EXPLORATION & DEVELOPMENT

Evion study backs European plant plan

FRESH off a promising definitive feasibility study for its Maniry graphite project in Madagascar, Evion Group now says a further scoping study provides ‘compelling’ support for a downstream battery anode plant in Europe.

Evion has its sights set on the downstream battery market

Evion has its sights set on the downstream battery market

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.

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.