PERTH OFFICE

945 Wellington Street,
West Perth, WA 6005,
Australia.

E: info@gtgraphite.com.au
T: +61 8 9322 7600
F: +61 8 9322 7602

E: info@batteryminerals.com.au

Feasibility Study

PREFEASIBILITY STUDY (PFS)

A summary of the PFS for the company’s SPG processing facility can be found below:

  • Total NPV – US $377.1 million
  • Annual production – 20,000 tonnes
  • Life of project gross revenue – US$4,904 million
  • Life of project net revenue – US$1,558 million
  • Life of project total costs – US$3,345 million
  • Capital expenditure[i] – US$48million
  • Project payback – 1.5 years

[i] Cash flow excludes interest, tax, depreciation and amortisation

CONSOLIDATED MONTEPUEZ GRAPHITE PROJECT DFS AND PFS

Key outcomes of the consolidated Montepuez Graphite Project DFS and PSG PFS from Montepuez concentrate include a consolidated Net Present Value (NPV) of US$524 million over a 30 year project life, with a payback period of 3 years.

Summary of consolidated Montepuez Graphite DFS and PFS on PSG outcomes
Project life years (1) 30
Annual concentrate production tonnes 100,000
Annual Purified Spherical Graphite production (tonnes of 99.99% ) 20,000
Annual recarburiser product production 20,000
Consolidated total revenue US$7,120 million
Consolidated cash generation US$2,368 million
Consolidated capital cost estimate (pre-production) (2) US$174M
Average annual EBITDA US$84 million
Project payback period years 3 years
LoM graphite concentrate assumed basket price US$798/t
LoP assumed price of 99.99% PSG US$7,500/t
LoP assumed price of recarburiser by-product US$700/t
NPV (at 10% discount rate) before interest, tax and D&A US$524 million
IRR 36.2%

Notes to table

  1. See the Mineral Resources and Ore Reserve Update released by the Company to ASX on 15 February 2017
  2. Establishment Capital requirements

PFS ON LITHIUM ION BATTERY ANODE PSG FROM MONTEPUEZ CONCENTRATE

Anode material (PSG) found in lithium ion batteries is generally purified using harsh chemicals and acid, typically by toxic hydrofluoric acid. BAT has opted to use high temperature purification methods, powered by green energy (hydroelectricity) as an environmentally friendly and socially conscious alternative.

Summary of Key Outcomes from PSG PFS include;

Total NPV enhanced by + US $377.1 million
Annual production – 99.99% Spherical Graphite 20,000 tonnes
Life of project gross revenue US$4,904 million
LoP net revenue US$1,558 million
LoP total costs US$3,345 million
Capital expenditure(1) US$48million
NPV @10% US$377.1 million
IRR 76.5%
Project payback 1.5 years
LoP 30 years
LoP OPEX US$5,506 per tonne of 99.99% PSG
LoP total cash cost(2) US$5,594 per tonne of 99.99% PSG
LoP assumed price of 99.99% PSG US$7,500/t
Annual production of recarburiser by-product 20,000 tonnes
LoP assumed price of recarburiser by-product US$700/t

Notes to table

  1. Cashflow excludes interest, tax, depreciation and amortisation
  2. Includes sustaining capital

Key Assumptions

  1. The PSG processing facility basis of design was to process the -106 +38µm graphite concentrate produced by the Montepuez Graphite mine in Mozambique.
  2. The PSG facility location selected for the base case PSG PFS estimates is located in the USA. Several locations were considered as part of the study. The selection was based on;
    1. Locality to potential US market off-takers
    2. Locality to potential international off-takers
    3. Cost effective and sustainable power supply
    4. Logistics and transport simplicity
    5. Lower taxation environment.
  3. The thermal purification and coating plant location will be in the same area as the PSG facility.

An overview of the process

Spherical Graphite Process

MONTEPUEZ DFS

The current combined Feasibility Study was supported by the Definitive Feasibility Study at Montepuez.

Summary of Key Montepuez Graphite Project DFS outcomes

LoM years (1) 30
Annual concentrate production tonnes 100,000t pa
Total net revenue US$ 2,217 million
Total EBITDA US$809 million
Establishment capital cost estimate (pre-production) US$126 million
Total C1 cash cost * (2) US$1,173 million
Total cash cost FOB (3) US$1,221 million
Average annual EBITDA US$27 million
NPV (10% discount rate) before interest, tax and D&A US$146 million
Project payback period years 4.75
LoM concentrate assumed basket price US$798/t

Notes to table

  1. See the Mineral Resources and Ore Reserve update released by the Company to ASX on 15 February 2017
  2. Total C1 cash costs – all site costs plus transport and royalties
  3. Total cash cost FOB – C1 costs plus sustaining capital and closure costs

 

Montepuez Graphite Project DFS Outcomes

Montepuez Graphite Project DFS targeted annualised production rate of 100,000tpa of 96% TGC concentrate produced from ore sourced from the Elephant and Buffalo deposits respectively. The DFS has highlighted a very attractive LOM strip ratio of 0.6 tonnes of waste per tonne of ore, providing the Project with a very low operational mining cost.

The project contains a JORC compliant Probable Ore Reserve estimate of 41.4Mt @ 8.8% TGC for 3.64Mt of contained graphite at a cut-off grade of 4% TGC. This underpins the 30 year mine plan.

The mine DFS produces a graphite concentrate with a grade of 96% total graphitic carbon (TGC) producing four graphite flake products separated by size fraction.