Volt Resources Surpasses Graphite Targets, Advances Tanzanian Project Amid Cost Cuts
Volt Resources exceeded its graphite production goals in Q4 2024, producing over 800 tonnes at its Ukrainian Zavalievsky mine, while progressing development of its Tanzanian Bunyu Graphite Project and refining a novel US-based purification process.
- Zavalievsky Graphite production restarted, exceeding 638 tonnes target with 800+ tonnes total in Q4
- Appointment of Ostap Kostyuk as Director of Zavalievsky Graphite to strengthen local leadership
- Ongoing negotiations and strategic partnership discussions for Bunyu Graphite Project development
- Advancement of low-cost, HF-free graphite purification process with patent protection in the US
- Company implemented significant cost reductions and secured $1.266 million placement post-quarter
Graphite Production Exceeds Expectations
Volt Resources Limited (ASX: VRC) marked a successful quarter ending December 31, 2024, with the restart of production at its Zavalievsky Graphite operation in Ukraine. The company initially targeted approximately 550 tonnes of graphite but surpassed this by producing over 638 tonnes in just 12 days of operation, averaging 53 tonnes per day. Total graphite output for the quarter exceeded 800 tonnes, underscoring operational momentum despite challenging market conditions.
Leadership at Zavalievsky was bolstered with the appointment of Ostap Kostyuk as Director. Kostyuk, a Kyiv Institute of Law graduate and recent PhD in Law, brings deep operational knowledge and local expertise, positioning the site for optimized performance and regulatory navigation.
Progress on Bunyu Graphite Project in Tanzania
Volt continues to advance its flagship Bunyu Graphite Project in Tanzania, a strategically located asset near key infrastructure including sealed roads and a deep-water port. While a planned meeting with Tanzania's Ministry of Minerals was postponed, the company is actively negotiating Framework and Shareholders Agreements critical to Stage 1 development. Discussions with a strategic partner on funding and project execution are progressing, with a binding agreement anticipated to be announced in due course.
Innovative Graphite Purification Process Gains Traction
In the United States, Volt is pushing forward with its novel graphite purification technology, which eschews hazardous hydrofluoric acid in favor of a safer, lower-cost process. The company extended its provisional patent application to protect this intellectual property and initiated an internal pre-feasibility study for a planned US graphite refinery. This environmentally friendly process offers advantages in capital and operating costs, permitting ease, and ESG impact, potentially positioning Volt as a competitive supplier of ultra-high purity graphite for battery applications.
Financial Discipline and Capital Raising
Volt ended the quarter with a modest cash balance of $165,000 but swiftly secured $1.266 million through a placement heavily supported by its top 20 shareholders. The company also repaid a loan facility post-quarter, reflecting a focus on strengthening its balance sheet. Operating cash outflows were reduced to $243,000 for the quarter, down from $379,000 previously, driven by rigorous cost control measures including director fee equity conversions, staff reductions, and administrative outsourcing reviews.
Outlook and Strategic Focus
CEO Prashant Chintawar emphasized the company's pivot towards high purity graphite production amid subdued flake graphite prices. With the new purification reactor operational from January 2025, Volt expects to generate technical data supporting commercial-scale production in the coming quarter. Despite setbacks in initial US government grant applications, optimism remains high for securing funding to support the US refinery strategy. Meanwhile, exploration activities in gold projects in Guinea and lithium projects in Serbia remain on hold as Volt concentrates resources on its core graphite and battery materials initiatives.
Bottom Line?
Volt’s operational gains and strategic cost discipline set the stage for critical developments in graphite purification and Tanzanian project advancement, but funding and market price dynamics remain key watchpoints.
Questions in the middle?
- When will Volt finalize the binding agreement with its strategic partner for Bunyu Stage 1 development?
- How will Volt’s novel HF-free purification process scale commercially and impact its competitive positioning?
- What are the implications of sustained low flake graphite prices on Volt’s near-term revenue and project economics?
