EcoGraf reports A$3.817 million cash and 16.7Mt Epanko reserve

Epanko reserve expands as development case advances

EcoGraf Limited (ASX:EGR) has increased the contained graphite in its Epanko ore reserve by 10% to 1.376 million tonnes, giving the Tanzanian project a larger foundation as the company attempts to move from feasibility into construction. The updated reserve stands at 16.7 million tonnes grading 8.2% total graphitic carbon, comprising 7.1 million tonnes of proved reserves and 7.9 million tonnes of probable reserves.

The updated Bankable Feasibility Study continues to support initial production of 73,000 tonnes per annum for the first 15 years of a stated 22-year mine life. Expansion studies point to staged growth reaching 390,000 tonnes per annum, although that longer-term ambition remains dependent on financing, approvals, construction and the assumptions underpinning the study.

Commercial agreements build around an ex-China supply chain

EcoGraf is pitching Epanko as the upstream anchor for a vertically integrated business spanning Tanzanian mining, mechanical shaping and HFfree purification near global battery hubs. A preliminary German offtake arrangement is expected to cover 20,000 tonnes per annum from production commencement, rising to 40,000 tonnes per annum after five years, while a non-binding framework with Mitsubishi Chemical contemplates a potential arrangement of up to 10,000 tonnes per annum of unpurified or purified spherical graphite.

The company also has up to €2 million of European Investment Bank-funded technical assistance supporting technical, environmental, social, market and implementation studies. Its proposed Tanzanian mechanical shaping facility is designed to process 20,000 tonnes per annum of natural flake graphite, with an estimated capital cost of US$58.6 million and operating cost of about US$419 per tonne. Those figures describe development studies, not an operating asset.

HFfree economics remain promising but uncommercialised

EcoGraf’s downstream proposition rests on its proprietary HFfree purification process, which the company says can produce 99.95% carbon graphite without hydrofluoric acid. For a proposed 25,000-tonne-per-annum facility, the company reports estimated capital investment of US$95 million, pre-tax NPV10 of US$282 million, annual EBITDA of US$42 million and an operating cost of approximately US$478 per tonne.

Those economics are forecasts attached to a planned facility rather than evidence of commercial production. The company is still assessing locations across Europe, Asia and the United States and remains in discussions over strategic partnerships, offtake and funding. The same distinction applies to the Mitsubishi Chemical arrangement, which remains non-binding and subject to technical evaluation.

Cash position exposes the financing gap

The financial statements make the immediate constraint hard to miss. EcoGraf reported a loss attributable to company owners of A$2.188 million for the year, down from A$5.011 million, but cash and cash equivalents fell from A$11.202 million to A$3.817 million. Operating and investing activities consumed a combined A$7.901 million, while the company had no debt at year-end.

RSM Australia issued an unmodified audit opinion but highlighted a material uncertainty related to going concern. Directors say the business can continue by combining the underwritten A$2 million share purchase plan, further equity, strategic investment, grants and a proposed senior secured loan of up to US$105 million arranged through KfW IPEX-Bank. That debt package remains subject to due diligence, credit approval, definitive documentation and other conditions, while the company explicitly acknowledges that funding may not arrive on acceptable terms, within expected timeframes or at all.

Gold provides optionality without changing the core test

EcoGraf is also retaining exposure to Tanzanian gold exploration. AngloGold Ashanti’s US$9 million farm-in at Golden Eagle has moved through a 2,659-sample soil geochemistry program, while the separate Hazina prospect produced rock-chip assays of up to 4.45 grams per tonne gold and stream sediment results of up to 8,820 parts per billion. Results from the Golden Eagle sampling remain pending, and the company says its core focus remains Epanko and the battery materials strategy.

For shareholders, the next decisive evidence will not be another resource headline. It will be whether the SPP and strategic equity process provide enough bridge capital, and whether KfW’s proposed debt facility progresses from lender workstreams to binding finance. Until then, Epanko’s larger reserve and ambitious downstream model sit alongside a balance sheet that leaves little room for delay.