General Discussions, page-33245

Hopefully my last post has been removed. It focused too much on the MOUs and I see there is better information from RNU to look at, namely the BAM study 20230808-Siviour-Battery-Anode-Material-Study-Results-2588185.pdf which I'll post the highlights in hope it benefits someone else also. Importantly to note, this study supersedes all previous information although I'm not entirely sure how it relates to existing MOUs.

• Post-tax unleveraged NPV10 of A$1.5 billion.
• Post-tax unleveraged IRR of 26%.
• Average annual EBITDA of A$363 million
• PSG gross operating cost of US$1,782 per tonne over the first 10 years and US$1,846 per tonne over 40-year mine life (LOM), including Graphite Concentrate operating cost of US$405 per tonne over first 10 years and US$472 per tonne over LOM
• Estimated capital requirement for initial upstream operation of A$214.5 million is expected to be funded via Renascor’s existing cash balance (A$129 million as at 30 June 2023) and debt facilities
• Phased development plan, commencing with production of Graphite Concentrate before shifting to PSG, is designed to align with graphite market demand and to reduce execution risk prior to the initial downstream capital requirement of A$394.6 million
• Australian Government, through its Critical Minerals Facility, has conditionally approved a loan facility of A$185 million for the development of the BAM Project. In addition, Renascor is progressing discussions with Export Finance Australia (EFA), the Clean Energy Finance Corporation (CEFC) and commercial lenders. Renascor has also commenced discussions with potential project partners, including potential offtakers, regarding equity investments to help further meet the BAM Project’s capital requirements (My note - I read this as Mitsubishi)
• Potential offtake partners include POSCO and Mitsubishi Chemical, each of which have entered into non-binding strategic cooperation and offtake agreements with Renascor
• downstream operation to produce up to 100,000tpa of Purified Spherical Graphite
• PSG demand is projected to increase by 315%, from approximately 380,000 tonnes in 2022 to 1.2 million tonnes in 2030 (according to Benchmark Mineral Intelligence)
• Fastmarkets, has forecasted the PSG price to increase from US$4,150 per tonne in 2024 to US$5,035 per tonne in 2033 (averaging US$4,716 over the ten-year period).
• Renascor expects to sell products directly to large-scale LIB anode manufacturers
• several non-binding memoranda of understanding (MOUs) for the supply of PSG with companies active in the LIB anode sector, including with POSCO, a South Korean conglomerate and the largest anode manufacturer outside of China17, Mitsubishi Chemical, Japan’s largest Chemical supplier and one of the world’s largest anode manufacturers18, Japanese based global trading company Hanwa Co., Ltd19, Jiangxi Zhengtuo New Energy Technology Co. Ltd., a top ten anode producer globally20, and Chinese anode company Minguang New Material21. Renascor is currently in discussion with these and other groups regarding binding offtake termsnext immediate steps include securing binding offtake agreements,
• concluding lender due diligence and commencing early contractor involvement.

and possibly the most important for planned timeline

• Renascor’s development plan under the BAM Study, which commences PSG production in 2026, is

intended to permit Renascor’s PSG supply to enter the market in alignment with rising PSG prices and
to offer Renascor flexibility by incurring the capital expenditure for the initial downstream PSG facility
in alignment with PSG prices increase.

So, yes I'm guilty. RNU has given us timelines and we're possibly fairly called Muppets.

Just to finish this post on a couple of those points again: commences PSG production in 2026 and supplying 100tpa of projected global PSG demand (1.2 million tonnes in 2030)


That's our goal folks.