EcoGraf has replaced its earlier Epanko announcement after ASX correspondence, setting out the assumptions behind a potential increase in Stage 1 production to 87,600 tonnes per annum. The higher-throughput case lowers estimated unit costs, but remains preliminary and is not yet the basis for project financing or a final investment decision.
- Potential Stage 1 production increase to 87,600tpa during the Oxide phase
- First-10-year C1 costs estimated at US$512.3/t, down 5.8%
- Initial capital rises by US$12 million to US$193.2 million
- The existing 73,000tpa case remains the development and debt-financing basis
- No updated NPV or IRR has been disclosed for the expansion case
ASX prompts fuller Epanko disclosure
EcoGraf Limited (ASX:EGR) has replaced its 24 September announcement on the Epanko graphite project after correspondence with ASX, providing the material assumptions behind its proposed production increase. The revised document supports a potential 20% lift in Stage 1 nameplate output to 87,600 tonnes per annum during the Oxide processing phase, which is expected to cover at least the first 12 years of operations.
The clarification matters because the higher-output scenario is not a new Ore Reserve or a completed feasibility study. EcoGraf says the Value Engineering Review is a first-phase optimisation study, has a lower level of accuracy and confidence than the February 2026 Updated Bankable Feasibility Study, and has not been independently verified.
More tonnes, lower estimated unit costs
The operating case is attractive on its face. First-10-year C1 operating costs are estimated at US$512.3 per tonne of concentrate, compared with US$544.0/t in the 73,000tpa Updated BFS case. All-in sustaining costs are estimated at US$610.8/t for the first 10 years, down from US$639.0/t.
Those reductions are attributed principally to fixed and semi-fixed costs being spread over greater production. The value-engineering case retains the Updated BFS basket price assumption of US$1,746/t in real 2025 dollars, while assuming the additional production can be sold into the same markets. Crucially, EcoGraf says no binding offtake agreements have yet been entered into for the incremental tonnes.
Expansion requires modest plant changes, on paper
Initial capital rises from US$181.2 million to US$193.2 million, with the additional US$12.0 million split between US$5.5 million for processing plant changes and US$6.5 million for the tailings storage facility. EcoGraf says the increase sits within the Updated BFS contingency allowance of US$22 million.
The proposed upgrades include selective additions to flotation capacity, classification and screening changes, and possible optimisation of filtration and drying. About 44% of major equipment items would require modification, although the company characterises most of the work as modular and low complexity. The case also increases estimated maximum power demand from 2.8MW to 3.4MW and annual energy consumption from 20.8GWh to 25.0GWh.
Financing case remains at 73,000tpa
For now, the 73,000tpa Updated BFS remains the basis for project development and debt financing. The potential 87,600tpa case is to be refined through further engineering and BFS-level studies, with support from the European Investment Bank technical assistance program of up to €2 million. Any incremental capital is expected to be funded through the company’s existing debt, strategic equity and institutional equity processes, subject to the eventual financing arrangements and Final Investment Decision.
EcoGraf has not provided an updated net present value or internal rate of return for the higher-capacity scenario. That omission leaves the central economic question unresolved: lower unit costs and more early production may improve project value, but the filing does not quantify the effect.
Ore reserves support a shorter mine plan
The expansion case uses the existing 16.7 million tonne Ore Reserve at an average grade of 8.2% total graphitic carbon, comprising 7.1Mt of Proved and 9.6Mt of Probable reserves. It does not rely on Inferred Resources or an exploration target. Processing the same total ore faster reduces the planned mine life to 20 years from 22 years, and the schedule assumes an extension of Epanko’s initial 18-year Special Mining Licence term.
The technical case preserves the forecast product mix, with about 63.3% of lifetime concentrate production in flake sizes above 100 mesh and average product carbon grades ranging from 95.5% to 97.5% across the four size fractions. Whether that product profile converts into sufficient contracted demand, financing support and ultimately a construction decision remains to be demonstrated.
Bottom Line?
The 87,600tpa case improves the operating arithmetic, but its investment significance will depend on the next engineering study, updated project economics, funding progress and binding sales for the extra graphite.
Questions in the middle?
- Will the second phase of engineering produce a quantified NPV and IRR that justify adopting the higher-throughput case?
- Can EcoGraf secure binding offtake for the incremental 14,600tpa before committing to the expansion?
- Will debt and equity providers support the revised capital requirement while the 73,000tpa case remains the formal financing basis?