EXPLORATION & DEVELOPMENT

New Montepuez graphite plan

HAVING failed to excite the market much first time round, Battery Minerals has come up with a dramatically different development proposal for its Montupuez graphite project, with the mark II version featuring half the previously planned production rate at one-third the capital cost and lower operating costs.

Michael Quinn
New Montepuez graphite plan

The project in Mozambique is now expected to cost US$42 million to get into production (versus the previous $126 million), and produce about 45,000-50,000 tonnes per annum of graphite concentrate.

Average annual earnings are put at more than $20 million per annum (on an EBITDA basis), down on the $27 million previously.

Battery Minerals made the point that it was still using the $798 per tonne basket price plugged into the previous assessment, despite “current independent market commentators supported by our detailed market analysis indicat(ing) a long-term basket price in a range $847- 950/t”.

The new scenario anticipated owner-operator mining.

The new development plan also features a staged production ramp- up, smaller infrastructure footprint, a refined mine schedule (yielding a higher head grade), and increased recoveries.

Battery Minerals is estimated to have current cash reserves in the range of A$3-3.5 million.

Shares in the company were up 1.5% to 6.5c in afternoon trade, capitalising the company at about $28 million.

The stock has spent much of the past few months trading at levels of around 6-7c.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.