International Graphite Ltd (ASX:IG6, FRA:H99, OTC:IGRPF) made substantial progress across its Australian and European graphite processing strategy during the June quarter, moving its Collie Micronising Facility into construction and formalising a joint venture for a major processing hub in Italy.
The company also strengthened its commercial position through a proposed supply and sales arrangement with Wogen Pacific Limited and announced a $4.4 million equity raising to support development activities.
Collie construction gets underway
Construction has started at International Graphite’s Collie Micronising Facility in Western Australia following receipt of the final building permit from the Shire of Collie.
Prosser Built has been appointed to construct the production building, micronising equipment has been ordered and vendor test work and equipment selection for jet milling continued during the quarter.
The building approval satisfied the second milestone under the Western Australian Government’s $4.5 million Collie Industrial Transition Fund grant, releasing another tranche of funding. Around $2.8 million remained available under the grant at the end of June.
The facility is also supported by the Australian Government’s Critical Minerals Office and forms part of the company’s strategy to establish a domestic source of specialised graphite products for industrial, defence, energy storage and advanced manufacturing markets.
Wogen agreement supports future sales and supply
International Graphite signed non-binding heads of terms with specialist metals and minerals trading company Wogen Pacific, establishing a potential route to market for Collie’s production.
Under the proposed arrangement, Wogen would purchase at least 3,000 tonnes per year of micronised graphite for exclusive distribution across the Asia-Pacific region.
Wogen also intends to source up to 10,000 tonnes per year of flake graphite concentrate as Collie’s feedstock requirements increase, while providing logistics, supply chain and financing support.
The companies are working toward a definitive commercial agreement as the facility progresses toward production.
Binding Italian joint venture established
In Europe, International Graphite signed a binding joint venture and shareholders’ agreement with hydrofluoric acid producer Alkeemia S.p.A. to establish a graphite processing hub at Porto Marghera, Italy.
Alkeemia will hold 51% of the venture and International Graphite 49%, with profits shared equally.
The initial facility is planned to produce about 10,500 tonnes per year, with scope to expand to roughly 15,000 tonnes annually within three years, subject to market demand.
International Graphite will contribute $12 million toward initial development, while Alkeemia will provide land, permitting assistance, infrastructure, personnel and operational services. Future expansion is expected to be funded from joint venture cash flow.
A technical and financial evaluation completed during the quarter indicated that International Graphite’s 50% share could generate annual sales revenue of $20.1 million and EBITDA of $12.2 million under current market assumptions. The figures represent an operating snapshot rather than a financial forecast.
The existing infrastructure at Porto Marghera is expected to reduce capital requirements, development timelines and execution risk compared with a standalone project.
Purification results exceed target
International Graphite also reported strong results from graphite purification test work undertaken at Alkeemia’s specialist laboratories.
All seven concentrate samples tested, including material from the Springdale Graphite Project, exceeded the targeted purity level of 99.9% total graphitic carbon, with results of up to 99.98%.
Alkeemia is constructing a 200-tonne-per-year purification pilot plant and has allocated International Graphite up to 50% of its initial capacity for test work.
The Italian company plans to progressively expand purification capacity to 20,000 tonnes per year by 2030, providing International Graphite with a potential route into higher-value purified graphite markets.
Springdale feasibility work continues
The Springdale Graphite Project in Western Australia remained at the feasibility stage during the quarter.
Springdale hosts a total mineral resource of 49.3 million tonnes grading 6.5% total graphitic carbon at a 2% cut-off, containing about 3.2 million tonnes of graphite.
Previous development work outlined a 500,000-tonne-per-year processing operation capable of producing around 46,000 tonnes of graphite concentrate annually over the first 15 years.
International Graphite is also evaluating smaller-scale start-up options that could provide a staged development pathway.
Funding supports next phase
International Graphite ended the quarter with $2.71 million in cash and announced a $4.4 million placement priced at $0.04 per share.
The first tranche raised approximately $2 million before costs, while the second tranche, expected to raise a further $2.4 million, remains subject to shareholder approval.
Proceeds will be directed toward progressing the Alkeemia joint venture to a final investment decision, advancing graphite processing operations in Australia and Europe and supporting general working capital.
The company also has around $7.6 million in undrawn Western Australian Government grant funding available for the Collie facility and associated processing initiatives.