Battery Minerals Limited, an ASX listed company (ASX: BAT), is a diversified mining development and minerals exploration company dedicated to exploring for and developing mineral deposits in Mozambique.
The Company’s core commodity targets are graphite, zinc/lead and copper. BAT is maintaining a focus on its two graphite development assets located in Mozambique, Montepuez and Balama, which are expected to come into production in late 2018 and 2021 respectively.
Battery Minerals completed a $20m placement via a $19.5 share placement in January, 2018. The placement was strongly supported by Battery Mineral’s largest shareholder, which has maintained its 12.55% interest in the Company, and institutional investors.
The Company is now fully-funded for its next phase of growth, including:
- Significant drilling programme underway at Montepuez, with results due shortly
- Planning, design and early development works at Montepuez including orders placed for the crusher and detailed engineering
- Accelerate a DFS on Battery Mineral’s Balama graphite project with expected completion June 2018
Share Price Performance
David Flanagan – Executive Chairman
Ben Van Roon – Chief Operating Officer
Andy Cardoso – Mozambique Country Director
Tony Walsh – Company Secretary & GM Corporate
Jeff Dawkins – Chief Financial Officer
Farjoy Pty Ltd. – 12.55%
Mitchell Group Holdings – 3.45%
BAS Investments Pty Ltd – 2.75%
Pacific Development Corporation – 2.00%
Top 20 Shareholders – 35.34%
Montepuez Graphite Project
- Advanced Graphite Project (DFS and Value Engineering Study completed and published)
- Proven Logistics: bulk sample delivered to port in 2017 means 260km logistics chain now proven
- Port Allocation Approved: at Pemba Port for 100,000tpa of graphite concentrate
- Huge Resource/Reserve Inventory:
- Probable Ore Reserve 41.4Mt @ 8.8% TGC @ 4% TGC cut-off for a 30+year mine life
- Indicated & Inferred Resource 105.9Mt @ 7.74% TGC @ 2.5% cut-off
- Significant exploration potential
- Fast Development Timetable
- Approvals expected in March Quarter 2018 – Construction started in early 2018
- First shipment March Quarter 2019
- Concentrate production of 50Ktpa @ 96.7% TGC
- Initial production of 45,000 – 50,000tpa of graphite concentrate growing to 100,000tpa.
- Low Capex of US$42.3M, lowest quartile Opex of US$337 per tonne.
- Short payback of less than 2 years
- Able to expand to 100ktpa:
- US$25-29M for additional 45-50ktpa capacity
Balama Graphite Project
Concept study justifies move to feasibility study
- Balama Total Resource of 16.3Mt at 10.4% TGC2 (6% TGC cut-off), for a 20+ year mine life, based on Montepuez type production parameters
- Additional resource potential down-dip, along strike
- Preliminary test work concentrate recovery 93%, with 63% of product plus 150 micron high value flake
- Favourable flake distributions – September 2017 Benchmark Minerals published basket price US$1217/t
How much Graphite Is Needed For Electric Car Take-Up?
- A typical EV or HEV has a 30-100kWh battery pack (Tesla Model 3 have >60kWh).
- Each battery requires ~1.1kg of graphite per kWh
- A Nissan Leaf with a 24kWh battery would need 27kg of graphite
- A Tesla Model S with a 85kWh battery would require ~94kg of graphite
- A Chevrolet Bolt with a 60kWh battery has 63kg of graphite
- UBS assumes on average each EV or HEV contains 50kg of graphite. That means each 1m vehicle sales per annum need ~50tktpa of graphite in the anode (45-50% material).
- 2016 Annual car sales ~94m vehicles (72m passenger) so 1m vehicle sales would represent around 1% of world car sales. If 30% of current car sales were Evs, then we need ~1.1Mtpa of graphite. The current graphite market is ~2.4Mtpa, of which natural flake is ~650ktpa. Thus if EV + HEVs take up a reasonably chunky position on the car market then the mine supply of natural flake graphite will likely need to grow multi-fold.
- UBS model sales of 11.5m BEV, 7.2m HEV & 2.7m PHEV in 2025e.
This needs 555,000 tonnes of natural spherical coated graphite which with production losses requires 1.17m tonnes of natural flake graphite concentrates, ie. 95% TGC.