Gratomic Inc. (TSX-V:GRAT, OTCQX:CBULF) has updated investors on activities at its Aukam graphite mine in Namibia ahead of the anticipated kickoff of production in the first quarter of 2024.
The company said that since it commenced the commercial commissioning phase at the mine at the end of June 2023, it has processed 80 tons of material through the processing plant at a grade of 94% graphitic carbon (Cg) concentrate which is being stored on site.
Gratomic said it has stockpiled enough mined material to currently feed operations for a full year once the final pieces of equipment are in place.
All equipment is on-site and being installed into the assembly line, it noted.
It expects to start production in the first quarter of 2024 and expand its capacity gradually to 22,500 tons in 2025.
The company said it anticipates requiring an additional C$4.7 million capital expenditure on the facility which will expand output to 12,000 tons by November 2024 from initial output of 7,600 tons.
"The past few months have been challenging and time-consuming, it is with great relief that we now see ourselves in the final steps in preparation of production at the Aukam graphite mine in Namibia,” Gratomic CEO Arno Brand said in a statement.
The mine's initial product will be sold to a European carbon trader until the product can be included in the anode market, Gratomic noted.
It said it is in discussions with several potential new buyers and, as such, has delayed its product development program by serval weeks to ensure it can gather the relevant product specifications to fulfil end user requirements.
Gratomic’s shares moved higher on the mine update, adding 8.8% at C$0.19 late morning on Wednesday.
Gratomic is a multinational company with projects in Namibia, Brazil and Canada. It aims to become a leading graphite supplier and secure a strong position in the electric vehicle battery supply chain through the development of its flagship Aukam graphite mine and ongoing exploration at the Capim Grosso property.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on X, formerly known as Twitter, @emilyjjarvie