Project Locations: Tanzania
Stock Code: ASX:GPX
Commodity Exposure: Graphite
www.graphexmining.com.au
Company Summary
Graphex Mining Limited is an ASX-listed company focused on developing the Chilalo Graphite Project in south-east Tanzania. Chilalo is fully permitted and produces one of the coarsest flake graphite products in the world which translates into the highest sales price and strong margins driving compelling economics.
In late 2018, Graphex signed a finance transaction with US private investment firm, Castlelake LP for US$80M in debt/equity subject to the satisfaction of certain conditions. The recently completed DFS is one of those conditions. Company MD Phil Hoskins can provide unrivalled graphite market insights following the Company’s strong commitment to its graphite market understanding.
Management Profile
Phil Hoskins
Managing Director
Mr Hoskins commenced his career at a large international accounting firm and has since gained corporate experience with both Australian and international listed companies. He is a senior executive with 15 years of broad finance and commercial experience across resources exploration, project development and production as well as large-scale property developments requiring debt and equity financing. Prior to becoming Managing Director of Graphex in June 2016, he was Chief Financial Officer and then Managing Director of IMX Resources Limited.
Recent News (as of 3rd February 2020)
30 October 2019
Enhanced ‘Markets-First’ Strategy to Bolster DFS
Company Videos
Analyst Insight
Graphex Mining is an ASX-listed company focused on developing the Chilalo Graphite Project in southeast Tanzania. Chilalo is fully permitted and produces the coarsest flake graphite product in the world, which translates into the highest sales price and margins driving compelling economics.
Chilalo is host to a high-grade mineral resource (with an Ore Reserve) and has demonstrated an ability to produce a premium graphite concentrate, making it ideally suited to the rapidly-growing expandable graphite market.
The project hosts a high-grade JORC Mineral Resource and Ore Reserve comprising Indicated and Inferred resources of 16.9 Mt grading 10.2% TGC for 1,722kt of contained graphite. It hosts Total JORC Mineral Resource comprising an Indicated and Inferred resource of 53.5 Mt grading 5.6% TGC for 2.9 Mt of contained graphite. It hosts a Probable Ore Reserve of 4.7 Mt grading 11.0% TGC for 517kt of contained graphite.
Chilalo is technically sound with high margins, low capital intensity and attractive returns. The results of a pre-feasibility study (PFS) completed in September 2018 have returned Pre-tax NPV of US$349 million, Pre-tax IRR of 131% and Pre-tax payback period of 0.84 years. Annual production rates comprise 58,000 tonnes in years 1 and 2, and ~100,000 tonnes from year 3 onwards. Preproduction capital cost is estimated at US$44 million, with FOB operating costs of US$500 per tonne and a forecast basket price of $1,777 per tonne – generating an attractive operating margin of $1,277 per tonne.
The project hosts a high-grade JORC Mineral Resource and Ore Reserve that was updated during September 2018. It comprises a Total JORC Mineral Resource of Indicated and Inferred resources of 53.5Mt grading 5.6% TGC for 2.9Mt of contained graphite. There is a Probable Ore Reserve of 5.3Mt grading 10.9% TGC for 576kt of contained graphite. There is also significant resource upside, with an Exploration Target of 100-350Mt @ 3-11% TGC.
Graphex has entered into agreements with leading US private investment firm, Castlelake L.P., to raise up to US$80 million for the development, construction and ramp-up of the Chilalo Project.
