Battery Minerals Limited (ASX: BAT), formerly known as Metals of Africa Limited, is a West-Perth, Australia-based company engaged in diversified mining development and mineral exploration in East Africa. The company’s core interest lies in graphite, zinc/lead, and copper deposits. Of late, BAT’s primary targets are the two high potential graphite development assets – Balama Central Project and Montepuez Project located in Mozambique. Commercial production is expected to begin soon following the completion of respective feasibility and bankable studies.
On 6 February 2019, the group has released Benchmark Mineral Intelligence (BMI) presentation wherein the group highlighted about Montepuez Graphite Project – Phase 1, Pemba Port, other operational activities along with business outlook. Following the release, the share price of the company increased by 4.348% on 6 February 2019.
The Updated Resources, Reserves and Mining Plan for Montepuez Graphite Project were out in the last quarter highlighting some insightful points. The mine life with a production rate of 50ktpa has been estimated at +50 years at 11.0% with an expected average C1 cost for the first ten years to be USD 360.9/t FOB Pemba. Besides, the estimated current price for Montepuez 96% TGC concentrate is USD 1,064/t. The pre-production outstanding CapEx spending has been reported at USD 39.5 million. With all construction milestone achieved, earthworks completed, as well as low capital and operating cost, the project is expected to deliver outstanding financial returns.
As per the Mining exploration entity and oil & gas exploration entity report for the quarter ended December 31st, 2018, there were massive cash outflows from operating activities at $5.06 million. However, the net increase in cash and cash equivalents remained positive at around $7.17 million due to the presence of large positive cash balance at the beginning of the quarter accumulated from financing activities in the previous quarter.
Similarly, the company also released the results for the Balama Central Feasibility Study. The estimated Ore Reserve is 19.7Mt at 11.1% TGC with a mine life expectancy of 27 years at a production rate of 58ktpa at 96% TGC. The average C1 operating cost for the first eight years is USD 363/t and the current price for the Balama Central 96% TGC concentrate is estimated at USD 1,106/t. The project CapEx has been reported at USD69.4 million. Balama Central presents a lucrative large flake graphite opportunity, which could enable the company to encash higher graphite basket prices in the upcoming period.
At the backdrop of the lithium battery boom being stimulated by the rising preference for electric vehicles and solar power, there is a robust economic outlook for the rise in demand and prices of graphite. Battery Minerals looks well positioned to capitalize on the opportunities ahead.
We would now see how Battery Minerals Limited’s stock has performed in the past few months. The last traded price of BAT stood at A$0.24 per share. The market capitalisation of Battery Minerals Limited stood at ~$25.61 million. Coming to the past performance, the stock of Battery Minerals Limited had delivered the return of -20.69% in the span of prior six months while, in the time frame of prior three months, the company’s stock posted the return of -14.81%. However, in the time frame of the last five days, the stock of Battery Minerals Limited had given the return of 4.55%. The stock has a 1-year low of AUD 0.020 and a 1-year high of AUD 0.095.
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