Battery Minerals Limited (ASX: BAT) has released Arlington Pre-Daba Conference Presentation. The Benchmark Minerals Intelligence (BMI) study report on Megafactory Capacity Oct 18 reflects whether the mining industry can keep up with the Graphite Forecasts and Challenges.
The BAT’s presentation mentions its Montepuez Graphite Project – Phase 1 which used the US$39.5 M capex to complete it in less than 2 years. The EBITDA per annum was more than the US$ 30 Mpa. The Montepuez Graphite Project has completed RC Grade control at Buffalo and Elephant deposits.
The Feasibility Study at Balama Central Graphite Project stated that Capex (pre-production) is estimated at US$69.4 M and the project payback is approximately 2.3 years. The net operating cash flow is expected to be less than US$30 Mpa.
The Pemba Port allocation is approved for 100,000tpa of graphite concentrate. It is 8-12m deep berthing water, with the capacity between 3 – 4Mtpa cargo and goods. Roughly, 30,000t to 40,000 vessels have geared with the container and break-bulk facilities. The vessel availability is required as Pemba is located on coastal shipping route between Durban and Dar es Salam. Port Authorities are planning the expansion of capacity and security for 2020. It is currently loading 12-14 containers per hour (CPH) expanding to 20 CPH.
Battery Minerals’ production profile: The Montepuez project’s first Exports is ramping up to 50,000 TPA (by 2020) , Montepuez Stage 2 and Balama Stage 1 is expected to be ramped up to 150,000 TPA (by 2022), an addition of Balama Central1 Stage 2 is expected to be ramped up to 200,000 TPA (by 2024).
The Purification and Spheroidisation Testwork shows that Urbix undertook the test work programme. The progress to date is that there is a purification success with Urbix being environmentally friendly, and the low temperature was less than 80 degrees C, non-HF, process with no impact on flake morphology. The Spheroidising testing has been completed and its analysis is in progress.
The Next Steps for BAT are to complete Montepuez project finance, detailed engineering and procurement, award remaining construction contracts, complete Urbix, Anode, and other downstream Scoping Study, construct process plant and remaining infrastructure, start mining processing and exporting, investigate Vanadium and other opportunities and complete construction of Montepuez within 12 – 15 months of project finance being finalized.
Looking at BAT’s stock performance over the last few months, the stock has generated a negative return of 80.91% during the past twelve months. The stock closed the day’s trading session at A$0.023 (as on 1 February 2019) up by 9.524% or 0.002 points. BAT has 1.11 billion shares outstanding with a market capitalization of circa $23.39 million. The 52-week high and low of the company are marked at A$0.110 and A$0.020 respectively. The stock has generated a negative return of 12.50 till date to its investors this year. The earnings per share of the company stands at – AUD 0.010.
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