Volt Resources CEO Prashant Chintawar joined Steve Darling from Proactive to share the company's Phase 1 Feasibility Study Update for the Bunyu Graphite Project in Tanzania. Chintawar explained that the Stage 1 graphite project aims to be established with a relatively modest capital expenditure. This approach will enable Volt Resources to develop the necessary infrastructure, initiate graphite production at a rate of 24,780 tonnes per annum, generate initial revenues, and position Bunyu as a prominent global supplier of graphite products. The updated feasibility study indicates a capital expenditure of $33.1 million for the Stage 1 project.
This investment is projected to yield a project lifespan of 13.7 years, almost double the duration of the previous study. These figures support a project that would generate a total EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $169.6 million over the operating period, an internal rate of return (IRR) of 31.5% before tax, a net present value (NPV) of $58.9 million before tax, and a payback period of 2.9 years before tax. Upon successfully commissioning Bunyu Stage 1, Volt Resources intends to progress to Stage 2 later in the decade. The goal of Stage 2 is to leverage the foundation established by Stage 1 and capitalize on Bunyu's substantial graphite resource. This would lead to a substantial increase in production capacity, aiming to reach 170,000 tonnes per annum, which would align with the anticipated rise in global demand for graphite products.