IG6-International Graphite Limited today closed up 11% to finish at 21c on $60k stock traded. There was no news out today but a fortnight ago they announced definitive feasibility study (DFS) results for its 4Ktpa graphite micronising facility located in Collie, WA.
IG6 has already demonstrated its ability to produce micronised product at pilot scale from its existing facilities, qualification-scale micronising processing equipment is due for delivery and installation in June.
The average operating cost is estimated at US$1,980 per tonne for micronised product with the average sales prices currently exceeding US$3,000 per tonne, so plenty of meat on that bone still.
The plant has an installed capital cost of $12.5m, it is expected to be operational in Q3 this year.
No mucking around for Phil, Andrew & OKie Dookie whom are all on the board and on this list too I might add - not sure if any will read it but reckon OKie Dookie won't miss it.
The night before the IPO, we mentioned them in ourWhat's Doing sectionin much more detail which you can find on the link below, all still very relevant but far more advanced than back then.
Some details on its recent DFS results are listed below:
DFS Supports Graphite Micronising at Collie with Cashflow in 18 Months
HIGHLIGHTS
A new definitive feasibility study (DFS) supports plans for a A$12.5m graphite micronising plant at Collie.
The plant will be one of the first of its kind in Australia and is expected to be operational in Q3-2024.
Micronising is the first step in the production of battery anode material (BAM) and has its own industrial markets.
Operating costs for micronised products average US$1,980 per tonne with current sales pricing exceeding US$3,000 per tonne.
Early product sales will generate brand recognition, market credibility and processing experience while growing a market for future micronised fines, a by-product from production of spheroidised graphite in BAM production.
International Graphite Limited has released a DFS demonstrating the technical, financial and sales potential of building and operating a nominal 4,000tpa graphite micronising facility in Collie, Western Australia.
The plant, which could be installed in mid-2024 and operational in Q3 2024, would be one of the first of its kind in Australia.
The DFS has been completed to an Association for the Advancement of Cost Engineering (AACE) Class 3 level of accuracy by BatteryLimits Pty Ltd.
The qualification plant will be used to produce material for customer qualification and acceptance commencing in Q3 2023 and to confirm a final investment decision on the commercial scale operation.
Managing Director and CEO Andrew Worland said a low capex graphite micronising facility would enable the Company to generate early cashflow as it continued building a fully integrated battery anode material capability, with its planned mine at Springdale and downstream processing at Collie.
"Strategically, a commercial micronising plant will help us launch into the graphite marketplace, build brand recognition, and develop operational skills in the milling phases of the future BAM production line," Mr Worland said.
"Micronised graphite is the critical first stage in the production of BAM and also a by-product from the graphite spheroidising process - building a market for it will significantly enhance our future BAM operations.
"There is also widespread demand for micronised graphite, as a cathode additive for lithium-ion batteries, and in industrial markets for its application in lubricants, engineered products, polymers and plastics.
"Establishing a commercial operation is the next step in building a new and significant international business in Collie that will play a critical role in battery supply for global decarbonisation.
"We are extremely pleased with the leadership and support the Western Australian Government is providing to help transition the Collie economy and assist new businesses, like ours, to establish there."
CRL Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
