Renascor Reports A$108M Cash and Exceeds Graphite Recovery Targets in Q4

Upstream Engineering Progress Accelerates

Renascor Resources Limited (ASX: RNU) has reported significant progress in the development of its Battery Anode Material (BAM) project during the December 2024 quarter. The company is nearing completion of the Early Contractor Involvement (ECI) phase, which focuses on the engineering design of the mineral processing plant and associated infrastructure. This phase has delivered final vendor pricing and detailed engineering designs, including process flow diagrams and plant layouts, setting the stage for the execution of an Engineering, Procurement, and Construction (EPC) contract.

Value-engineering and optimisation studies have refined equipment selections and process flows, notably enhancing graphite recovery and reducing materials handling complexity. The ECI process extension reflects Renascor’s commitment to incorporating these improvements before finalising EPC pricing and schedules.

Government Support and Strategic Site Acquisition

In a notable endorsement, the Australian Minister for Industry and Science, Hon Ed Husic MP, approved an extension of Major Project Status for Renascor’s BAM project through to November 2027. This status underscores the project’s strategic importance within Australia’s Critical Minerals and National Battery Strategies, potentially facilitating streamlined regulatory processes and access to government support.

Complementing upstream progress, Renascor secured a 1,250m² industrial warehouse site near Bolivar, South Australia, for its Purified Spherical Graphite (PSG) demonstration plant. This site is adjacent to a fully permitted commercial laboratory, positioning Renascor well for integrated downstream development. Engineering design for the demonstration plant is well advanced, incorporating successful purification equipment trials that achieved battery-grade graphite purity of up to 99.99% carbon, surpassing industry standards.

Operational Milestones and Exploration Highlights

Renascor completed its first graphite concentrate production run from the recently collected 730-tonne Siviour bulk sample. The concentrate achieved a grade of 97.1% total carbon and a graphite recovery rate of 96.0%, both exceeding targets set in the Siviour Definitive Feasibility Study. This high-quality concentrate will serve as feedstock for the PSG demonstration facility, advancing the company’s vertically integrated production model.

Exploration activities at the Tumby Bay prospect yielded a geochemical rare earth element (REE) anomaly adjacent to historical drilling sites with elevated REE intercepts. This discovery opens potential for economic REE mineralisation, with further geochemical sampling and metallurgical testing planned to define drill targets and assess processing viability.

Financial Position and Corporate Developments

Renascor maintains a robust financial position with approximately A$108 million in cash as of 31 December 2024. The company’s expenditure during the quarter primarily focused on development asset costs related to the BAM project and exploration activities. Additionally, Renascor issued performance rights to management as part of its incentive framework, reflecting confidence in the company’s growth trajectory.

Looking ahead, Renascor anticipates completing the ECI phase in the current quarter, progressing the PSG demonstration plant commissioning in the second half of 2025, and advancing regulatory approvals for its downstream manufacturing facility. These milestones will be critical in validating Renascor’s integrated approach to supplying high-quality battery anode materials to the growing lithium-ion battery market.