Total Graphite (LSE:TGR) will update the Pre-Feasibility Study for a US-based lithium-ion battery anode PSG processing facility originally acquired from Waratah in April 2023.
The move supports the specialist flake graphite producer’s strategy to pair the Montepuez Graphite Project in Mozambique with downstream anode capacity to create a vertically integrated pathway from mine to battery anode.
The 2017 US Anode PFS envisaged 20,000 tonnes per annum of 99.99% PSG plus 20,000tpa recarburiser, a capital cost of US$48m, an NPV of US$377m at a 10% discount, an IRR of 76.5% and a project payback of roughly 1.5 years, with the facility sited in Reno, Nevada.
Combined in 2017 with the Montepuez DFS the studies produced a consolidated NPV of US$524m, consolidated cash generation of US$2.37bn and a projected three-year payback over a 30-year life.
Total Graphite said it will commission updated feasibility studies reflecting current PSG and concentrate pricing, an optimized Montepuez mine plan, updated capital and operating costs and further metallurgical work.
The company said it will pursue offtake discussions, noting 2018 offtakes covered 40% of the initially planned 50,000tpa Montepuez module, and will engage government programmes for potential grant and financing support.
The board will develop a capital plan that may include debt, equity, strategic partners, offtake prepayments and government grants.
"The combination of a fully permitted Montepuez mine with a US PSG anode facility offers a compelling route to a vertically integrated graphite business and value for shareholders," Arun Somani, CEO, said.
