On 5 February 2019, Battery Minerals Limited (ASX: BAT) belonging to the metals and mining sector with focus on the Graphite Project Development, has published a 121-conference presentation.
In the presentation, BAT highlighted the list of the board members of the company, the share price movement during the past 12 months and the capital structure. It also gave an overview of the supply chain management for electric vehicle raw material, its Megafactory Capacity as at October 2018, the minerals Intelligence Flake Supply-Demand Balance, the graphite price forecast, the highlights of phase 1 of Montepuez Graphite Project and its operations, the feasibility study of its Balama Central graphite project, the production profile of battery minerals, the company’s community engagement and its outlook.
Its board members include Jeff Dowling, who is the Non-Executive Chairman. Brett Smith, Gilbert Georg, Paul Glasson, Ivy Chen are the Non-Executive directors. Ben Vanroon is the Chief Operating Officer. Nick Day is the Chief Financial Officer, Nick Stephens is the Head of Marketing, Naomi Scott is the General Counsel, and Tony Walsh is the Company Secretary & GM Corporate.
Based on the graph, the share price of BAT for the past 12 months has gradually fallen. The share price was 2.2 cps with the market capitalization of $24.5 million (as at 25 January 2019). The cash at the bank as at 31 December 2018 was $7.2 million. The enterprise value of the company was recorded at $17.3 million.
The company plays an essential role in the supply chain management of the electric vehicle raw materials. The company made an exponential growth in Megafactory capacity by October 2018. It also highlights its graphite forecast till 2035 and the challenges which it might face. The company expects that by 2035, it would be able to produce approximately 5.5m tonnes of graphite. There will also an increase in the demand of graphite. However, they might face challenges due to the structural deficit in 2026, substitution risk from silicon, solid state and manufacturing advances.
As per the statistical graph in the presentation from CY2000 to CY2017, anode materials sale increased from 3,500 tonnes to 170,000 tonnes. The company expects this to grow in the upcoming years keeping in mind that there is an increase in the graphite demand in China and Japan.
Other than that, the company also highlighted the phase 1 of the Montepuez Graphite Project where it requires US$39.5 million of capital expenditure for its completion. The mine life of the project is 50 years. The graphite concentrate recovered has more than 96% TGC of purity. The current ore reserve of the project is 42.2Mt at 9.3% TGC.
The company provided an update of mine to the market value chain. Beijing's Mining and Metallurgical Research Institute conducted the test. The prepared flowsheet is easy, conventional to look at and flexible to allow for economic product optimization. The pieces of equipment selected were tried and tested in graphite applications. There was a large number of constructors and contractors in Mozambique with experienced transporters available locally. There were good labour sources in Montepuez and Pemba.
The feasibility study at the Balama Central Graphite Project got completed, and the mining application will be submitted in 2019. The company will further take steps toward the completion of Montepuez project finance, detailed engineering and procurement, awarding remaining construction contracts, Urbix, Anode and other downstream Scoping Study, construction of the process plant and other infrastructure, investigating Vanadium and looking for other opportunities.
By the closure of the trading session on 5 February 2019, the closing price of the share was A$0.023 with the market capitalization of A$27.84 million and has approximately 1.11 billion outstanding shares.
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