Graphite Mine Development and Battery
Materials Processing Technologies
Alabama Graphite Corp.
TSX:CSPG | OTCQB:CSPGF | FWB:1AG
Alabama Graphite Corp. (TSXV:CSPG | OTCQB:CSPGF) or ‘AGC’ is a Canadian-listed natural, flake graphite exploration and development company, as well as an aspiring US-sourced-and-manufactured battery-materials producer. As the only known graphite development company with its core business based on the production of secondary-processed, specialty battery-ready graphite products, namely, Coated Spherical Purified Graphite (CSPG), AGC does not intend to sell any primary-processed graphite concentrate. AGC intends to divert and process 100% of run-of-mine graphite into secondary processed, battery-ready graphite products — specifically CSPG — for use in Li-ion batteries, in addition to Purified Micronized Graphite (PMG). A highly experienced team leads the Company with more than 100 years of combined graphite mining, graphite processing, specialty graphite products and applications, and graphite sales expertise.
As America’s leading graphite development company, AGC is focused on the development of its flagship Coosa Graphite Project in Coosa County, Alabama — the most advanced flake graphite project in the contiguous United States of America.
- AGC has manufactured and shipped numerous tailor-made CSPG evaluation samples to several Department of Defence (DoD) battery contractors (DoD, DOE, and US government agencies strongly encourage their contractors and suppliers to source input materials from within the USA whenever possible)
- The ‘Buy American Act’ and other legislation may afford AGC a potential significant competitive advantage over its peers
- AGC has executed 30 NDAs with potential end users —14 with DoD Li-ion battery manufacturers — for CSPG and PMG samples
Share Price Performance
Donald K. D. Baxter – President & Chief Executive Officer
Tyler W. P. Dinwoodie – Executive Vice President
Douglas C. Bolton – Chief Financial Officer & Corporate Secretary
Jesse R. Edmondson – Director of Business Development
Ann-Marie M. Pamplin – Director of Investor Relations
Randy A. Moore – Strategic Advisor
Dr. Robert B. Cook – Strategic Advisor
US-based Investment Fund – 3.0%
High-net-worth Investor – 2.6%
High-net-worth Investor – 2.3%
High-net-worth Investor – 2.1%
Donald K. D. Baxter – 2.0%
Tyler W. P. Dinwoodie – 1.4%
High-net-worth Investor – 1.3%
High-net-worth Investor – 1.3%
High-net-worth Investor – 0.8%
High-net-worth Investor – 0.7%
Flagship Project (Alabama, USA)
Coosa Graphite Project
- The most advanced stage flake graphite project in the contiguous United States of America
- The only sourced-and-manufactured-in-USA solution for battery-ready graphite
- Unrivaled technical expertise
- 41,500 acres on private land
- No Federal permitting required; Stave-level permitting only; No First Nations claims
- Located in the historic, past-producing ‘Alabama Graphite Belt’
Alabama Graphite Corp’s mission is to build and advance the Company as a US-sourced-and-manufactured Li-ion Battery supply-chain producer
Preliminary Economic Assessment
- CAPEX of $43.2 million — the lowest initial CAPEX requirements in the graphite development space — with a payback period of 1.9 years (pre-tax) & 2 years (post-tax) from commencement of commercial production
- Base-case pre-tax NPV of $444 million, post-tax NPV $320 million (8% discount); pre-tax NPV of $329 million, post-tax NPV of $236 million (10% discount)
- Pre-tax IRR of 52.2%; post-tax IRR of 45.7%
- Base-case pre-tax annual cash flow of $67.5 million; post-tax annual cash flow of $49.7 million
- Life of Mine Gross Revenue (less royalty) of $2.4 billion
- Life of Mine OPEX of $533 million
- Life of Mine plan of 27 years based on mining ~10% of Mineral Resource Estimate
- Primary & secondary processing plants to produce 5,500 tons (5,000 tonnes) of specialty battery-ready graphite products annually, ramping up to 16,500 tons (15,000 tonnes) annually in year 7
- PEA is based on selling two specialty, high-value high-purity graphite products — CSPG (75% of planned production) & PMG (25% of planned production)
- Selling price for CSPG at $8,165 per ton ($9,000 per tonne) & PMG at $1,814 per ton ($2,000 per tonne) for a blended selling price of $6,577 per ton ($7,250 per tonne); Life of Mine average cash operating costs of $1,410 per ton ($1,555 per tonne) for final product of CSPG & PMG
Note: All dollar amounts are based in U.S. currency unless otherwise noted
AGC’s CSPG In Lithium-ion Battery Testing
- AGC conducted independent preliminary electrochemical test results for its CSPG in lithium-ion batteries. The test results demonstrated that AGC’s CSPG responded very well in CR2016 lithium-ion battery coin cell (half-cell with Lithium counter electrode; see above schematic) performance testing.
- The CSPG test results — representing a 94.91% efficient battery — are regarded as excellent in the lithium-ion battery industry and exceed the specifications of major battery manufacturers.
- The Company’s innovative, proprietary specialty CSPG manufacturing process which utilises environmentally sustainable processing methods.
- Test results on the Company’s CSPG exceed the performance of the comparison benchmark of commercially available grade material.
- The test results confirm AGC’s potential midstream capability to manufacture and tailor lithium-ion battery anode grade graphite in order to create value-added products to meet highly demanding downstream customer specifications.
AGC’S Silicon0 Enhanced CSPG(SI-CSPG) Anode Material For Lithium-ion Batteries
AGC succeeded in producing high-performance Silicon-enhanced Coated Spherical Purified Graphite (Si-CSPG) for Li-ion batteries.AGC’s Si-CSPG was tested, performed well and exceeded theoretical electrochemical performance of premium-quality graphite; AGC’s Si-CSPG delivered Reversible Capacity above 405 mAh/g; exceeding the Maximum Theoretical Specific Capacity for Li-ion Anode Graphite (which is 372 mAh/g).
Due to environmental and cost concerns, management of AGC believes that the growing American lithium-ion battery industry requires a US-sourced, cost-competitive alternative to current — primarily Chinese and environmentally unsustainable — sources of CSPG. According to UK-based Benchmark Mineral Intelligence, a leading independent source for data on the Li-ion battery global supply chain, the United States will require more than 150,000 tonnes of anode graphite by 2020 (total global demand is forecasted to be more than 780,000 tonnes of anode graphite by 2020).