply needs will be around four times higher than today in 2030, and nine times in 2040. Natural graphite demand is expected to exceed supply next year.
According to Market Index, graphite prices peaked a decade ago and the market has spent most of the past decade in a surplus due to oversupply and weak demand from key industries such as steel and refractories.
Walkabout Resources is a diversified mineral developer and producer focused on its Lindi Jumbo Graphite Mine in Tanzania.
Write to Aaliyah Rogan at Mining.com.au
Images: Walkabout Resources
