Volt Resources Ltd (ASX:VRC) has production up and running again at the Zavalievsky graphite mine and processing plant (ZG) in Ukraine.
The graphite producer and battery materials developer says the export of graphite products to central and eastern Europe will kick off later in August, with sales revenue due not long after.
Operating plan and budget
In recent months Volt has been working with ZG management to finalise an operating plan and budget for the next 17 months through to December 2023.
Based on past operating performance and improvements to operations and planning, ZG is forecast to produce between 8,000 and 9,000 tonnes of graphite products for the year ending June 30, 2023.
The company will issue a production forecast for ZG’s high-value purified graphite product once operations are ramped up and stabilised.
Mitigating lost production
The production forecast includes a provision for two months lost production during the winter months due to a previously disclosed water and tailings pipeline issue.
Volt will be looking for solutions to mitigate this lost production in the winter months.
Sales prices are under negotiation but are expected to be in the range of US$750 to US$850 per tonne in cost, insurance and freight (CIF) for the fine flake product grading 94% total graphitic carbon content (TGC).
The high purity product, which grades between 99% and 99.5% TGC, is expected to achieve a sales price between US$1,500 to US$2,000 per tonne CIF.
Difficult period
The company is re-starting operations following a lengthy period of disruption.
Further disclosure regarding unit costs and sales pricing will be provided as required and through the quarterly reporting process.
Managing director Trevor Matthews said: “Congratulations to the Zavalievsky management and staff, who have put a lot of time and planning into the recommencement of graphite production and sales.
“Their commitment during a difficult period has been outstanding.
“Volt looks forward to the ramping up of production and the commencement of sales to customers in Europe.”
Shares have been as much as 18% higher this morning to $0.02.