EcoGraf Ltd (ASX:EGR, OTCQX:ECGFF) has completed an updated bankable feasibility study (BFS) for its Epanko Graphite Project in Tanzania, outlining a 73,000-tonne-per-annum (tpa) operation with a pre-tax net present value (NPV10) of US$516 million and an internal rate of return of 31.1%.
The revised study increases planned throughput by 21.7% to 73,000 tpa for the first 15 years, supported by an updated ore reserve of 16.7 million tonnes at 8.2% total graphite carbon. Pre-production capital is estimated at US$181.2 million, with additional resettlement costs of US$18.1 million. Annual EBITDA is projected at US$85.7 million, based on a life-of-mine basket price of US$1,746 per tonne.
Epanko Stage 1 LOM Processing Plant Feed
Managing director Andrew Spinks said the updated study and independent technical review “cements Epanko as a world-class graphite project, poised for development”.
“The company is now positioned well to take advantage of the forecasted huge growth in graphite demand, on the back of the increased electric vehicle and energy storage battery boom.”
Strong reserves and cost profile
The study assumes a 22-year mine life, with the first decade of production underpinned by a high proportion of proved reserves. Average graphite production during the oxide phase is forecast at 73,000tpa, with recovery of 97.2% and average product carbon grade of 96%.
Operating costs over the first 10 years are estimated at a C1 cost of US$544 per tonne and an all-in sustaining cost of US$639 per tonne, reflecting grid-supplied hydropower and a low strip ratio of 0.86:1.
Financing and expansion pathway
EcoGraf said its debt financing program is at an advanced stage under the leadership of KfW IPEX-Bank, which is arranging up to US$105 million in senior debt under a German government guarantee scheme.
The company has also secured binding and in-principle offtake agreements covering a substantial portion of planned production and flagged staged expansion potential. Conceptual scenarios outline capacity growth to as much as 390,000tpa over time, positioning Epanko as a potential major supplier into emerging ex-China graphite supply chains.
Epanko Project Location Map