Uley 2 Project Eyes $990M Cash Flow with Integrated Refining Strategy
Quantum Graphite Limited has made significant strides in developing its Eyre Peninsula Graphite Hub, refining its Uley 2 Project financing structure, and updating its geological exploration model, signaling progress toward integrated downstream operations.
- Shortlisted sites identified for Eyre Peninsula Graphite Hub with local council support
- Uley 2 Project financing under review to integrate processing and refining activities
- Revised geological model suggests larger exploration targets at Uley
- Joint venture shifts R&D focus from purification to thermal energy storage media
- Company holds $772k cash and a $6.3 million loan facility, plans equity raising
Eyre Peninsula Hub Development Progress
Quantum Graphite Limited (QGL) has advanced the planning of its Sunlands Eyre Peninsula Graphite Hub, a regional logistics and manufacturing centre designed to support flake graphite producers and downstream industries. The company, with assistance from the Port Lincoln City Council, has shortlisted potential sites that meet critical criteria including proximity to port facilities, sufficient area for concentrate storage and manufacturing, and access to scalable power and water infrastructure. Site inspections are scheduled for the coming month, aiming to narrow down viable options for detailed due diligence.
Refining Uley 2 Project Financing Structure
In parallel, QGL is progressing financing discussions for its Uley 2 Project, the next phase of development at one of the world’s largest high-grade natural flake graphite deposits. The company is considering changes to its legal and economic structure to consolidate all downstream activities; including purification and refining; within a single legal entity. This move, favored by prospective financiers, is intended to enhance operational efficiencies and strengthen the supply chain’s resilience against competitive pressures, particularly in purified flake graphite markets. The board expects to finalise these deliberations by the December quarter.
Exploration Model Update and Resource Expansion
QGL’s geological team has revised the structural model of the Uley graphite lenses, moving away from the previously accepted antiform fold interpretation to a layered stratigraphic model. This new understanding suggests significantly larger exploration targets, potentially expanding the resource base underpinning the company’s long-term supply strategy. The updated model will guide future drilling programs aimed at resource expansion within the Uley region.
Joint Venture R&D Shifts Focus
The company’s joint venture with Sunlands Energy Co. has concluded a three-year R&D program developing scalable purification processes for flake graphite, successfully demonstrating three commercial-scale methods. With purification technology now selected for the Uley 2 Project, the joint venture is pivoting its R&D efforts toward advancing thermal storage media for long-duration energy storage cells. This aligns with Sunlands Energy’s thermal energy storage technology, which supports grid-scale renewable energy integration.
Financial Position and Outlook
As of September 30, 2025, Quantum Graphite held $772,000 in cash and maintained a $6.3 million loan facility with Chimaera Capital Limited. The company reported operating and investing cash outflows during the quarter and plans to raise additional equity capital to fund ongoing operations and development activities. Management has indicated the capacity to manage cash outflows prudently while maintaining key activities, with equity raising efforts expected to be successful.
Bottom Line?
Quantum Graphite’s integrated approach to project development and financing sets the stage for a more competitive and scalable graphite supply chain, but upcoming financing decisions and exploration results will be critical to watch.
Questions in the middle?
- Which site will be ultimately selected for the Eyre Peninsula Graphite Hub and what are the key differentiators?
- How will the proposed legal restructuring impact existing joint venture arrangements and project timelines?
- What are the implications of the revised geological model on the company’s resource estimates and mine planning?
