DMNKF - Graphite Miners News For The Month Of November 2023

2023-11-29 08:57:09 ET

Summary

• China flake graphite prices & spherical graphite prices were flat to slightly lower the past month. Slightly higher in Europe.
• Graphite market news - European graphite price increase in November 2023 amidst China export curtailment/permit set to begin on December 1, 2023.
• Graphite company news - MRC takes 100% ownership of Skaland. Northern Graphite resumes processing at North America’s only producing graphite mine.
• Evion Group - Production set to commence at Evion JV in India. Renascor Resources BAM Study results in a Post-tax unleveraged NPV 10 of A$1.5 billion, IRR of 26%. Sovereign Metals Kasiya Project PFS - Post-tax NPV8 of US$1,605m and post-tax IRR of 28%.

Welcome to the November edition of the graphite miners news.

November saw some graphite price increases in Europe with the China export curbs (need for an export permit) set to begin on December 1, 2023. We also saw a busy month of news from the graphite juniors.

Graphite price news

During the past 30 days, the China graphite flake-194 EXW spot price was down 0.77%. The China graphite flake +195 EXW spot price was up 0.16%. Note that 94-97% is considered best suited for use in batteries; it is then upgraded to 99.9% purity to make "spherical" graphite used in Li-ion batteries. The spherical graphite 99.95% min EXW China price was down 0.49% the past 30 days.

BMI Flake graphite 1 year price chart, 94-95%C, -100 mesh (as of September 2023) ( source )

Graphite demand and supply forecast charts

BMI graphite-market-balance benchmarkweek-2022 ( source )

Macquarie Research (March 2023) forecasts flake graphite deficits starting in 2025 and growing larger to 2030 ( source )

Trend Investing v IEA demand forecast for EV metals ( IEA )

2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 - Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, And Copper 2x to 3x

2022 - BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand - 97 new 56,000tpa natural flake graphite mines

Graphite market news

On October 31, The Government of Canada announced :

Government of Canada to enhance critical minerals sector with launch of $1.5 billion Infrastructure Fund...The CMIF will address key infrastructure gaps to enable sustainable critical minerals production and to connect resources to markets. With up to $1.5 billion available over seven years, the fund will support clean energy and transportation projects that will enable critical mineral development..."Our investments will help the mining industry develop important enabling and supporting infrastructure such as roads and energy facilities required prior to construction of mines. Canada has an opportunity to be a substantial global producer of critical minerals. We are pleased to play a role in unlocking critical mineral deposits, which are essential for Canada's move to net zero and economic development in northern communities."

On November 7, Benchmark Mineral Intelligence reported :

Infographic: China controls three-quarters of graphite anode supply chain...Chinese production represents 74% of the total supply chain for graphite anodes, according to data from Benchmark.

Chinese production represents 75% of the natural graphite supply chain and 74% of the synthetic graphite supply chain globally ( source )

On November 14, Investopedia reported :

Rare earth minerals are more in demand than ever-Here are the ones to know. Demand for rare earth minerals and metals has soared over the past few years, as more industries and countries transition to cleaner energy sources...China also handles 85% of rare earth processing... Graphite is used across many industries, but is most in demand for its use in batteries, especially EV batteries. Graphite can either be sourced naturally or artificially. Synthetic graphite batteries are preferred by producers because they are more reliable and have a longer battery life. China is the top producer of graphite, supplying 70% of the world's natural graphite in 2022. China is also the main producer of synthetic graphite-the process of making spherical graphite for batteries is done almost entirely in China.

On November 21, Chem Analyst News reported :

European graphite price increase in November 2023 amidst export curtailment from China...The supply curtailment from China has been a major cause of the rush in the battery feedstock market. As the supply of natural Graphite slips southwards, the European Commission welcomes the induction of synthetic Graphite in Europe's critical raw material list. This has created the need for a European strategic partnership with Chinese manufacturers across the supply chain to develop security for these critical materials. Last month, China announced its intention to impose export permits, temporarily enforcing dual-use item export license requirements on three synthetic Graphite-related items and six natural Graphite-related items starting from December 1.

On November 24, Bloomberg reported : "Carbon graphite market to reach $4.5 Billion, globally, by 2032 at 5.7% CAGR: Allied Market Research."

Graphite miners news

Graphite producers

We have not covered the following graphite producers as they are not typically accessible to most Western investors. They include - Aoyu Graphite Group, BTR New Energy Materials, Qingdao Black Dragon, National de Grafite, Shanshan Technology, and LuiMao Graphite.

Note: AMG Critical Materials N.V. [AMS:AMG] [GR:ADG] (AMVMF) is also a "diversified producer", producing graphite, vanadium, and lithium. SGL Carbon [ETR:SGL] is a synthetic graphite producer and Novonix [ASX:NVX](NVX) is commercializing their synthetic graphite product. Graphex Group Limited [HK:6128] (GRFXY) makes spherical graphite.

Syrah Resources Limited [ASX:SYR][GR:3S7]( SYAAF )( SRHYY )

Syrah Resources Limited owns the Balama graphite mine in Mozambique. Syrah is also working to become a vertically integrated producer of natural graphite Active Anode Material ("AAM") at their Vidalia facility, Louisiana, USA.

On October 26, Syrah Resources announced : "China to implement export controls on graphite products." Highlights include:

• "Permanent China export controls on designated graphite products including natural graphite and spherical graphite used in the battery supply chain.
• China is the most significant global participant in natural graphite and spherical graphite markets globally.
• Any disruption to China export supply would impact global battery and industrial markets for graphite products.
• Near-term China supply uncertainties benefit Syrah's development and commercial position."

Catalysts:

• December 2023 quarter - First Stage 11.25ktpa AAM Vidalia facility targeted to start production.

Natural graphite and AAM demand will increase three and five times, respectively, over the next 10 years

Ceylon Graphite [TSXV:CYL] [GR:CCY] (CYLYF)

Ceylon Graphite has 'Vein graphite' production out of one mine in Sri Lanka with 121 square kilometers of tenements.

On November 18, Ceylon Graphite announced :

Ceylon Graphite announces closing of $365,000 convertible debenture financing and extension of convertible debenture...

Mineral Commodities Ltd. ("MRC") [ASX:MRC]

Skaland Graphite is 100% owned by MRC. Skaland is the highest grade flake graphite operation in the world and largest producing mine in Europe; with immediate European graphite production of up to 10,000 tonnes per annum with regulatory approval to increase to 16,000. MRC plans to demerge its Norwegian graphite assets into a newly incorporated Norway company branded as Ascent Graphite.

On October 26, Mineral Commodities Ltd. announced : "Quarterly activities report - September 2023." Highlights include:

During the quarter:

• "MRC takes 100% ownership of Skaland, after acquisition of minority shareholder interest.
• Permanent seawater intake solution at Tormin secured as part of MSP funding."

Subsequent to quarter end:

• "Recommencement of operations at Skaland Graphite mine."

Corporate and Cash

• "Cash: US$1.4 million as at 30 September 2023 (US$5.6 million as at 30 June 2023).
• Borrowings: US$7.9 million as at 30 September 2023 (US$5.8 million as at 30 June 2023)..."

On October 26, Mineral Commodities Ltd. announced : "Accelerated pro-rata non-renounceable entitlement offer."

On November 13, Mineral Commodities Ltd. announced : "Entitlement offer - extension of closing date of retail offer..."

Tirupati Graphite [LSE:TGR]

No significant news for the month.

Northern Graphite [TSXV:NGC][FRA:ONG] (NGPHF)

Northern Graphite purchased from Imerys the Lac des Iles producing graphite mine in Quebec and the Okanjande graphite deposit/Okorusu processing plant in Namibia. They also own the Bissett Creek graphite project located 100km east of North Bay, Ontario, Canada and close to major roads and infrastructure. The Company has completed an NI 43-101 Bankable final Feasibility Study and received its major environmental permit.

On November 1, Northern Graphite announced :

Northern Graphite resumes processing at North America's only producing graphite mine amid rising market demand. Graphite sales volumes rose monthly through the third quarter.

NextSource Materials Inc. [TSX:NEXT] [GR:1JW] (NSRCF)

NextSource Materials Inc. 100% owns the Molo Graphite Mine in Madagascar. The Company also has the Green Giant Vanadium Project on the same property.

No significant news for the month.

Gratomic Inc. [TSXV:GRAT] [GR:CB82] (CBULF)

Gratomic's Aukam Graphite Project is located in Namibia, Africa. Gratomic also 100% own the Capim Grosso Graphite Project in Brazil. Gratomic is also collaborating with Forge Nano to develop a second facility for graphite micronization and spheronization.

On November 13, Gratomic inc. announced :

Gratomic updates the sales agreement and commercial partnership with TM2 Verticals for the supply of value added graphite...TM2 Verticals, in partnership with Gratomic and Suntech Labs of South Africa, has successfully upgraded Aukam graphite concentrate to the required 96% grade concentrate as part of their large scale pilot plant OEM qualification program to generate bulk samples to send to global alkaline battery producers. Approximately 700 kilograms of minimum 96% grade were produced. Gratomic's stockpiled graphite was tested and processed, achieving 96.8% and 97,1% grade concentrate across multiple tests with an average recovery of 80%+...

On November 15, Gratomic inc. announced :

Gratomic provides commercial commissioning update of its Aukam Graphite Mine in Namibia...Since commencing the Commercial Commissioning phase at the end of June 2023 (see Press Release dated June 30, 2023), Gratomic has processed 80 tonnes of material through the processing plant at a grade of 94% Cg concentrate which is being stored on-site in the storage silos...

Graphite developers

Evion Group NL [ASX:EVG] - (Formerly BlackEarth Minerals [ASX:BEM])

On November 23, Evion Group NL announced : "Production set to commence at Evion JV in India." Highlights include:

South Star Battery Metals [TSXV:STS] (STSBF)

South Star Battery Metals' Santa Cruz Graphite Mine (in Bahia Brazil) Phase 1 commercial production is planned for the EOY 2023. The Company also owns the BamaStar Project in Alabama, USA.

On November 8, South Star Battery Metals announced :

South Star Battery Metals announces 2023 positive drilling program results for the BamaStar Graphite Project in Coosa County Alabama and NI43-101 Preliminary Economic Assessment Study update...Richard Pearce, CEO of South Star said, "Our 2023 drilling campaign was extremely successful, and every hole has significant intervals with graphite mineralization. We tested controls and limits at depth, across the ore body, as well as along strike. We discovered a significant deeper mineralized package below what we had previously drilled, and there are several holes that ended in mineralization. We are open at depth and in both directions along strike. These results will be incorporated into an updated resource definition as part of our upcoming PEA scheduled for March 2024, and this deliverable should complete our 75% earn-in requirements on the properties. We are also on schedule to complete our Feasibility Study for Santa Cruz Mine incorporating Phase 3 (50,000 tpa of concentrates) by end of 2024. Our goals are to have two mines producing a total of 100,000 tpa of concentrates, and 60,000-70,000 tpa of vertically integrated graphite production including active anode materials and other critical graphite products in the US in 2027."

Renascor Resources [ASX:RNU]

Renascor Resources Ltd. is an Australian exploration company, which focuses on the discovery and development of economically viable deposits containing uranium, gold, copper, and associated minerals. Its projects include graphite, copper, precious metals, and uranium.

On October 31, Renascor Resources announced :

Quarterly activities report for the period ended 30 September 2023... Optimised Battery Anode Material [BAM] Study confirms compelling economics of Renascor's 100%-owned, vertically integrated graphite mining operation and downstream Purified Spherical Graphite [PSG] facility entirely in South Australia (the BAM Project). Post-tax unleveraged NPV 10 of A$1.5 billion. Post-tax unleveraged IRR of 26%. Average annual EBITDA of A$363 million. Renascor's cash position as of 30 September 2023 was approximately A$128 million...

On November 1, Renascor Resources announced : "LCA Highlights Low Carbon Footprint of Siviour..."

Talga Group [ASX:TLG] [GR:TGX] ( TLGRF )

Talga Group is a technology minerals company enabling stronger, lighter and more functional materials for the multi-billion dollar global coatings, battery, construction and carbon composites markets using graphene and graphite. Talga 100% owned graphite deposits are in Sweden, proprietary process test facility is in Germany.

On October 30, Talga Group announced :

Quarterly activities review for period ending 30 September 2023... Selection of debt consortium for Vittangi Anode Project finance. Talga presenting and exhibiting at globally significant industry events. Cash balance of A$28.2 million as at 30 September 2023...

On October 31, Talga Group announced : "2023 annual report to shareholders..."

Westwater Resources (WWR)

Westwater Resources Inc. is developing an advanced battery graphite business in Alabama. The Coosa Graphite Plant (2023 production start) plans to source natural graphite initially from non-China suppliers and then from the USA from 2028.

On November 15, Westwater Resources Inc announced :

Westwater Resources announces Q3 2023 business and financial updates...During the third quarter of 2023, Westwater completed a debottlenecking study with its third-party engineering firm resulting in design changes that are expected to result in an anticipated 33% increase in coated spherical purified graphite ("CSPG") production for Phase I of the Kellyton Graphite Processing Plant ("Kellyton Plant"). As a result of the study, Westwater now expects to produce 10,000 MT of CSPG annually in Phase I while still remaining within its existing Phase I cost estimate of $271 million. "Increasing expected CSPG production by 33%, while maintaining our estimated budget, is another significant step in improving the economics of the Kellyton Plant," said Frank Bakker, Westwater's President and CEO. "Customer engagement and market demand for domestic CSPG remains strong, and we believe moving to 10,000 MT in response to this market demand enhances Westwater's position as a domestic source of CSPG."...

Magnis Energy Technologies Ltd. [ASX:MNS] (MNSEF)

Magnis is an Australian based company that has rapidly moved into battery technology and is planning to become one of the world's largest manufacturers of lithium-ion battery cells. Magnis has a world class graphite deposit in Tanzania known as the Nachu Graphite Project.

On October 30, Magnis Energy Technologies Ltd. announced : "Full year statutory accounts..."

On October 31, Magnis Energy Technologies Ltd. announced : "Quarterly report for quarter ending September 2023." Highlights include:

• "Magnis increases economic interest in iM3NY.
• iM3NY qualifies for US$2M ESD Grant.
• iM3NY to supply a large battery to the Tanzanian Resettlement Village using stockpiled batteries.
• Increased interest in the Nachu Graphite Project.
• Framework Agreement expected to be finalised soon.
• Magnis makes $10M fully subscribed placement.
• Magnis enters a Standby Equity Deed with Evolution Capital."

On October 31, Magnis Energy Technologies Ltd. announced : "Annual report 2023..."

On November 15, Magnis Energy Technologies Ltd. announced :

iM3NY update...As disclosed on 10 November 2023, a default notice was issued recently with respect to the US$100 million Senior Secured Term Loan Credit Agreement entered into between Imperium3 New York, Inc. ("Borrower") (and others, including iM3NY LLC ("iM3NY") and Charge CCCV LLC ("C4V")) and Lenders as determined from time to time ("Lender") (and others including ACP Post Oak Credit I LLC ("ACP")) ("Credit Facility"1). The Lender has not taken any enforcement action against the security to date and all parties are currently engaged in active dialogue with the Lenders' representative ACP and reviewing multiple short and long term refinancing options. If and when those negotiations are sufficiently certain to be disclosed to the market, Magnis will provide additional updates in accordance with its Listing Rule 3.1 disclosure obligations.

Black Rock Mining [ASX:BKT]

On October 30, Black Rock Mining announced : "Quarterly activities/appendix 5B cash flow report." Highlights include:

• "Non-binding MOU signed with Strategic Alliance Partner, POSCO, comprising: POSCO to secure long-term fines offtake for Mahenge Module 2. Subject to POSCO approval, POSCO to provide an additional equity investment of up to US$40m, or a stake of 19.99% in Black Rock (whichever is lower). Explore additional opportunities for POSCO and Black Rock to cooperate further to develop an Inflation Reduction Act compliant anode supply chain.
• Debt financing process well advanced with Black Rock seeking credit-approved term sheets from potential lenders near term.
• A$8.7M cash at bank at 30 September 2023."

On November 2, Black Rock Mining announced : "Black Rock receives loan approval from The Development Bank of Southern Africa." Highlights include

• "The Development Bank of Southern Africa (DBSA) has approved a loan of up to US$59.6m for Mahenge, which is expected to form part of the overall Project debt funding.
• Potential lenders for Mahenge's debt process includes Development Finance Institutions [DFIS] and several Tanzanian commercial banks.
• Discussions with the other potential lenders are ongoing with additional progress expected near term."

Nouveau Monde Graphite [TSXV:NOU] ( NMGRF ) (NMG) and Mason Graphite [TSXV:LLG] [GR:M01] (MGPHF)

Nouveau Monde Graphite ("NMG") own the Matawinie Graphite Project, located in the municipality of Saint-Michel-des-Saints, approximately 150 km north of Montreal, Canada. NMG (51%) and Mason Graphite (49%) have agreed to JV (subject to approvals) on the Lac Guéret Project.

On November 9, Nouveau Monde Graphite announced : "NMG provides quarterly update: Changing market dynamics and intensified commercial negotiations underpin Phase-2 growth." Highlights include:

• "New restrictions on Chinese graphite exports are forecasted to exacerbate pressure on battery supply chains and accelerate graphite onshoring. NMG is set to become the largest fully integrated producer of natural graphite in North America.
• Québec is rapidly emerging as a prominent hub for the battery supply chain in North America with Tier-1 cell producer Northvolt having just announced plans to establish a 60-GWh cell production facility in the province, abundant natural resources, and clean energy for industrial development.
• As part of intensified commercial negotiations, NMG is working to sign anchor multiyear sales agreements with tier-1 EV/battery manufacturers to provide bankability confirmation to lenders, finalize technical parameters for detailed engineering, and secure long-term value for shareholders.
• Panasonic Energy is now producing EV lithium-ion batteries at its prototype production facilities testing NMG's active anode material, a major step toward a definitive offtake agreement.
• NMG mandated Pomerleau as Construction Manager for the pre-construction stage of both Phase-2 projects to support construction scheduling, workforce planning, jobsite logistics, procurement strategy, health and safety, environment, and quality programs, as well as cost optimization.
• Electrification calendar now established with Caterpillar to deploy early learners and pilot models at Phase-2 Matawinie Mine, to test equipment in actual terrain and weather, and to map the transition to future zero-exhaust-emission production models.
• Market trends remain favorable for the EV/battery sector; September 2023 set a record for global EV sales, with over 1.3 million units sold.
• Period-end cash position of $48.6 million."

Greenwing Resources Limited [ASX:GW1] (BSSMF)

On October 31, Greenwing Resources Limited announced : "Quarterly activities report - September 2023 quarter." Highlights include:

Graphmada Graphite Mining Complex, Madagascar

• "Significant movement in the legislative framework for mining in Madagascar with the passing of the new Mining Code through both houses of Madagascan Parliament.
• Site visit completed with Graphmada site in good condition."

Corporate

• "Equity Raising completed by way of a placement at $0.225 raising $2.7 million.
• Additional $1 million debt facility provided by the Company's Chairman Rick Anthon..."

Triton Minerals [ASX:TON][GR:1TG]

Triton Minerals Ltd. engages in the acquisition, exploration and development of areas that are highly prospective for gold, graphite and other minerals. Triton has two large graphite projects in Mozambique, not far from Syrah Resources Balama Project.

On October 26, Triton Minerals announced : "Quarterly activities report for period ending 30 September 2023." Highlights include:

• "Cobra Plains - Triton was granted a 25 year Mining Concession for the Cobra Plains Graphite Deposit in Mozambique, which has an existing, globally significant graphite JORC Compliant Inferred Mineral Resource estimate of 103 Million Tonnes ("Mt") at an average grade of 5.2% TGC, containing 5.7 Mt of graphitic carbon1. With further drill testing and other exploration work to be completed by Triton, the Cobra Plains deposit is considered to have the potential to be significantly expanded.
• With Cobra Plains, Triton now owns two globally significant graphite resources with a diversified mix of flake sizes which can be applied towards a range of applications from batteries to expandable graphite for building materials.
• Front End Engineering Design: continued works aimed at enhancing the design and reducing the capital requirement for the processing plant and associated non-processing infrastructure for the Ancuabe Graphite Project.
• Early Earth Works Program for the Ancuabe Graphite Project continued, with completion of earthworks for the construction project fly camp and equipment laydown areas.
• Project Management Services Agreement executed with Soluções De Desenvolvimento Sustentável ("SDS") to accelerate the development of both the Ancuabe and Cobra Plains Projects...
• Graphite Market - Following the quarter end, Triton notes that the Chinese government is proposing to restrict exports of graphite materials and products, which is expected to result in improved graphite market fundamentals.
• Cash on hand - A$4.13 million as at 30th September 2023."

SRG Mining Inc. [TSXV:SRG] [GR:18Y] [Formerly SRG Graphite Inc.]

SRG is focused on developing the Lola graphite deposit, which is located in the Republic of Guinea, West Africa. The Lola Graphite occurrence has a prospective surface outline of 3.22 km2 of continuous graphitic gneiss, one of the largest graphitic surface areas in the world. SRG owns 100% of the Lola Graphite Project.

On October 31, SRG Mining Inc. announced :

C-ONE transaction update. Significant regulatory approval progress made with two key Chinese approvals obtained. TSX-V extension obtained to allow transaction closing. SRG Mining Inc. (TSXV: SRG) ("SRG" or the "Company") announced significant progress has been made towards meeting the closing conditions of the proposed private placement, announced on July 10, 2023, to Carbon ONE New Energy Group Co., Ltd ("C-ONE"). Under terms of the agreement, SRG will issue 28,222,380 common shares to C-ONE (or its designated affiliate) through a private placement at a price of C$0.60 per share (the "Private Placement"). The subscription amount is approximately C$16.9 million (US$12.7 million) (the "Subscription Amount")...

Leading Edge Materials [TSXV:LEM] (LEMIF)

Leading Edge Materials Corp. is a Canadian company focused on becoming a sustainable supplier of a range of critical materials. Leading Edge Materials' flagship asset is the Woxna Graphite Project and processing plant in central Sweden. The company also owns the Norra Karr REE project, and the 51% of the Bihor Sud Nickel-Cobalt exploration stage project in Romania.

No graphite news for the month.

EcoGraf Limited [ASX:EGR] [FSE:FMK] (ECGFF)

On October 30, EcoGraf Limited announced :

September quarterly activities report...Project funding program in progress in conjunction with the Company's financial advisers to secure debt financing for construction of the new 73ktpa Epanko graphite mine. Completed negotiations on the Engineering Procurement Construction and Management (EPCM) contract term sheet with contract ready to be awarded for the Front-End Engineering Design (FEED) phase. Cash and deposits as at $34.7m...

Lomiko Metals Inc. [TSXV:LMR](LMRMF)

Lomiko has two projects in Canada - La Loutre graphite Project (flagship) (100% interest) and the Bourier lithium Project (70% earn in interest).

On October 23, Lomiko Metals Inc. announced :

Lomiko Metals reflects on China's move to limit graphite exports and announces corporate update, and Annual and Special Meeting of Shareholders on December 20th, 2023...

On November 23, Lomiko Metals Inc. announced : "Lomiko announces private placement of units and retirement of Executive Chair."

Metals Australia [ASX:MLS]

On October 31, Metals Australia announced : "Quarterly activities report for the quarter ended 30 September 2023." Highlights include:

Lac Rainy Graphite Project, Quebec, Canada

• "During the Quarter the Company announced widespread and exceptionally high-grade graphite sampling results1 from its Lac Rainy Graphite Project Quebec, Canada (see rockchip results location, Figure 1). The latest results are from 80 samples on 10 graphitic trends identified from electromagnetic [EM] imagery. The exceptional rockchip results include a sample containing over 50% graphitic carbon [CG] from a large EM anomaly west of the existing Mineral Resource. The average grade of 80 new samples is over 11% Cg and the combined strike-length of the identified high-grade graphitic zones is over 36km, which represents 20-times the 1.6km strike-length currently drilled and trenched which contains the existing Mineral Resource2.
• The Company plans to drill test the key, high-grade, graphitic trends during the northern winter, targeting greatly expanded resource potential as well as an increased overall grade.
• In parallel with the drilling, the Company will complete a pre-feasibility study [PFS] into developing high-grade flake-graphite production from the Lac Rainy Graphite Project1. The Company will also look to take advantage of its outstanding spherical graphite and battery testwork results and undertake an Options Study into the production of premium battery-grade uncoated spherical graphite for lithium-ion battery anode production."

NGX Limited (100% owned subsidiary of Sovereign Metals [ASX:SVM] [GR:SVM][LSE:SVML])

On October 31, Sovereign Metals announced : "September 2023 quarterly report." Highlights include

Pre-Feasibility Study confirms Kasiya's market leading position in Two Critical Raw Materials

• "Natural Graphite - a key component of an electric vehicle (EV) battery: The world's second largest flake graphite deposit. Potentially one of the world's largest natural graphite producers outside of China at 244kt per annum. China recently announces graphite export restrictions at a time when the anode graphite market is moving into deficit with demand rapidly growing in the lithium-ion battery and EV sectors.
• Compelling project economics with significant upside potential: Post-tax NPV8 of US$1,605m and post-tax IRR of 28%. Average EBITDA of US$415m per annum. Initial Probable Ore Reserves declared of 538Mt, representing only 30% of the total Mineral Resource. Substantial production rate and mine life upside exists as the PFS modelling was limited to only 25 years.
• Forecast cash operating costs of US$404/t of product would position Kasiya as the lowest cost producer of rutile and graphite globally."

Rio Tinto invests $40.6m to become a 15% Strategic Investor

• "Rio Tinto made an investment of A$40.6 million in Sovereign resulting in an initial 15% shareholding plus options to increase their position to potentially 19.99%* within 12 months...
• The Company advancing into an optimisation phase prior to moving to the Definitive Feasibility Study [DFS] with the Company's strategic investor, Rio Tinto."

On November 2, Sovereign Metals announced : "Kasiya lithium-ion battery graphite program significantly upscaled."

Sarytogan Graphite [ASX:SGA]

Sarytogan Graphite has an Indicated and Inferred Mineral Resource of 229Mt @ 28.9% TGC in Central Kazakhstan.

On October 30, Sarytogan Graphite announced : "Agglomerates produced for thermal purification scale up."

For further details see:

Graphite Miners News For The Month Of November 2023