- Renascor’s (RNU) Siviour BAM study confirms its status as a low-cost and high-value Australian supplier of graphite for lithium-ion battery anodes
- The BAM project holds an estimated post-tax unleveraged NPV10 of $1.5 billion, a post-tax IRR of 26 per cent, and an average annual EBITDA of $363 million
- Funding for RNU’s start-up CAPEX will combine existing cash of $129 million with debt, covering $214.5 million for upstream operations and $394.6 million for downstream operations
- RNU is actively negotiating with Export Finance Australia, the Clean Energy Finance Corporation, and potential project partners like POSCO and Mitsubishi Chemical
- RNU shares are down 7.89 per cent, trading at 17.5 cents at 2:54 pm AEST
Renascor Resources (RNU) has received the results of its Siviour battery anode material (BAM) study, confirming the project’s status as a low-cost and high-value supplier of 100 per cent Australian-made graphite for lithium-ion battery anodes.
The study has identified economic potential in utilising Renascor’s vertically integrated graphite mine and downstream purified spherical graphite (PSG) facility located entirely in South Australia (the BAM project).
The BAM project demonstrates a post-tax unleveraged NPV of $1.5 billion, a post-tax internal rate of return (IRR) of 26 per cent, and an average annual EBITDA of $363 million.
Moreover, the project is projected to maintain a globally competitive estimated PSG gross operating cost of $2706 per tonne over the initial 10 years, and $2803 per tonne over the 40-year mine life.
These estimations also encompass a graphite concentrate operating cost of $615 per tonne over the initial 10 years and $711 per tonne over the mine life.
Renascor will fund its start-up CAPEX through its existing cash of $129 million, supplemented by debt. The estimated capital requirement for upstream operations is $214.5 million, while downstream operations entail a capital cost of $394.6 million.
The company is implementing a phased development strategy to align its downstream start-up with the PSG market, initiating with graphite concentrate production before transitioning to PSG.
“By integrating the world-class Siviour graphite deposit with an in-country downstream manufacturing facility, the BAM study provides a clear path to creating a competitive advantage as a low-cost producer of purified spherical graphite,” RNU Managing Director David Christensen said.
“We look forward to using the results of this study to assist in securing binding offtake and funding to permit us to advance into construction and operation of an important new supply line for the lithium-ion battery industry.”
To finance these operations, RNU is seeking funding from various sources. The Australian Government, through its Critical Minerals Facility, has granted a loan facility of $185 million for the BAM Project’s development.
Renascor is also in discussions with Export Finance Australia (EFA), the Clean Energy Finance Corporation (CEFC), commercial lenders, and potential project partners, including POSCO and Mitsubishi Chemical.
Renascor’s next steps include finalising binding offtake agreements and completing lender due diligence before initiating early contractor involvement.
RNU shares were down 7.89 per cent, trading at 17.5 cents at 2:54 pm AEST.