Quantum Graphite Reports $4.9M Loss, Eyes US$300M Funding for Uley 2 Expansion

Financial Performance and Operational Context

Quantum Graphite Ltd has released its audited preliminary final report for the year ended 30 June 2025, revealing a net loss of $4.91 million, a modest increase from the prior year’s $4.37 million loss. Despite the loss, total revenue and other income soared by 315% to $1.82 million, buoyed by research and development tax incentives and a one-off litigation settlement. This financial outcome aligns with the company’s strategic plan as it invests heavily in advancing its flagship Uley 2 graphite mining and processing project in South Australia.

Strategic Progress on Uley 2 and Joint Ventures

The Uley 2 project, encompassing expanded mining and processing operations at the Uley regional deposits, is central to Quantum’s growth ambitions. The company has partnered with The Sunlands Energy Company Pty Ltd in a joint venture, Sunlands Power Pty Ltd, to manufacture natural flake graphite products aimed at the energy storage market. This downstream focus is supported by ongoing research and development efforts leveraging SEC’s core technologies, broadening commercial opportunities beyond traditional graphite powders.

Infrastructure and Funding Milestones

In a significant development, the Commonwealth Department of Industry, Science and Resources awarded Major Project Status to the Sunlands Eyre Peninsula Graphite Hub (EPG Hub) in February 2025. Quantum’s Uley 2 project is positioned as the initial beneficiary of this integrated infrastructure facility, which will provide logistics, processing, refining, manufacturing, and marketing support for graphite producers in the region. This status enhances the project’s appeal to global battery minerals investors and underpins several major financiers’ ongoing due diligence.

Quantum has lodged a formal funding application for US$300 million with the US Export-Import Bank (US EXIM Bank) to support Project Utile, an end-to-end Australia-US flake graphite supply chain initiative. This includes production at Uley 2, inventory management, warehousing, and a proposed refining facility in South Carolina, USA. The company’s working capital facility with Chimaera Capital Limited was increased to a maximum of $6 million, providing additional financial flexibility as it navigates these funding processes.

Governance, Capital Structure, and Outlook

The company maintains all mining titles in good standing and continues exploration activities, including the recently granted exploration licence EL7019. Directors received shares in lieu of fees, reflecting a commitment to align interests with shareholders. Share-based payments increased due to the issuance of new incentive options. The financial statements were audited by RSM Australia Partners with no material misstatements, and the directors affirm the company’s status as a going concern, supported by plans for further capital raising if necessary.

Quantum’s technical achievements, combined with the commercial advantages of the EPG Hub and the strategic funding pursuits, position the company to capitalize on rising demand for high-purity flake graphite products, particularly in the energy storage sector. However, the outcome of funding applications and the ability to scale production remain key factors to watch.