Quantum Graphite has returned from the dead
Mining & Resources
Quantum Graphite – formerly known as Valence Industries – will relist on the ASX today after three years in securities purgatory.
Quantum Graphite (ASX:QGL) suspended operations at its struggling Uley graphite project in South Australia – which was bleeding cash at a rate of about $300,000 per month — in in late 2015, before entering administration in July the following year.
The share price tumbled from highs of 70c to 11.5c before the company was suspended.
The share price immediately plummeted almost 96 per cent to 0.5c on re-listing.
The number of shares on offer has increased dramatically – from 199 million when Quantum was suspended, to 7.5 billion shares following the restructure and recapitalisation.
The company is looking to now increase Uley production capacity to a level that is “commercially sustainable”.
This includes preparing a revised mine plan, growing the graphite resource at Uley, and completing a revised definitive feasibility study (DFS), which started in August.
The experts are predicting pricing and demand for graphite is set to steadily rise well into the 2020s, with the growth coming from graphite’s use in lithium-ion battery anodes and in fire-retardant building cladding.
The company has been contacted by Stockhead for comment.