EcoGraf Limited reports strong progress on its Epanko Graphite Project with an updated BFS showing a US$516 million NPV and 31.1% IRR, alongside strategic partnerships and advanced financing efforts.
- Updated Epanko BFS delivers US$516M NPV and 31.1% IRR
- KfW IPEX-Bank leads advanced US$105M debt financing
- Strategic MOUs with Mitsubishi Chemical and Long Time Technology
- Cooperation agreement signed with European Investment Bank
- US$9M AngloGold Ashanti farm-in commenced on gold portfolio
Robust Financials Boost Epanko Graphite Project
EcoGraf Limited (ASX:EGR) has unveiled an updated Bankable Feasibility Study (BFS) for its Epanko Graphite Mine in Tanzania, delivering a pre-tax net present value (NPV10%) of US$516 million and an internal rate of return (IRR) of 31.1%. The BFS also confirms a 21.7% increase in plant throughput to 73,000 tonnes per annum, underpinning an annual EBITDA of US$85.7 million based on a long-term basket price of US$1,746 per tonne. Capital expenditure is estimated at US$181.2 million for construction and establishment, with an additional US$18.1 million allocated for the Resettlement Action Plan (RAP), including contingencies.
The BFS update represents a significant milestone, aligning the project with international project financing standards and the Global Industry Standard on Tailings Management (GISTM). An Independent Engineers Review (IER) confirmed the technical robustness of the project, positioning it well for debt financing.
Debt Financing Advances Under KfW IPEX-Bank Leadership
EcoGraf is progressing a structured financing strategy led by KfW IPEX-Bank, mandated to arrange up to US$105 million in senior debt under the German Government’s Untied Loan Guarantee (UFK) program. This facility supports critical mineral supply projects for German industry and is a key pillar in EcoGraf’s capital stack. The project has received a non-binding indication of eligibility for import credit cover under the UFK, a crucial step toward securing binding offers.
Ongoing due diligence and the submission of the IER have advanced the debt financing process, with EcoGraf preparing to appoint an Independent Expert for Euler Hermes, the credit insurer under the UFK scheme. Parallel to debt efforts, the company is engaging with equity partners, offtakers, and institutional investors to finalise a balanced funding mix.
Strategic Partnerships Expand Downstream Battery Anode Capabilities
Downstream, EcoGraf has formalised a non-binding Memorandum of Understanding (MOU) with Mitsubishi Chemical Corporation to potentially supply up to 10,000 tonnes per annum of spherical graphite, or approximately 16,500 tonnes of natural flake graphite annually, for battery anode materials. This partnership supports EcoGraf’s vertically integrated strategy, linking the Epanko Project with planned mechanical shaping and HFfree® purification facilities. The MOU follows extensive technical assessments and sample testing, indicating strong commercial interest from a tier-one global supplier non-binding MOU with Mitsubishi Chemical.
Further downstream expansion is underway through a collaboration with Taiwan’s Long Time Technology Co. Ltd (LTT), backed by Foxconn, to develop HFfree® purification facilities in South-East Asia and Taiwan. This non-binding MOU aims to integrate EcoGraf’s purification technology into LTT’s anode materials supply chain, potentially unlocking access to Tier-1 OEM and battery manufacturers. The partnership contemplates joint venture structures and investment opportunities to accelerate market entry EcoGraf and Taiwan’s Long Time Technology.
European Investment Bank Cooperation and Community Development Initiatives
EcoGraf has also signed a cooperation agreement with the European Investment Bank (EIB), securing technical assistance to support the development of its vertically integrated HFfree® battery anode materials business. This collaboration focuses on advancing the Epanko Project expansion and the Mechanical Shaping Facility in Tanzania, aligning with the EU’s Critical Raw Materials Act and reinforcing EcoGraf’s role in sustainable supply chains Cooperation Agreement with European Investment Bank.
On the social front, EcoGraf is advancing an application for co-funding with DEG Impulse, a subsidiary of the German development finance institution DEG, to support community development initiatives linked to the Epanko Project. These initiatives include potable water systems, education infrastructure, health centres, vocational training, and environmental restoration, reflecting a comprehensive approach to sustainable mining and community engagement.
Gold Exploration Gains Momentum with AngloGold Ashanti Farm-In
Beyond graphite, EcoGraf’s gold exploration portfolio in Tanzania is gaining traction. The company has commenced a US$9 million farm-in agreement with AngloGold Ashanti at the Golden Eagle Project, targeting high-grade gold mineralisation. Recent exploration at the Southern Frontier’s Hazina prospect revealed a ~3 km target corridor with rock chip assays up to 4.45 g/t Au and stream sediment anomalies reaching 8,820 ppb Au, indicating significant potential for a Proterozoic gold system AngloGold Ashanti farm-in agreement.
Cash Position and Market Dynamics
EcoGraf ended the quarter with $6.2 million in cash and cash equivalents, maintaining sufficient liquidity to support ongoing exploration and development activities. While graphite prices remain subdued due to excess inventory and supply chain disruptions, geopolitical factors such as China’s export restrictions on dual-use materials are reshaping global supply dynamics. This environment underscores the strategic importance of EcoGraf’s vertically integrated model and HFfree® purification technology, which positions the company to meet growing demand for sustainable, ex-China battery materials.
Bottom Line?
EcoGraf’s advanced BFS and strategic partnerships set the stage for financing milestones and downstream expansion, but final binding agreements and grant approvals remain critical upcoming hurdles.
Questions in the middle?
- Will EcoGraf secure binding debt financing under the KfW-led UFK program and when?
- How soon can Mitsubishi Chemical and Long Time Technology convert MOUs into commercial contracts?
- What impact will geopolitical supply chain shifts have on EcoGraf’s market positioning and pricing?