A$2.70 million loss puts Evion’s critical minerals expansion under scrutiny

Maniry clears a major regulatory hurdle

Evion Group NL (ASX:EVG) has reached a more consequential stage in its graphite strategy: the Maniry Graphite Project in Madagascar has moved from exploration into development following the grant of mining permits after the 30 June 2026 reporting date. The permits cover the key project areas supporting the company’s 2022 Definitive Feasibility Study, which outlined Stage 1 production of about 39,000 tonnes per annum and a potential increase to roughly 56,000 tonnes per annum from Year 4.

The milestone does not yet amount to a construction decision. Evion still needs environmental approval, project finance, further offtake progress and a Final Investment Decision before construction can begin. The permit process also brings a mandatory contribution to Madagascar’s FMISC community development fund, equivalent to 3% of the project’s initial capital expenditure, according to the report.

Offtake arrives before financing is complete

After year-end, Evion signed a binding terms sheet with a German graphite purchaser for a minimum of approximately 10,000 tonnes per annum of natural flake graphite concentrate over an initial five-year term. That represents roughly 50,000 tonnes of contracted product over the term once production begins, although the arrangement relates to a project that has not reached a Final Investment Decision.

Evion raised about A$2.9 million during the first half and secured commitments for a further A$7.24 million two-tranche placement during the second half. Yet the funding picture is not entirely tidy: participants linked to A$730,000 of issued placement securities failed to pay their subscriptions. The shares and attaching options are locked, and Evion intends to seek shareholder approval to cancel the unpaid shares.

Loss narrows but the auditor flags funding risk

The group reported an A$2.70 million loss for FY2026, narrower than the A$3.69 million loss recorded in FY2025. Operating cash outflow was A$2.22 million, while cash and cash equivalents stood at A$4.71 million at 30 June. Evion reported a working capital surplus of A$3.71 million, but the accounts state that continuing operations depend principally on raising further equity and managing cash flow within available funds.

That assessment led the auditor to highlight a material uncertainty related to going concern. The auditor’s opinion was not modified, but the warning matters because the company is pursuing several capital-intensive fronts at once, including Maniry development, CARP exploration and expansion of its Indian downstream business.

Panthera supplies an operating foothold

The 50:50 Panthera Graphite Technologies joint venture in India completed its first full year of commercial production. For the year ended 31 March 2026, the venture reported unaudited revenue of US$1.72 million, sales of 720 tonnes and unaudited EBITDA of US$530,000 while operating at only about 20-25% of nameplate capacity. Its gross profit margin was 54.5%, with realised pricing of approximately US$3,100 to US$3,400 per tonne. The figures echo the company’s previously disclosed downstream graphite performance, but remain unaudited and relate to the joint venture rather than the consolidated group.

Evion’s stated expansion pathway targets 2,500 tonnes per annum at Stage 1, with projected EBITDA of about US$3.4 million, and approximately 4,000 tonnes per annum at Stage 2, with projected EBITDA of about US$5.8 million. Those are targets rather than reported outcomes, and the joint venture still recorded a US$199,691 loss for the year in its own financial statements, of which Evion recognised a US$99,845 share.

CARP adds another development bet

Evion also secured an option over the CARP Fluorspar Project in Nevada and expanded the claim package to 59 claims covering about 493 hectares. Independent review confirmed that 14 of 25 surface samples graded between 49.83% and 88.15% calcium fluoride, while historical records show approximately 44,900 tonnes of fluorspar were produced from the area between 1958 and 1971.

The option is not a completed mine acquisition. Exercising it requires up to US$1.46 million in cash payments, US$1.75 million in share consideration and US$3.75 million of exploration expenditure over four years. Evion must therefore convert promising surface results into a resource and navigate permitting before CARP can become a producing asset.