Company Overview

Company Overview

About Graphex

Graphex Mining Limited is an Australian exploration and development company, focused on advancing the Chilalo Graphite Project located in south-east Tanzania.

Graphex has entered into agreements with leading U.S. private investment firm Castlelake L.P. to raise up to US$80 million for the development, construction and ramp-up of its Chilalo Graphite Project. The funding is comprised of US$5 million from the issue of Interim Loan Notes and subject to satisfaction of certain conditions, up to US$40 million in equity and up to US$40 million from the issue of senior secured loan notes. Upon satisfaction of those conditions, Graphex will be fully funded to production. Details of the funding agreement with Castlelake are set out in an announcement dated 29 October 2018.

Chilalo is host to a high-grade Mineral Resource (and an Ore Reserve) with a demonstrated ability to produce a premium graphite product with a substantial portion of large and jumbo flake material. Chilalo graphite possesses outstanding expandability characteristics, making it ideally suited to the rapidly growing expandable graphite market.

Graphex has an experienced board and management team with specific skills, and extensive experience, in African based project development, exploration, mining and processing. The Company has strong relationships with local communities and a well-established presence in Tanzania through its long history of exploration in the area surrounding Chilalo.

Chilalo Graphite Project

  • Subject to satisfaction of conditions, fully funded to production
  • Produces a high quality product
    • 57% in large, jumbo and super jumbo flake categories
    • Saleable product grades achieved from basic flotation
    • Exceptional expandability at low temperatures
  • Focused on supplying the rapidly growing, high value expandable graphite market
  • Chilalo is technically sound with high margins, low capital intensity and attractive returns, results of a pre-feasibility study completed in September 2018 include:
    • Pre-tax NPV of US$349 million
    • Pre-tax IRR of 131%
    • Pre-tax payback period of 0.84 years
    • Annual production rates:
      • 58,000 tonnes in years 1 and 2
      • ~100,000 tonnes in year 3 onwards
    • Pre-production capital cost of US$44 million
    • FOB operating costs of US$500 per tonne
    • Forecast basket price of $1,777 per tonne – attractive operating margin of $1,277 per tonne
  • High grade JORC Mineral Resource and Ore Reserve – September 2018:
    • Indicated and Inferred resources of 16.9Mt grading 10.2% TGC for 1,722kt of contained graphite
    • Total JORC Mineral Resource: Indicated and Inferred resources of 53.5Mt grading 5.6% TGC for 2.9Mt of contained graphite
    • Probable Ore Reserve 5.3Mt grading 10.9% TGC for 576kt of contained graphite
  • Significant resource upside
    • Exploration target tonnage (100-350Mt @ 3-11% TGC)
    • High conductance EM targets located on the Chilalo Mining Licence area
  • Fully permitted for project development – Mining Licence granted November 2016

Location of Chilalo Project