Evion and Metachem are targeting production of 2,000-2,500tpa for years 1-3 from the Panthera Graphite Technologies facility being jointly developed in India. Pic via Getty Images.
Mining
Construction of the Panthera Graphite Technologies (PGT) JV between Evion and Metachem in India is advancing rapidly – with the company confident the project is on track for first production next quarter.
The timing couldn’t be better. End-users are becoming increasingly concerned about security of suitable graphite supply, with analysts forecasting a deficit by 2025 due to demand from the EV market, which is expected to require 60% of graphite production by the end of 2030.
The majority of equipment has been ordered with most expected to be on site over the next two months in preparation for installation and commissioning – which is expected to start in November.
Plus, key executive and management teams are already in place and working on site, with the production team to commence over the next quarter.
Orders for graphite concentrate to supply the plant are being finalised, with an initial 500t to be delivered in the first quarter of production.
The JV has forecast that production will commence at between 2,000-2,500tpa for years 1-3, increasing to 4,000-5,000tpa from year 3.
Graphite concentrate will be sourced from external parties for years 1-2 of operations with product from the company’s Maniry graphite project in Madagascar – which is inching closer to development – planned to supply operations from year 3 onwards.
Evion Group’s (ASX:EVG) partner Metachem has been producing expandable graphite and supplying products to the worldwide market for decades, with a strong business model that provides a degree of commercial security and proven operational knowhow to the JV.
Evion’s share of the JV’s CAPEX is fully funded by capital contributed and a loan facility to be repaid from future cash flow.
Gross revenue is expected to be US$7m in the first year of operations, growing to US$18mpa following the expansion of production.
“The PGT management and construction team is doing a wonderful job in fast tracking development of our production site at Kurkumbh (near Pune),” EVG MD Tom Revy said.
“Extensive infrastructure is now in place, and we expect the main manufacturing building will be completed soon with equipment to be installed and commissioned shortly after.
“This will pave the way for the start of production and cashflow in the coming quarter, enabling us to capitalise on the strong global demand for expandable graphite.”
Negotiations are continuing with offtake partners in Europe to conclude detailed pricing and very favourable commercial terms for the sale of expandable graphite to Europe.
And based on strong market pricing at present, the JV expects it will be able to achieve product sales pricing more favourable to that assumed in the scoping study – which was released in July 2022.
This article was developed in collaboration with Evion Group Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
