Hexagon looks to US graphite processing venture

HEXAGON Resources has scoped an economic-looking staged downstream graphite processing idea that will initially cost A$23-27 million to kick-start and ultimately a potential $300 million.
Hexagon looks to US graphite processing venture Hexagon looks to US graphite processing venture Hexagon looks to US graphite processing venture Hexagon looks to US graphite processing venture Hexagon looks to US graphite processing venture

Hexagon is optimistic about its downstream graphite options.

The project would produce a suite of end products comprising "a dozen premium materials across battery and technical/industrial applications".
 
It would initially produce about 1000t of products, with market acceptance seen as key to bankrolling the circa-$130 million first commercial stage yielding 20,000tpa.
 
The third stage to 50,000tpa could cost another $150 million, and is seen as being funded out of internal cashflows.
 
Post-tax net present values and internal rate of return are put in the order of $700-850 million and circa 40%, respectively.
 
From a post-tax economic perspective, locating the processing plant in Chelan County, Washington State, USA, is a "clear front runner" (versus Geraldton in Western Australia), according to Hexagon.
 
Hexagon has a joint venture in WA with Mineral Resources, with the latter earning a 51% stake in the former's McIntosh graphite project via exploration and development.
Hexagon started the current quarter with $4.9 million cash.
 
Shares in Hexagon were down 4% to 13c in midday trade, capitalising the company at $38 million.