Collie Micronising Facility FEED Study Confirms $25.8M NPV and 43% IRR for Graphite Processing

Geopolitical Shifts Elevate Springdale's Strategic Importance

International Graphite (ASX:IG6) has underscored the growing geopolitical significance of its Springdale Graphite Project in Western Australia amid recent US government policy moves. Executive Orders signed by President Trump in March and April 2025 aim to secure critical mineral supply chains, fast-track permitting, and provide financial incentives for domestic and allied graphite projects. Notably, graphite imports from Australia have been exempted from new US tariffs, signalling the material's critical role in defence and energy storage sectors.

These developments reinforce International Graphite's positioning as a reliable, politically stable supplier of battery-grade graphite to the US and European markets, where supply continuity is paramount given global tensions and export restrictions from traditional producers.

Collie Micronising Facility FEED Study Validates Expansion Potential

The company released results from its Front End Engineering and Design (FEED) study for the Collie Micronising Facility, confirming the project's strong financial viability. The planned 4,000 tonnes per year graphite processing plant is modelled to generate an average annual revenue of A$14.1 million with a pre-tax NPV10 of A$25.8 million and an IRR of 43%. Expansion options could more than double production capacity, enhancing economies of scale and market reach.

Progress on plant design, power infrastructure upgrades, and land acquisition is underway, reflecting management's commitment to advancing downstream processing capabilities that add value beyond raw concentrate sales.

Strategic Partnership and Purification Success

International Graphite continues to collaborate with Marubeni Corporation under a non-binding memorandum of understanding. Marubeni, a major Japanese trading and investment conglomerate, is exploring supply avenues for spheroidised graphite to support Japan's expanding battery and electric vehicle industries. Testwork coordinated by Marubeni in Japan has demonstrated purification of Springdale graphite concentrates to 99.97% total graphitic carbon, meeting stringent lithium-ion battery anode material specifications.

This technical validation is a critical milestone for International Graphite’s mine-to-market strategy, enhancing the project's attractiveness to downstream customers and financiers.

Robust Government Support Bolsters Project Funding

The company has secured a total of A$17.2 million in financial assistance agreements from the Western Australian government, with A$12.2 million remaining available for ongoing project development. These grants support feasibility studies, R&D, construction of processing facilities, and bulk concentrate generation programs. This substantial government backing reduces capital risk and underscores the strategic importance of the Springdale and Collie projects within Australia's critical minerals agenda.

Financial Position and Corporate Developments

International Graphite reported positive net cash flow from operating activities of A$583,000 for the quarter and maintains a cash balance of A$1.64 million. The company also holds a secured loan facility of A$1 million linked to its R&D tax rebate, with an interest rate of 16%. No changes to the capital structure occurred during the quarter, reflecting stable financial management amid ongoing project advancement.

Engagement with industry and community stakeholders continues, including participation in Australian and international forums, reinforcing the company's profile as a key player in the critical minerals sector.