The company, previously known as BlackEarth Minerals, said its preliminary work suggested a BAM operation that could turn graphite concentrate from Maniry into uncoated spheroinised purified graphite for use in lithium-ion batteries would deliver "strong returns".

 

The BAM study examined five difference process routes, with the company selecting a caustic baking flowsheet as it moves toward a prefeasibility study.

 

It examined two throughput rates.

 

A smaller 15,000 tonne per annum operation would require US$74.5 million in capital costs, delivering a pre-tax net present value and internal rate of return of $153 million and 28.4%.

 

A 30,000tpa option has an NPV of $392 million and an IRR of 39.5% with capex of $117 million.

 

Pre-tax cashflow would be either $1.4 billion or $2.8 billion.

 

Managing director Tom Revy said that while China remains dominant in the BAM space there was significant demand for diversity of supply within the European market.

 

"By developing a vertically-integrated graphite business, Evion is positioning itself to take full advantage of the highly favourable supply-demand fundamentals emerging for our products as a result of the energy transition," he said.

 

Demand for graphite is expected to double by the middle of the decade, and Revy said Evion has a unique ability to operate one of the first western-owned BAM plants in the world.

 

It is already engaging with potential stakeholders about finance and offtake deals, and a potential processing site in Germany.

 

It will next refine and optimise its flowsheet in preparation for the PFS.

 

Testing late last year confirmed graphite from Maniry can be converted into a 99.99% product ideal for batteries, with low reagent use and low power requirements, improving its green credentials.

 

It has struck an offtake agreement with US-based Urbix Resources for 15,000tpa that would be converted to anode in the US, leaving up to 60% of Maniry's production available for conversion in Europe.

 

Maniry aims to produce an initial 39,000tpa, before expanding to 55,000tpa.

 

The DFS suggested that around $79 million would be needed for stage one, plus a further $25 million for the expansion in year four.

 

Maniry has total resources of 40Mt at 6.5% total graphitic carbon, and can support an initial mine life of 21 years.

 

Shares in the junior have traded at A5.6-18c over the past year, and the stock was steady at 7.1c this morning valuing it at $20 million.

 

Its last reported cash position was $4 million.