Long Term Commitment on Vein Graphite Supplies Feedstock to de-risk graphene growth strategy First Graphite (ASX:FGR) is pleased to announce a long-term supply agreement with a third party for high-grade Sri Lankan vein graphite. Highlights • Security of supply enhances the ability of the Company to ramp-up production of graphene in line with expanding market demand • A second shipment, of 40 tonnes, represents part of long-term supply arrangements. This second shipment is in Colombo port and ready for shipment. • Vein graphite supply sourced at a discount to market prices. • Third party feedstock will augment what is to be produced by FGR’s own shafts Graphite Feedstock for Graphene Production FGR is pleased to announce it has entered into a commitment under which it has a guarantee of vein graphite for a two-year period, for up to 1,000 tpa. This feedstock will augment the supplies that will come from FGR’s own mining operations. Having established an ability to produce high quality graphene at low cost, in bulk volumes, the Company is conscious of the need to improve the certainty of vein graphite to be used as feedstock. A number of potential customers are currently being supplied with graphene samples for testing in their manufacturing processes for graphene enhanced products. The Company needs to ensure that it can meet any orders that may come from this test work. Hence, the importance of the supply off-take agreement. Increasing Importance of Technologies to FGR As industry is becoming more aware of First Graphite’s unique position in the ability to supply high quality graphene at competitive prices, we are being approached by an increasing number of parties that are seeking reliable supplies of graphene to advance applications. Some of these parties have rights to technological advancements and intellectual property that they are prepared to offer First Graphite, to partner them in their commercialisation. Directors expect that opportunities in this area will become increasingly important to the future development of the Company, offering growth potential well in excess of what could be achieved as a supplier of vein graphite alone. It is important that the Company positions itself as more than just a raw material supplier. First Graphite will make announcements on progress on this business development front when agreements are finalised. Managing Director, Mr Craig McGuckin said “We are pleased to be able to have secured this commitment to our supply chain. Together with our own feedstock which will come from our own Pandeniya and Aluketiya projects we are ensuring we have a secure supply chain for the growing interest in our graphene production strategy
FGR Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
