Ann: Update to PFS Announcement and Presentation, page-89

Asked for a bit more detail-

The Graphite Creek project in Alaska and the Kookaburra Graphite Project (KGP) in South Australia have detailed their capital expenditure plans and projected production capacities.

Graphite Creek Project:

• Capital Expenditure: The project's 2022 Pre-Feasibility Study (PFS) estimates an initial capital expenditure of approximately $1.24 billion. This includes $571 million for the manufacturing plant and $499 million for mine construction, with additional contingencies bringing the total to $1.24 billion. citeturn0search0

• Production Capacity: Over a 23-year mine life, the project plans to process 22.5 million tonnes of ore with an average grade of 5.6% graphitic carbon (Cg). Peak production is expected to reach about 11,000 tonnes per day. citeturn0search0

Kookaburra Graphite Project (KGP):

• Capital Expenditure:

  • Stage 1: Estimated at $29 million.
  • Stage 2: An additional $24 million, totaling approximately $53 million for both stages. citeturn0search5

• Production Capacity:

  • Stage 1: Production of 11,000 tonnes per annum (tpa) of graphite concentrate.
  • Stage 2: Expansion to 62,000 tpa in the third year. citeturn0search5

Comparison:

• Capital Expenditure: Graphite Creek's initial capital expenditure is significantly higher, reflecting its large-scale integrated operation, including both mining and manufacturing facilities. In contrast, KGP's phased approach results in a lower initial capital outlay, with the flexibility to scale production as market demand increases.

• Production Strategy: Graphite Creek aims for a vertically integrated supply chain within the U.S., encompassing mining, processing, and manufacturing. KGP focuses on a staged development, starting with the industrial graphite market and planning to expand into the battery sector as demand rises.

These differing strategies highlight each project's approach to capital investment and market engagement in the evolving graphite industry.