EXPLORATION & DEVELOPMENT

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 is optimistic about its downstream graphite options.

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.

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

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.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.