Lincoln Minerals' Staged Development Strategy for Kookaburra Graphite Project

Staged Development Strategy

Lincoln Minerals Limited has outlined a staged development strategy for its Kookaburra Graphite Project (KGP) as part of its ongoing Pre-Feasibility Study (PFS). The strategy aims to deliver strong returns even at low graphite prices, leveraging the unique competitive advantages of the KGP.

Lincoln plans to become Australia's first graphite producer from the existing mining lease, with project expansion to follow. The proposed strategy is expected to deliver industry-leading costs, operating margins, capital efficiency, and a swift timeline to first ore.

Phase 1 and Phase 2

Phase 1 of the development strategy targets the production of up to 20,000 tonnes per annum (tpa) of high-quality graphite concentrate from the existing mining license (ML 6460). Phase 2 aims to expand operations to produce up to 75,000 tpa of graphite concentrate after obtaining the necessary mining license expansions.

Lincoln's strategy leverages the high-grade core at the surface, which is expected to result in lower operating costs and higher margins. The existing mining license accelerates the timeframe to first ore, while the existing infrastructure minimizes capital and approvals timeframes.

Competitive Advantages

Lincoln has identified three key competitive advantages that underpin the KGP's potential:

• High-grade core at surface: The unique geological setting with high-grade graphite from the surface eliminates the need for pre-stripping, translating into lower operating costs.
• Existing Mining License: The existing mining license (ML 6460) supports a rapid development timeframe for the initial phase of the project.
• Existing Infrastructure: Proximity to power, water, and roads, along with the regional center of Port Lincoln, reduces capital and operating costs and accelerates the timeline to production.

CEO's Statement

Lincoln CEO Jonathon Trewartha stated, 'Lincoln’s Kookaburra Graphite Project is unique in Australia, benefiting from extremely high-grade graphite at the surface, requiring no pre-strip. With a Mining Lease already approved and high grades at the front end of the production schedule, Lincoln is likely to generate attractive returns, even at low graphite prices.'

'Our strategy to stage the development and initially focus on the high grade at KGP will allow us to progress to first ore potentially quicker than any other Australian project, enabling Lincoln to deliver production-scale graphite concentrate for qualification in the EV markets while planning the development of a larger project to meet global demand for high-quality anode material.'

Next Steps

Lincoln will continue to progress all relevant project workstreams to deliver a staged development PFS for KGP by 4QCY24. Further updates will be provided as key project or study-related milestones are met.

Graphite Pricing Update

Coinciding with the PFS for KGP, Lincoln notes a significant ex-China graphite pricing premium. Current low graphite prices contrast with the requirement for higher incentive pricing needed to bring new, non-China supply sources to market. Recent data suggests that ex-China graphite pricing is now more than 20% higher than China-based supply sources.

This pricing premium shows strong potential to remain in place and will be a significant benefit when underlying graphite prices increase, as widely forecasted by numerous graphite pricing agencies in response to the expected significant increase in EV-related demand.