Mineral Commodities Reports 1,661 Tonnes Graphite Production, Extends Skaland Sale Deadline

Skaland Sale Stalls Amid Financial and Operational Hurdles

Mineral Commodities Ltd (ASX, MRC) continues to grapple with delays in the sale of its wholly owned Norwegian graphite asset, Skaland Graphite AS. Despite a binding share purchase agreement with Norge Mineraler Holding AS, the buyer remains in default, having made only partial non-refundable payments. The parties have now agreed to extend the completion deadline to 31 October 2025, accompanied by additional payments intended to support Skaland’s ongoing operations.

This protracted sale process has impacted operational decisions at Skaland, including a temporary reduction in mining activity due to cost-saving measures such as off-hiring the rental drill rig. Processing throughput also declined, affected by staff shortages and equipment downtime. Nevertheless, the site produced 1,661 tonnes of graphite concentrate during the quarter, with sales of 2,085 tonnes generating approximately US$1.1 million in revenue.

Munglinup Project, A Strategic Focus Amidst Uncertainty

Parallel to the Skaland sale saga, Mineral Commodities is advancing discussions to acquire the remaining 49% interest in the Munglinup Graphite Project, currently held in joint venture with Gold Terrace Pty Ltd. The company holds 51% and aims to consolidate full ownership, which would align with its strategic pivot towards integrated graphite assets focused on battery mineral markets.

While no formal agreement has yet been executed, Gold Terrace has agreed to suspend legal claims pending completion of a binding transaction. The acquisition remains subject to regulatory approvals, including Foreign Investment Review Board consent, and the withdrawal of caveats on tenements. The Munglinup project, with a definitive feasibility study outlining production of approximately 52,000 tonnes per annum over 14 years, remains central to Mineral Commodities’ long-term vision.

Tormin Mineral Sands Business in Limbo

In South Africa, the company’s Tormin mineral sands operation is in provisional liquidation. Mineral Commodities holds a 50% stake and is a major creditor due to intercompany loans. The provisional liquidators are seeking court approval to extend their powers to facilitate a sale to interested third parties. The outcome of this process remains uncertain but will be critical to the company’s financial and operational position.

Financial Position and Funding

As of 30 June 2025, Mineral Commodities reported available cash of US$565,000 and borrowings of US$7.6 million. The company has secured A$2.4 million in convertible loan facilities from existing shareholders, including its largest shareholder Au Mining Limited. These facilities have had their maturity dates extended, reflecting ongoing funding needs amid operational and transactional uncertainties.

Meanwhile, the company is progressing pilot-scale testing of graphite anode material at its Active Anode Plant Project, collaborating with Mitsubishi Chemical Corporation and CSIRO. This initiative underscores Mineral Commodities’ commitment to adding value downstream in the battery minerals supply chain.

Looking Ahead

Mineral Commodities is at a crossroads, balancing the complexities of completing the Skaland sale, consolidating ownership of Munglinup, and navigating the uncertain fate of Tormin. The company’s ability to resolve these issues will shape its trajectory in the competitive battery minerals sector, where integrated assets and downstream capabilities are increasingly prized.