EcoGraf’s Epanko BFS Unveils $516M NPV and 73,000tpa Production Boost

Robust Financials and Production Scale

EcoGraf Limited (ASX: EGR) has announced the completion of an updated Bankable Feasibility Study (BFS) for its Epanko Graphite Project in Tanzania, delivering a compelling financial and operational outlook. The BFS supports a production rate of 73,000 tonnes per annum (tpa) of graphite concentrate over the first 15 years, a 21.7% increase from previous plans, underpinned by an updated Ore Reserve of 16.7 million tonnes at 8.2% total graphite carbon (TGC).

Financial metrics are strong, with a pre-tax net present value (NPV) at a 10% discount rate of US$516 million and an internal rate of return (IRR) of 31.1%. Capital expenditure for construction and establishment is estimated at US$181.2 million (real 2025), alongside US$18.1 million allocated for the Resettlement Action Plan (RAP). Annual EBITDA is forecast at US$85.7 million, based on a life-of-mine basket price of US$1,746 per tonne.

Technical and Environmental Validation

The BFS incorporates extensive technical advancements, including compliance with the Global Industry Standard on Tailings Management (GISTM) and international project financing standards, as confirmed by an Independent Engineers Review (IER). The project benefits from high-quality graphite concentrate with superior flake size distribution and carbon purity, positioning Epanko as a low-cost, tier-1 supplier to the growing ex-China graphite market.

Environmental and social management plans have been rigorously updated to align with Tanzanian legislation, IFC Performance Standards, and World Bank guidelines. The project’s social license is supported by a comprehensive Resettlement Action Plan and commitments to local employment, with over 95% of operational roles expected to be filled by Tanzanian nationals.

Financing and Offtake Agreements

EcoGraf is advancing a structured project financing strategy, with KfW IPEX-Bank leading the debt financing program targeting up to US$105 million in senior debt under the German Government’s Untied Loan Guarantee program. Parallel equity funding discussions involve existing and prospective offtake partners, industry participants, government agencies, and institutional investors focused on critical minerals and energy transition.

Binding offtake and in-principle sales agreements cover 40,000 tpa of production, including partnerships with ThyssenKrupp Metallurgical Products GmbH and POSCO. An additional 20,000 tpa offtake is expected to convert into binding agreements upon production commencement, supporting future expansion plans.

Expansion Potential and Market Outlook

The BFS outlines potential for staged expansions to increase production to 390,000 tpa within 10 years, driven by surging global demand for graphite in lithium-ion batteries and electric vehicles. The project’s proximity to grid power, established transport corridors, and the Dar es Salaam port, enhanced by recent infrastructure investments, further support scalability and market access.

EcoGraf’s vertically integrated business model includes downstream HFfree® purification facilities planned across North America, Europe, and Asia, aimed at meeting stringent battery-grade material requirements and sustainability goals.

Strategic Positioning Amid Supply Constraints

With global graphite demand forecast to outpace supply from 2026, exacerbated by geopolitical tensions and Chinese export restrictions, Epanko is strategically positioned to capture market share. The project’s high-quality product, competitive cost structure, and strong ESG credentials align with the priorities of battery manufacturers and industrial users seeking secure, sustainable supply chains.