Graphite One Announces Pre-Feasibility Study Results
Graphite One (TSXV:GPH) (OTCQX:GPHOF) Releases Results of Pre-Feasibility Study for the Graphite One Integrated Project
- Graphite One has released a pre-feasibility study (PFS) for its Graphite One Project
- The PFS outlines a parallel strategy to develop both the Graphite Creek Mine and a secondary treatment plant in Washington State
- The Company expects to qualify for tax credits under the recently announced Inflation Reduction Act of 2022
- “Robust” economics before accounting for said tax credits include a pre-tax 26.0% IRR, $1.9 billion NPV (8%), and 4.6-year payback
- Graphite One expects post-tax results to further improve once Inflation Reduction Act of 2022 tax credits are accounted for
- Shares in Graphite One (GPH) closed trading on the TSXV at CA$1.29 per share
Graphite One has released a pre-feasibility study (PFS) for its Graphite One Project, outlining a parallel strategy to develop both its Graphite Creek Mine in Alaska and a commercial scale battery anode materials manufacturing facility in Washington State.
The secondary treatment plant (STP) in Washington State is expected to address the strong demand for electric vehicle (EV) battery anode materials projected for the United States in the next decade.
The Graphite Creek Mine is expected to produce over 51,000 tonnes of graphite concentrate per year over the projected 23-year mine life.
Anchored by a steady supply of materials from Graphite Creek, the Company expects that, once completed, the STP will produce approximately 77,000 tonnes of manufactured graphite products annually, including anode materials as well as purified and unpurified graphite materials.
Compared to previous results released by the Company in 2019, the PFS demonstrated a 197% increase in measured plus indicated resources and an increase of 177% in inferred resources.
The PFS also demonstrated a “robust” pre-tax internal rate of return of 26.0%, using an 8% discount rate, with a net present value of $1.93 billion and a payback period of 4.6 years over the combined 26-year project life.
With the U.S. government’s recent introduction of the Inflation Reduction Act of 2022, Graphite One expects to qualify for tax credits as a producer of both anode materials and purified graphite in the United States.
Before accounting for tax credits enacted by the U.S. Inflation Reduction Act of 2022, effective December 31, 2022, post-tax estimates for the Graphite One Project include an internal rate of return of 22.0%, using an 8% discount rate, with net present value of $1.36 billion and a payback period of 5.1 years.
Graphite One continues to develop its Graphite One Project, whereby the company could potentially become an American producer of high grade Coated Spherical Graphite as used in EV and lithium-ion batteries, as well as other forms of advanced graphite materials.
Shares in Graphite One (GPH) closed trading on the TSXV at CA$1.29 per share.
On the OTCQX, GPHOF was up 0.09% to US$0.99 per share.
To learn more about Graphite One Inc. and its Graphite One Project, visit the Company’s website. To read the full press release, click here.
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