How Evolution Energy Plans to Unlock US$338M Value at Chilalo Graphite Project
Evolution Energy Minerals advances its development-ready Chilalo Graphite Project in Tanzania, targeting a Final Investment Decision by mid-2026 while exploring promising copper prospects and strengthening its leadership team.
- Chilalo Graphite Project development-ready with robust DFS and low capex
- Post-tax NPV8 of US$338 million and IRR of 32% underpinning project value
- Exploration continues at high-grade Chikundo Cu-Pb-Zn VHMS prospect
- Farm-out agreement for Chikundo lapses, project reverts fully to Evolution
- Cash position at A$82,000 with plans for funding via convertible loans and R&D claims
Strategic Growth and Project Overview
Evolution Energy Minerals Limited (ASX, EV1) has marked a pivotal moment in its development trajectory with significant progress on its flagship Chilalo Graphite Project in Tanzania. The project is fully permitted and supported by a definitive feasibility study (DFS) completed in March 2023, which highlights a post-tax net present value (NPV8) of US$338 million and an internal rate of return (IRR) of 32%. With a low capital expenditure requirement of US$120 million pre-production, Chilalo is positioned as a long-life, high-margin graphite operation with a 17-year mine life producing 52,000 tonnes per annum of premium graphite concentrate.
The project’s resource base is substantial, boasting a JORC resource of 67.5 million tonnes at 5.4% total graphitic carbon (TGC) and a reserve of 8 million tonnes at 10.6% TGC. Notably, over 58% of production is expected to be coarse flake graphite, a high-value product used in battery anodes and expandable graphite markets. Strategic offtake agreements with global leaders BTR New Materials and Yichang Xincheng Graphite Co underpin the commercial viability of the project.
Exploration Upside and Copper Prospects
Beyond Chilalo, Evolution is actively exploring the Chikundo Cu-Pb-Zn volcanic hosted massive sulphide (VHMS) prospect, which has shown promising high-grade mineralisation. Although a previously announced farm-out agreement with Oscillate PLC has lapsed, the project returns fully to Evolution’s control, offering potential for copper exposure in a jurisdiction where the company already has established infrastructure. Historical drilling results include intercepts of up to 6.3 meters at 2.0% copper, with anomalous lead and zinc also present.
Further exploration is planned to expand both graphite and base metal resources, with geophysical surveys identifying extensive conductive anomalies around Chilalo East and Chilalo East 2. These targets could lower mining costs, extend mine life, and grow the resource base, enhancing the project’s long-term value.
Corporate and Financial Position
Evolution’s leadership team has been bolstered with the appointment of Gemma Cryan as Technical Director, bringing over two decades of global mining expertise. The board also includes experienced executives such as Paul Atherley and Craig Moulton, providing strong governance and strategic oversight.
Financially, the company reported a cash balance of A$82,000 at the end of June 2025, with a reduced quarterly cash outflow of A$29,000. While this cash position provides approximately 2.8 quarters of funding at current expenditure levels, Evolution is actively pursuing additional capital through convertible loan notes and an R&D claim. The company expresses confidence in securing the necessary funding to advance its development plans.
Looking Ahead
Evolution is targeting a Final Investment Decision (FID) for the Chilalo project by mid-2026, or earlier if funding allows. Several workstreams, including mining camp construction, site infrastructure preparation, and further resource drilling, have been accelerated ahead of the FID to maintain momentum. The company also emphasizes its commitment to best-in-class environmental, social, and governance (ESG) practices, ensuring sustainable and community-supported development.
As the company advances its graphite and copper assets, investors will be watching closely for updates on funding arrangements, exploration results, and progress towards production milestones.
Bottom Line?
With a clear path to development and strategic exploration underway, Evolution Energy Minerals is poised for a transformative phase, provided funding and exploration outcomes align.
Questions in the middle?
- Will Evolution secure the necessary funding to meet its mid-2026 Final Investment Decision timeline?
- How will the lapse of the Chikundo farm-out agreement impact the pace and scale of copper exploration?
- What are the prospects for expanding the Chilalo resource base through ongoing geophysical and drilling programs?