International Graphite (ASX:IG6) has completed a front end engineering design (FEED) study which confirms the “strong” financial viability of the planned Collie Micronising Facility in Western Australia.
The FEED study outlined Collie to produce 4,000 tonnes per year of micronised graphite, achieving $14.1 million per year of average sales revenue.
Collie, which is targeted to expect operations towards the end of 2026, will also have a capital cost of $6.3 million including the expansion infrastructure.
International Graphite, which has a market capitalisation of $10 million, says over a 20 year period, Collie will have a pre-tax net present value of $25.8 million with an internal rate of return of 43%.
On the expansion front, the production at Collie is expected to increase to 7,500 tonnes per year of micronised graphite, achieving an average annual sales revenue of $28 million.
As a result of the expansion option, the additional capital cost is forecast to be $1.7 million.
CEO Andrew Worland says the implementation and progressive expansion option would rank the company as an “international force in the industrial graphite market”.
“We believe the key to advancing graphite projects is through the control of value-adding industrial and battery anode downstream processing facilities,” Worland says.
“Our goal is to develop markets and generate early cashflow that will assist in the financing of our Springdale Graphite Project and mine to market strategy. We see the Collie development as a first step in the build-out of our Australian and international downstream industrial facilities.”
The Collie facility is the centre of International Graphite’s research and development program for battery anode material and will use third-party fine flake graphite as feedstock until the Springdale graphite resource comes online.
International Graphite is focused on developing a new source of battery anode graphite in Western Australia to support the global transition to clean energy.
Write to Aaliyah Rogan at Mining.com.au
Images: International Graphite
