International Graphite Ltd (ASX:IG6, OTC:IGRPF) has outlined potential annual revenue of A$26.0 million to A$32.4 million and EBITDA of A$11.1 million to A$14.2 million from its Collie graphite micronising facility in Western Australia, with construction remaining on schedule for commissioning in mid-2027.
The 12-month economic snapshot is based on current spot sales prices and production of between 4,300 and 6,400 tonnes per year of standard and high-grade graphite products ranging from 5 microns to 45 microns. The figures are illustrative and do not constitute formal financial guidance.
IG6's final equipment selection would allow Collie to manufacture a broader range of products than originally envisaged in the front-end engineering and design study, including higher-value superfine graphite materials.
Higher-value products boost earnings potential
The company plans to focus production on maximising margins rather than overall volumes, with the product mix to be determined by customer demand.
Finer graphite products attract higher potential selling prices across both standard grades of 94%-95% total graphitic carbon (TGC) and high-purity grades of 99.0%-99.9% TGC, although they also require lower manufacturing throughput and consequently carry higher unit production costs.
At the planned production rates and using prevailing prices, International Graphite estimated that the facility, if operating today, could generate annual revenue of A$26.0 million to A$32.4 million and annual EBITDA of A$11.1 million to A$14.2 million.
The company also has non-binding Heads of Terms with Wogen Pacific Ltd, providing a potential pathway for Collie products into established Asia-Pacific markets.
Collie construction remains on schedule
Construction of Australia's first commercial-scale graphite micronising facility remains on track, with the production building and installation of the first milling equipment expected to be completed during the second quarter of 2027.
Vendor testing of additional milling equipment has been completed, with orders being prepared and delivery expected before the end of the same quarter.
Commissioning and ramp-up are scheduled to begin in mid-2027, initially operating one eight-hour shift, five days a week for the first 12 months before moving towards continuous 24/7 operations as market demand develops.
The company has completed its $4.4 million placement, bringing new cornerstone investors onto the company’s register and providing additional funding for its graphite processing operations in Western Australia and Europe.
Feedstock and growth strategy
International Graphite reports that the principal assumptions determining cost of goods sold remain unchanged from its earlier engineering study.
Current estimates incorporate graphite feedstock prices sourced from mining operations across five jurisdictions, together with power, labour, freight, logistics and processing costs. Around 75% of the facility's cost of goods sold is expected to be variable.
Wogen intends to source up to 10,000 tonnes per year of flake graphite concentrate to support Collie's future feedstock requirements as production expands.
Next steps
International Graphite will progress construction and equipment installation ahead of commissioning in mid-2027 while continuing development of its graphite product range.
The company sees further earnings growth potential through additional low-capital-cost production lines, product diversification and the possible introduction of local graphite purification.
Longer term, integration with its Springdale Graphite Project could provide an internally controlled source of feedstock and support the development of a vertically integrated Australian graphite processing and manufacturing operation.