International Graphite Ltd (ASX:IG6) hit the boards today after a $10 million initial public offering (IPO) at 20 cents per share and acquisition of the Springdale Graphite Project in southern Western Australia.
The graphite player joined the local bourse under the ticker ‘IG6’ and opened at A$0.40 per share, double the IPO price.
Investors were keen to get in on the story with more than 13 million shares changing hands and shares trading in the range of $0.365 to $0.42.
As a fully-fledged ASX lister, International Graphite plans to provide a new source of battery graphite to the global electric vehicle (EV) and renewable energy markets.
It’s designed an integrated mine-to-market operation in Western Australia that will take mine concentrate from its newly acquired Springdale asset and create battery anode materials at a downstream processing facility in Collie.
IG6 by the numbers
International Graphite’s IPO saw it issue 50 million shares at $0.20 apiece, raising $10 million to support its graphite production dreams.
Thanks to the pre-listing fundraise, the graphite stock hit the boards with a $35.8 million indicative market cap and nearly 180 million shares on issue.
The company’s plans for the IPO funding include:
- Systematically explore and upgrade the inferred mineral resource estimate for the Springdale Graphite Project;
- Install, commission and operate the Collie R&D processing facilities, demonstrate capacity to produce spheroidised graphite and develop a process for purification of graphite concentrates;
- Install, commission and operate the first graphite micronising line; and
- Complete technical and permitting studies integrating the Springdale project and the company’s proposed Collie processing facilities.
Targeting renewable energy industry
International’s strategy centres on the newest addition to its portfolio: the Springdale Graphite Project in Australia’s southwest.
The asset was recently acquired from fellow ASX-lister Comet Resources Ltd (ASX:CRL) and is prospective for graphite and other resources.
Springdale is at the exploration and development stage and comprises two granted exploration licences and a prospecting licence, covering roughly 180 square kilometres.
The graphite deposit is in a mining hub in the south of Western Australia — 25 kilometres from the Ravensthorpe Nickel Mine and 45 kilometres from the Galaxy Lithium Mine.
Springdale is reported to hold 15.6 million tonnes of inferred resource at 6% total graphitic content (TGC), including a high-grade 2.6-million-tonne, 17.5% TGC component.
Combined with the initial processing asset in Collie, International Graphite is on track to be WA’s first fully integrated mine-to-market graphite producer.
Notably, the WA Government has already committed $100 million to develop Collie as a major renewable energy centre and critical minerals processing hub.
Last year, IG6 secured a $2 million government grant from the Collie Futures Industry Development Fund to help establish a graphite micronising plant in the region.
The International Graphite team
IG6 is led by experts in the Australian metals industry, and much of the company’s board brings experience in the graphite market to the newly minted ASX lister.
International Graphite founder Phil Hearse incorporated the company back in 2018, and he’s in the driving seat as executive chairman today.
From left: proposed non-executive director Matthew O’Kane, executive chairman Phillip Hearse, non-executive director David Pass and non-executive director Andrew Worland.
Hearse said of IG6’s debut: “ASX listing is a key milestone in the company’s strategy to deliver a consistent, high-quality source of battery graphite for global markets while contributing to the establishment of a sovereign critical minerals capability in Australia.
“Globally, graphite supply is coming under huge pressure as decarbonisation revolutionises the transport and energy markets, creating unprecedented demand for battery storage, particularly lithium-ion batteries for electric vehicles.
“Graphite now has critical mineral status in Australia, the United States and the European Union, with demand forecast to outstrip known supply and shortages anticipated worldwide.
“Technology and battery manufacturers are looking for new suppliers who can deliver quality products with high standards of ESG performance.
“Our planned vertically integrated business strategy based wholly in Western Australia from mine to market provides supply chain custody and ESG assurance in a secure first world jurisdiction.
“I want to thank my fellow directors, staff and advisors, the Government of Western Australia, and the Hopetoun and Collie communities, for helping us to build this future capability for our State.”