The West Perth-based Battery Minerals Limited (ASX: BAT), formerly known as Metals of Africa Limited, is engaged in varied mining development and mineral exploration activities in East Africa. It has a particular interest in zinc/lead, graphite and copper deposits.
At the start of market trading on April 2nd, 2019, the securities of Battery Minerals were placed in a trading halt awaiting the release of an announcement (regarding interim fund raising) to the market. The halt is expected to last until the commencement of regular trading on Thursday, April 4th, 2019.
The company’s current market valuation stands over AUD 34 million to date with approximately 1.11 billion outstanding shares. The BAT stock closed the trading on April 1st, 2019 at the last sell-off price of AUD 0.031. Also, BAT has generated a positive year-to-date return of 29.17% so far.
Recently, Battery Minerals released the Paydirt’s Battery Minerals Conference March 2019 Presentation which entailed numerous crucial points. As per the projection by the Benchmark Mineral Intelligence (BMI), the sector-wise compound annual growth rate (CAGR) of demand for Graphite by 2018-2035 is estimated to be 22% for the battery market and 4% for other industrial applications. With this backdrop, the company believes that its product range meets the precise requirements of the high growth electric vehicle (EV) battery and energy storage sectors.
Currently, the company is focussed on developing its two high potential graphite assets in Mozambique. Significant headways have been achieved for the Montepuez Graphite Project with mining licence granted, project finance to be delivered by Original Capital, port allocation and offtake agreements in place while construction and lender engagement is underway. With an estimated total capex of USD 51.2 million (USD 13.8 million already spent) and a mine life of over 50 years, there are no regulatory impediments to commence the production and exports at this site.
As for the Balama Central Project, the feasibility study was completed in December 2018, and it has an estimated capex of USD 69.4 million with a mine life of over 35 years. The environmental and social impact assessment (ESIA) is ongoing and expected to be submitted shortly.
Based on the October 31st, 2018 BMI FOB China graphite prices, the basket price of Montepuez 96% TGC graphite concentrate is USD 1,064.63/t. Similarly, as per the recent BMI CIF China graphite prices for eight years starting 2022, the forecast basket price of Balama Central 96% TGC graphite concentrate in 2022 is USD 1,106/t for the weathered material and USD 1,275/t for fresh material.
On March 22nd, 2019, Battery Minerals released its report for the full year 2018, posting the loss after tax of ~ $ 7.24 million, up on ~ $ 5.82 million in the prior corresponding period (PCP). The company’s net assets increased from $ 17,846,393 as at December 31st, 2017 to $ 44,644,650 as at December 31st, 2018 due to the capitalised exploration and evaluation and mine development expenditure incurred during the financial year. Meanwhile, the working capital marginally reduced to $ 6,638,314 and the net cash and cash equivalents amounted to $ 7,252,709.
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