Evening AX-E,
When you dropped by earlier this year your detailed questions were well received and answered in full on the general discussion thread, I believe your questions would have been better received on the general discussion thread this time around also, peculiar that a new "Headline Grabbing" thread was createdSometimes it isn't the words you utilise, but how you go about it that makes all the difference. Personally I think the reception you received matched the way you went about it
If you do drop by in 3, 6 or 12 months time again, just chuck your comments on the general discussion thread, there is no need to create a new thread every time a potential holder has a legitimate query, we don't need any peacocks and we certainly don't need to be following 50 different threads
Do we know what the current updated study is contemplating as its increase to planned production capacity for stage 1?
David has touched on this question in every presentation and major announcement the company has delivered over the previous year. The 2019 / 2020 Studies model a PSG run rate of 28Ktpa, Renascor currently has MoU's for 60Ktpa and is currently completing feasibility studies that will stage the project to potentially expand upon that 60Ktpa (Emphasis on Staged Expansions). No "Cap" or Final Run Rate Number has been provided to date, reading between the lines a Staged approach is likely to result in +60Ktpa, but we will have to await the optimised BAM study in due course
What are the current total capital costs for stage 1?
The CAPEX for Stage 1 was provided in the 2020 Study available on the homepage of the company website. The updated stage 1 CAPEX will be provided in the upcoming Study, if the company decides to build a larger concentrate and/or downstream plant in Stage 1, then naturally the initial Capex is going to increase
What funding has already been conditionally secured (above the A$185m loan facility from Export Finance Australia) to fund this?
The Company has a cash position as of the last quarterly in excess of $70 million, in combination with the $185m loan facility from EFA under the Critical Minerals Fund would provide Renascor with $255 million, which well exceeds the 2020 Capex requirement.
Following the completion of the soon to be released feasibility study (lets wait until it is released before we jump our guns and deal with what ifs or buts), the company has levers to pull to obtain increased capital if they do decide to build a larger Stage 1 from the get-go.
In addition to the existing financial commitment made from EFA (Managed by the Department of Trade, Tourism & Investment), Renascor has secured potential Further Low Interest Debt from the Clean Energy Finance Corporation (Department of Energy and Emissions Reduction) as announced in March 2021.
I know it is subject to a feasibility study now but has Company provided any indication on what the numbers for proposed Stage 2 look like? ie. Production rates, NPV, capex, Life of Mine?
Yes you are correct, it is all subject to the release of the optimised BAM Study that will be announced to market in due course
If you manage to get ahold of the NPV / CAPEX / EBITDA figures prior to the release to market (and that information enables you to trade on it prior to being made public), That is market sensitive information that would earn you a "1 way ticket to Azkaban" for any of you Harry Potter Buffs out there
I see the June 2020 project study resulted in an NPV(10) of US$499m (~A$770m at current exchange rates) based on stage 1 production of 28k tpa of PSG
There are a number of assumption variables that will be updated in the soon to be released BAM Study that will enhance the financial metrics than those published in 2019 / 2020 including:
- Locked cycle flotation tests that achieved graphite recovery of up to 94.5%, as compared to 91.0% in the Siviour DFS
- Commercial-scale downstream milling trials that achieved spherical graphite yields from in excess of 65% (versus the 50% yield adopted in the previous BAM Study)
- Pilot trials conducted at an independent commercial graphite facility that achieved graphite purities of up to 97.5% total carbon with graphite recovery of 93.2%11. This compares favourably to the Siviour DFS, which adopted average purities of approximately 94% total graphitic carbon
- PSG Production in excees of the previously planned 28Ktpa, Renascor currently has MoU's for 60Ktpa, far outstripping previously planned capacity (Important to note the resource and planned infrastructure is not the bottleneck in designing the project, the Optimised BAM study will assess the appetite for demand and design and stage a project that meets customer demand)
