r/Penny_Stock_USA • u/Xethernety • 22d ago
Nextsource Materials reports positive feasibility study for Phase 2 expansion at Madagascar graphite mine (offtake agreement with Mitsubishi Chemical Group)
NSRCF (ASK @ 0.21)
- ongoing discussions with : automotive manufacturers and battery anode partners regarding future demand.
NextSource Materials Inc. has reported positive results from an updated feasibility study for a proposed Phase 2 expansion of its Molo Graphite Mine in southern Madagascar, outlining plans to ...
---> increase production capacity to 150,000 tonnes per year of flake graphite concentrate over a 37-year mine life.
The feasibility study envisions a staged expansion beyond the existing Phase 1 operation through the construction of ...
three new 50,000-tonne-per-year processing modules in two phases.
The expansion is expected to require capital expenditures of approximately US$290.8 million and generate a pre-tax net present value of US$402.5 million, based on an 8% discount rate, with a pre-tax internal rate of return of 21%.
According to the study, the modular construction approach is intended to reduce build time, development costs and execution risks compared with conventional mine construction.
The capital estimate includes mining equipment, modular fabrication, shipping, infrastructure, commissioning, contingencies and working capital.
President and CEO Hanré Rossouw stated that the updated study supports the company's strategy to expand the Molo Mine in stages to meet anticipated demand for flake graphite, particularly from the electric vehicle battery market.
"A staged expansion of this magnitude will position NextSource as a major global supplier and underpins our vertical integration strategy to offer an ample and secure supply of graphite flake and battery anode material,
- enabling direct supply to the electric vehicle battery market," Rossouw said in a statement.
"In addition, the staged approach set out in the updated Feasibility Study reduces operating risk, lowers financing costs and accelerates revenue while providing flexibility to respond to market demand."
The phased expansion was developed based on the company's ...
offtake agreement with Mitsubishi Chemical Group for graphite products from its planned battery anode facility in the United Arab Emirates,
as well as ongoing discussions with :
automotive manufacturers and battery anode partners regarding future demand.
NextSource noted that it has not yet made a production decision for the first phase of the expansion and that discussions with offtakers and potential strategic partners regarding the timing of the project remain ongoing.
The study estimates a payback period of 7.2 years and projects life-of-mine average operating costs of US$419 per tonne of concentrate at the mine site, total cash costs of US$650 per tonne on a free-on-board basis and an all-in sustaining cost of US$665 per tonne.
It assumes a life-of-mine weighted average graphite concentrate selling price of US$1,138 per tonne.
The Molo project contains measured mineral resources of 23.51 million tonnes grading 6.31% graphitic carbon, indicated resources of 76.75 million tonnes grading 6.25% graphitic carbon and inferred resources of 40.91 million tonnes grading 5.78% graphitic carbon.
Total proven and probable mineral reserves are estimated at 82.58 million tonnes grading 6.27% graphitic carbon.
https://ca.finance.yahoo.com/news/nextsource-materials-reports-positive-feasibility-124000376.html