Sarytogan Graphite's Pre-Feasibility Study Shows Strong Potential
SGA (SGA) Share Update August 2024 Sunday 11th
Sarytogan Graphite Announces Positive Pre-Feasibility Study Results
Sarytogan Graphite Limited has released the results of its pre-feasibility study (PFS) for its graphite project, indicating strong economic potential and a strategic development plan.
Instant Summary:
- Initial Capex of $62 million for Stage 1a.
- Internal Rate of Return (IRR) of 33% for Stage 2a.
- Pre-tax Net Present Value (NPV) of $518 million for Stage 2a.
- 60-year initial mine life with 229 Mt @ 29% JORC Mineral Resource.
- Beneficiation, purification, and spheronisation rates detailed for various stages.
Project Overview
The pre-feasibility study (PFS) for Sarytogan Graphite's project has shown promising results. The initial capital expenditure (Capex) for Stage 1a is estimated at $62 million, with an internal rate of return (IRR) of 33% for Stage 2a. The project boasts a pre-tax net present value (NPV) of $518 million for Stage 2a, indicating substantial economic potential.
The study outlines a 60-year initial mine life, supported by a JORC Mineral Resource of 229 million tonnes (Mt) at 29% total graphitic carbon (TGC). The maiden probable ore reserve stands at 8.6 Mt at 30% TGC.
Development Strategy
The PFS details a staged development strategy, with various stages focusing on beneficiation, purification, and spheronisation. Stage 1a involves a beneficiation rate of 50 ktpa, while Stage 2a focuses on a purification rate of 18.5 ktpa. Stage 2b will see a spheronisation rate of 7 ktpa.
Product and Market Insights
Sarytogan Graphite aims to produce high-purity graphite products for industrial and advanced industrial uses. The Micro Crystalline 'Micro80C' product is targeted for industrial use, while the Ultra High Purity Fines (UHPF) product, with up to 99.9992% carbon, is intended for advanced industrial applications such as cathode conductivity enhancers and nuclear moderators.
The market for graphite is expected to grow significantly, driven by the increasing demand for electric vehicles (EVs) and lithium-ion batteries. Sarytogan Graphite plans to place its high-quality graphite products in various markets, competing with Chinese synthetic graphite.
The positive results from the pre-feasibility study are likely to boost investor confidence in Sarytogan Graphite. The strong economic indicators, such as the high IRR and substantial NPV, suggest that the project is financially viable and has significant growth potential. The focus on high-purity graphite products positions the company well in the growing EV and battery markets.
Investor Reaction:
Analysts are expected to react positively to the PFS results, given the strong economic indicators and strategic development plan. The detailed breakdown of the project's stages and the focus on high-purity graphite products are likely to be well-received by investors.
Conclusion:
Investors should closely monitor Sarytogan Graphite's progress as it moves towards the definitive feasibility study (DFS) and further project development. The promising PFS results indicate a strong potential for growth and profitability, making Sarytogan Graphite a company to watch in the graphite and EV markets.