The company has estimated post-tax net present value of US$500 million or US$407 million based on two different development options.
Siviour is among the largest reported graphite deposits in the world, within a shallow, flat-lying mineralised body.
The Siviour Graphite Project is part of Renascor’s Arno Graphite Project in South Australia’s Eyre Peninsula.
Renascor’s PFS is based upon developing a single graphite deposit, the Siviour Graphite Deposit, to produce natural flake graphite concentrates over a 30-year mine life.
Notably, the Siviour Graphite Deposit has an ore reserve of 45 million tonnes at 7.9% TGC (total graphitic carbon) for 3.6 million tonnes of contained graphite.
Two development options considered
This Siviour PFS considers two development options: immediate large-scale production or a low start-up capital, two-staged development approach.
Immediate large-scale production option
Renascor’s projected results for immediate large-scale production include:
• Pre-production capital of US$99 million with a post-tax unleveraged net present value of US$500 million;
• Post-tax unleveraged internal rate of return of 62%;
• 30-year mine life, with average production of 142,000 tonnes per annum over first ten years (117,000 tonnes per annum over life-of-mine); and
• Operating cost of US$335 per tonne.
Low-start-up capital, staged development option
Renascor’s PFS also considers a low-start-up capital, staged development. Results of this option include:
• Pre-production capital of US$29 million with a post-tax unleveraged net present value of US$407 million;
• Average production of 22,800 tonnes per annum over the first three years before transitioning to larger scale production in year four; and
• Operating cost of US$576 per tonne of product over first three years, reducing to US$333 from years 4 to 30.
Renascor intends to continue the accelerated development of Siviour, with upcoming work programs expected to include the commencement of the definitive feasibility study (DFS).
The company is also planning to advanced offtake discussions with potential end-users of Siviour graphite products, including a planned Asia trip next month.
Renascor will also advance discussions regarding potential financing arrangements.