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BlackEarth Minerals (ASX:BEM) transforms Maniry strengths into value propositions

Highlights

  • Graphite from the Company’s Maniry project meets the specifications required for applications in the expandables, refractory and lithium-ion battery industries.
  • BlackEarth’s expandable graphite strategy involves a low-risk/CAPEX entry into the downstream market.
  • The Company continues to engage with several globally significant graphite players to tap the growing market opportunities. 

Australia-based critical commodity developer BlackEarth Minerals NL (ASX:BEM) is making significant headway at its Maniry graphite project in southern Madagascar, focusing on leveraging its world-class potential. 

The recent market trends highlight the crucial use of graphite across a wide range of growing industries. At this significant juncture, graphite from the Maniry project is meeting the usage specifications for the growing refractory, expandables, and lithium-ion battery industries.

RELATED ARTICLE: BlackEarth Minerals’ (ASX:BEM) shares soar on crucial Maniry DFS update

Image Description: Maniry Graphite Project Information  

Source: BEM Presentation, dated 2 September 2021

As a result, BlackEarth is progressing its expandable graphite strategy, which involves low-risk/CAPEX entry into the downstream market to expeditiously provide a higher revenue stream and cash flow. 

ALSO READ: How far has BlackEarth Minerals (ASX:BEM) progressed on its expandable graphite strategy?

With this backdrop, let us explore how the Company is cashing in on its Maniry potential and market opportunities to make a dominant spot in the graphite market. 

BlackEarth pursues exciting activities to leverage Maniry potential

The Maniry project is situated in Madagascar, which has over a century-long graphite production history and is one of the leading graphite suppliers to the major global markets. 

The project tenements, with a granted 40-year mining lease over the Razafy resource, stretch more than 20 square kilometres. Moreover, only ~10% of the 35 large outcropping graphitic areas covering the Maniry tenements has been extensively explored. 

RELATED ARTICLE: BlackEarth Minerals (ASX:BEM) unearths new high-grade graphite zone at Razafy Northwest

Image Description: Maniry Graphite Project Mineral Resources

Source: BEM Presentation, dated 2 September 2021

The proven project location and its vast exploration potential have driven the Company to undertake several enhancement activities.

The Razafy NW drilling program is currently underway to identify higher-grade materials. The Company’s pilot program for higher-grade concentrate is focused on improving graphite recovery.

In essence, the recent exploration endeavours are expected to strengthen the Company’s expandable graphite strategy. 

RELATED ARTICLE: Pilot program results confirm high yields for BlackEarth Minerals’ (ASX:BEM) Maniry graphite project

Value-added partnerships to cash in on market opportunities

In the current upbeat graphite market, end users are becoming increasingly concerned about the security of supply as a decline in coarse graphite flake supply is increasing the prices. On the other hand, the growing demand for electric vehicles combined with growing ESG thematic continues to provide strong tailwinds. 

Furthermore, demand projections by market research reports highlight a positive trend for expandable graphite. 

Additionally, the test results have fared well for the (Maniry) flake graphite flotation concentrate ALS 19212 for preparing expandable graphite. NGS Trading & Consulting GmbH said, “We could not find any restriction which would limit the application of this kind of flake graphite.”

ALSO READ: Which are the factors catalysing the growth of BlackEarth Minerals?

Image Description: Expandable Graphite Product Characteristics

Source: BEM Presentation, dated 2 September 2021

In view of this, BlackEarth continues to engage globally significant value-add partners as part of its expandable graphite strategy, to realise the commercial potential. The Company is focused on advancing its Stage 1 downstream operation, having the potential to uplift revenue/profit.   

Image Description: BEM next steps

Source: BEM Presentation, dated 2 September 2021

BEM stock was trading at AU$0.145 on 13 September 2021, up more than 7% from its closing price. The Company has a market capitalisation of AU$30.02 million.

READ MORE: BlackEarth Minerals’ June quarter marked by major agreements, headways at Maniry graphite project

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