International Graphite claims that for just A$12.5 million it can upgrade pilot micronising and spheroidising facility into a larger micronising plant at the Western Australian coal town of Collie, with commissioning in the September quarter of 2024.
Envisaged as the first of its kind in Australia, potentially beating rivals such as EcoGraf and Renascor Resources to market, the facility would deliver micronised products to the market.
The DFS suggests operating costs averaging US$1980 per tonne, delivering into a market where prices exceed $3000/t.
Collie would have a nominal capacity of 4000tpa, and the potential for 5000tpa depending on the final mesh specifications of the product.
While the company is yet to release financial details for the plant, it should be cashflow positive soon after commissioning.
Micronising is the first step in the production of battery anode material, but creates a product that is in demand as a cathode additive for lithium-ion batteries, and in industrial markets for use in lubricants, engineered products, polymers, and plastics.
According to IG6 managing director Andrew Worland, the plant will not only generate an income and make IG6 a name in the global graphite sphere.
"Micronised graphite is the critical first stage in the production of BAM and also a by-product from the graphite spheroidising process - building a market for it will significantly enhance our future BAM operations," he said.
IG6 has already produced micronised product at pilot-scale from Collie, and will set-up qualification-scale equipment by mid-year as it starts wooing customers ahead of a final investment decision into the commercial-scale plant.
IG6 has less than A$5 million in the bank, and is examining non-dilutionary funding options for the facility, that could potentially involve debt or accessing the federal government's $2 billion critical minerals facility.
IG6 intends to process third-party graphite from unannounced sources, however the plant will also be available to treat a portion of graphite concentrates produced from its Springdale project, near Ravensthorpe, where recent drilling continues to grow the scale and quality of the resources.
Recent flotation tests on samples from recent discovery drilling produced a concentrate grading above commercial quality at 97.4% total graphitic carbon.
IG6 listed 11 months ago, raising $10 million with the aim of becoming a vertically integrated graphite firm, and a key link in the battery chemical supply chain.
So far, IG6's strategy appears to be on track.
Shares in the company were last traded at a 12-month low of 20c, capitalising it at $33 million.
It has traded as high as 47c over the past year.
