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Battery Minerals Limited (ASX:BAT) has published RIU Explorers Conference presentation on 20 February 2019.
In the presentation, BAT mentioned about the Montepuez Graphite Project (Phase 1) where there is a need for US$39.5m of capex in order to bring the project to its conclusion. The mine life has been predicted for more than 50 years, and the concentrate of graphite mineral reflects 96% TGC in terms of purity. The Ore reserve at present reflects 42.2Mt at 9.3% TGC. The EBIDTA per annum is estimated at more than US$30Mpa.
The Pemba Port allocation is approved for 100,000tpa of graphite concentrate. It is 8-12m deep berthing water, with the capacity between 3 â 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.
The Balama Central Graphite Project Feasibility Study in December 2018 reflects that annual graphite production will be around 58,000pa. The pre-production capital expenditure is estimated at US$69.4 M. Opex (concentrate/t first 8 yrs) is estimated at US$363/t. The mine life of the project has been estimated for +35 years. The Graphite Concentrate recovered consists of +96 % TGC of purity. The Ore reserve reflects 19.7Mt at 11.1% TGC. The Net Operating Cash Flow is estimated at more than US$30 Mpa.
Battery Minerals' production profile:
The Montepuez projectâs first Exports is expected to ramp up to 50,000 TPA (by 2020), Montepuez Stage 2 and Balama Stage 1 is expected to ramp up to 150,000 TPA (by 2022), an addition of Balama Central1 Stage 2 is expected to ramp up to 200,000 TPA (by 2024).
Urbix undertook The Purification and Spheroidisation Testwork . 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. Spheroidising testing has been completed, and its analysis is in progress.
Project Finance progress:
Independent Technical Report was completed on the Montepuez Graphite Project implementation plan. The Independent Marketing Report was completed on the graphite market, offtake and price forecasts. The twelve potential financiers (banks and funds) had signed CAs and are reviewing information in a data-room. Three site visits were conducted for potential financiers and investors. Four non-binding Indicative Terms have been exchanged so far with potential financiers, more expected to be exchanged. Next steps in March and June 2019 Quarters includes a review of and advice on non-binding indicative terms, additional site visits by potential financiers, further due diligence by potential financiers, and legal documentation preparation.
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 â 15 months of project finance being finalized.
At the closure of the trading session for the day (as at 20 February 2019), the stock price of the company stood at A$0.027 with no further changes.
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