McIntosh Graphite Project Shows A$340M Pre-Tax NPV and 32.5-Year Mine Life

McIntosh Graphite Project – A Promising Outlook

Green Critical Minerals (GCM) has released a Pre-Feasibility Study (PFS) for the McIntosh Graphite Project, held under an earn-in agreement with NH3 Clean Energy Limited. The study paints a compelling picture of the project’s economic viability, with a pre-tax net present value (NPV8) of A$340 million and a post-tax NPV8 of A$235 million. The internal rate of return (IRR) stands at a robust 29.6% pre-tax and 25.3% post-tax, underscoring the project's strong financial fundamentals.

The McIntosh project boasts a substantial Mineral Resource Estimate exceeding 30 million tonnes, positioning it as the fourth largest graphite resource in Australia. With a projected mine life of 32.5 years, the operation promises longevity and the potential for further resource expansion through ongoing exploration and metallurgical testing.

Strategic Partnership and Legal Context

NH3 Clean Energy retains the mineral rights to McIntosh, with GCM having the option to earn up to an 80% stake by meeting certain milestones. This partnership allows NH3 to focus on its core clean energy initiatives while unlocking value from its mineral assets. However, the exact proportion of graphite rights earned by GCM is currently subject to court proceedings, introducing an element of legal uncertainty that investors should monitor closely.

Progress on NH3’s Flagship WAH2 Ammonia Project

Alongside the graphite update, NH3 provided a detailed status report on its WAH2 clean ammonia project, which aims to supply decarbonised hydrogen and ammonia to key Asian markets including Japan and South Korea. The project has completed all pre-FEED technical work, with FEED entry anticipated by mid-2025. This phase depends on securing commercial agreements with off-takers and strategic partners, with a final investment decision expected by late 2026. Production is targeted to commence in the second half of 2029, aligning NH3 with the growing demand for low-emission energy carriers in the Asia-Pacific region.

Looking Ahead

NH3’s dual focus on critical minerals and clean energy projects reflects a strategic approach to capitalising on the energy transition. The McIntosh graphite project’s strong economic indicators and long mine life complement the WAH2 project’s ambition to become a major supplier of green ammonia. However, the unfolding legal proceedings over mineral rights and the timing of commercial agreements for WAH2 will be critical factors shaping NH3’s near-term trajectory.