GROC RNS7 May 2024 07:04
Highlights
· Pre-Tax Net Present Value at 8% discount rate (NPV8) of US$837M with Internal Rate of Return (IRR) of 33.8%.
· After-tax NPV8 of US$545M with IRR of 25.3%.
· Total gross revenue of US$6.5Bn over the 22-year period, with total gross profit totalling US$2.7Bn.
· Years of operation set at 22 to match that planned for the Amitsoq graphite mine.
· 4-year payback period on capital from start of production.
· Initial capital cost (Capex) of US$321M inclusive of a 25% contingency.
· Average operating cost (Opex) of US$2,211 per tonne of CSPG.
· Average annual processing of 80,000t of graphite concentrate at 95% graphitic carbon (C(g)) with production of 39,700t of active anode material in the form of coated spherical purified graphite (CSPG).
GreenRoc's CEO, Stefan Bernstein, commented:
"The Feasibility Study in respect of GreenRoc's planned downstream processing plant has delivered excellent results, with an after-tax NPV8 of more than half a billion US dollars. Having employed the industry's standard techniques and premium instrumentation where possible, we are confident of the robustness of the Feasibility Study. This view is corroborated by the inclusion of a 25% contingency which forms part of the modelled capital cost of US$321M.
"This Feasibility Study firmly places GreenRoc as one of the few contenders to supply the European EV Battery industry with domestically produced active anode material. On behalf of GreenRoc, I would like to extend our gratitude towards Innovate UK for the generous support of a £250k grant towards this Feasibility Study though its Automotive Transformation Fund.
"There are further possible improvements to the process design which we will be looking into in a second stage, commencing shortly, and we will provide updates on that in due course.
"With the already positive Preliminary Economic Assessment of the Amitsoq graphite mine and now this compelling assessment of the economics of establishing a downstream anode processing plant for our graphite, our confidence in our plans for a vertically integrated production model for Amitsoq, from mine to battery anode material production, has been greatly reinforced."
Sign In
Follow the stocks
