International Graphite has moved its graphite processing strategy from plans towards construction and joint ventures, but the FY2026 annual report shows the company remains loss-making and reliant on external funding. Collie is scheduled for building completion in Q2 2027, while the proposed European hub still requires financing and development work.
- $2.95 million FY2026 net loss and $2.97 million operating cash outflow
- Collie micronising facility under construction with Q2 2027 building completion targeted
- Binding Alkeemia joint venture targets initial European capacity of about 10,000 tonnes a year
- Springdale concentrate achieved up to 99.98% total graphitic carbon in purification testwork
- $4.4 million placement completed with attaching options and strategic investment from Xcelsior Capital
Construction advances as funding remains central
International Graphite Limited (ASX:IG6) has spent FY2026 building the infrastructure for a downstream graphite business, but its financial statements underline the distance still to travel. The company reported a net loss of $2.95 million, compared with $2.42 million a year earlier, and used $2.97 million in operating cash. The auditor issued an unmodified opinion, while the directors said the accounts could be prepared on a going-concern basis because of subsequent funding, grants and other financing arrangements.
The most tangible progress is at Collie, Western Australia, where earthworks and civil works had begun by 30 June 2026. The production building and installation of the first milling equipment are scheduled for completion during Q2 2027. The planned plant is designed to produce between 4,300 and 6,400 tonnes a year of standard and high-grade graphite products in particle sizes ranging from 5 to 45 micrometres, although output will be shaped by customer demand and product margins rather than maximum throughput.
That construction programme is backed by a mix of equity, government support and debt. IG6 completed a $4.4 million placement at $0.04 a share, with one free attaching option for every two shares, and Xcelsior Capital joined the register as a cornerstone investor. The company also reported $7.315 million of government grant funding still available for Collie, Springdale feasibility work and battery-anode processing, alongside a $1.41 million construction finance loan with National Australia Bank.
Alkeemia partnership targets European processing hub
In Europe, IG6 has converted its relationship with Italian hydrofluoric acid producer Alkeemia into a binding joint venture agreement. Alkeemia will hold 51% and IG6 49%, with profits to be shared equally. The proposed Porto Marghera facility has initial planned capacity of approximately 10,000 tonnes a year, potentially increasing to about 15,000 tonnes subject to market demand. IG6 is responsible for funding the initial development capital, while Alkeemia is expected to manage construction and operations under a separate agreement.
The partnership also produced the year’s clearest technical signal. Seven graphite concentrate samples, including material from IG6’s Springdale project, exceeded the stated 99.9% total graphitic carbon purification target; the Springdale sample reached 99.98%. Those results support the company’s stated ambition to supply higher-value industrial and battery-related products, but they are testwork outcomes rather than evidence of commercial-scale production.
Springdale offers feedstock but remains pre-development
Springdale remains a potential long-term feedstock source rather than an operating mine. IG6’s 100%-owned project near Hopetoun has a total mineral resource of 49.3 million tonnes at 6.5% TGC using a 2% cut-off, containing 3.2 million tonnes of graphite. At a 5% cut-off, the resource is 28.0 million tonnes at 8.7% TGC, containing 2.4 million tonnes of graphite. The project is still at feasibility stage, and the company’s scoping-study metrics remain estimates rather than operating results.
The funding picture is therefore as important as the processing story. At year end IG6 held $2.71 million in cash, but unrestricted cash was $858,577 after accounting for government grants received in advance. It also carried a working capital deficit of $2.05 million, a $600,000 loan linked to an anticipated research and development rebate, and a $462,822 financial liability that could be settled through shares. The August placement improved liquidity, but also expanded the capital structure: the company reported 315.5 million ordinary shares on issue by 25 September, alongside 80.5 million unquoted options.
Bottom Line?
IG6 now has construction, technical validation and strategic partners to show for its development spending; the next test is whether those assets can move into funded, contracted and cash-generating operations without further heavy dilution.
Questions in the middle?
- Can Collie reach building completion and commissioning on the Q2 2027 timetable while remaining within available funding?
- When will the non-binding Wogen sales and feedstock arrangement become definitive commercial agreements?
- How much additional capital will IG6 need to fund the Alkeemia hub, Springdale feasibility work and the transition to production?