Flanagan outlines Battery's big growth ambitions

BATTERY Minerals is targeting graphite production of 200,000 tonnes per annum by the end of 2023, managing director David Flanagan said today.
Flanagan outlines Battery's big growth ambitions Flanagan outlines Battery's big growth ambitions Flanagan outlines Battery's big growth ambitions Flanagan outlines Battery's big growth ambitions Flanagan outlines Battery's big growth ambitions

Battery Minerals' Naomi Scott and David Flanagan at Resources Rising Stars

The company is now about a year away from first graphite sales from the Montepuez stage one project in Mozambique.

Earlier this month, Battery agreed to a US$30 million funding package from Resource Capital Funds and is currently raising a further A$25 million from a placement and share purchase plan.

Montepuez stage one has capital costs of US$42.3 million and Flanagan said the company will be making around a $500 per tonne margin on annual production of 50,000tpa.

"It's not going to be the biggest in the world but we think it's sweet and we're going to grow it, then we're going to grow it again," he told the Resources Rising Stars conference on the Gold Coast today.

The company is also completing a feasibility study on the 50,000tpa Balama project in Mozambique, targeting first production in 2021.

Balama could have an $800/t margin.

 "This project is really beautiful," Flanagan said.

"I would have loved it if we could have built this one first."

Graphite prices have risen over the past 12 months and demand is steadily rising.

"I think the world is way underselling electric vehicle demand," Flanagan said.

"I don't know where all the graphite is going to come from."

Earlier this month, Roskill forecasts consumption of graphite in battery applications to grow by 17-22% per annum between 2017 and 2022.

"The graphite industry is on an upward trend with increasing prices and rising demand, underpinned by the rapid uptake of lithium-ion batteries."

Shares in Battery were up by A0.1c to 5.7c. The recent raisings were conducted at 6c.