International Graphite lines up Collie finance and feedstock as construction advances

Collie Construction Reaches 30% Completion

International Graphite Limited (ASX:IG6) has reached a useful execution milestone at Collie, where the production building for its Micronising Facility is approximately 30% complete. Construction began with civil earthworks in June, and completion remains targeted for the second quarter of 2027.

The update gives shareholders a clearer view of how the project is being funded. IG6 secured approximately A$1.5 million in construction finance from National Australia Bank during September, comprising a secured business markets loan and overdraft. The company has since added an equipment financing letter of credit facility worth approximately A$1.0 million. The NAB business markets loan has a two-year term with interest capitalised before converting to an amortising loan over 13 years.

The financing arrives as IG6 continues to spend on the facility, although the Appendix 5B stated that no amount had been drawn from the NAB facility at quarter-end. The company also received A$335,000 under the Western Australian Government’s Collie Industrial Transition Fund during the quarter, leaving A$2.465 million available under the assistance agreement. The project had already been supported by the A$1.5 million NAB facility, which was previously reported as non-dilutive construction finance.

Wogen Agreement Removes Initial Mining Requirement

After quarter-end, IG6 signed a binding graphite concentrate supply agreement with Wogen Pacific Limited. The three-year arrangement, renewable for a further two years and then on a rolling six-month basis, is intended to provide feedstock for Collie without requiring IG6 to take on the capital expenditure and operating risks of mining before the facility begins operations.

Prices will reflect market conditions at the time of each order. That structure provides supply access, but leaves the eventual cost of feedstock exposed to market conditions. IG6 said much of the graphite used in its Collie research and qualification work had already been secured by Wogen, which has experience trading concentrates and relationships with producers globally.

Italian Joint Venture Advances Through Permitting

At Porto Marghera, IG6 and Alkeemia S.p.A. progressed permitting work for their planned Italian joint venture. Detailed permitting information was provided for submission, while the partners continued product testwork and discussions with European industrial customers. The proposed venture would be owned 51% by Alkeemia and 49% by IG6 Italy, with profits shared equally.

The project is planned to begin with approximately 10,000 tonnes a year of production capacity and expand to about 15,000 tonnes, subject to market demand. IG6 is also pursuing project finance and European critical minerals funding, with the stated intention of limiting new equity contributions. At Alkeemia’s 200-tonne-a-year purification pilot plant, installation is complete and remaining electrical work is nearing completion, with commissioning and initial operations expected by the end of the fourth quarter of 2026.

Funding Position Strengthened, But Development Demands Continue

IG6 ended September with approximately A$3.352 million in cash. Operating activities used A$574,000 during the quarter, while investing activities absorbed A$583,000, including A$478,000 for the Collie facility. The company raised A$2.303 million through the second tranche of its placement, issuing 58.8 million shares, and listed 62.5 million placement options under the ticker IG6O.

On the company’s Appendix 5B calculation, cash plus unused financing facilities totalled A$7.462 million, equivalent to an estimated 12.4 quarters of funding based on relevant outgoings. That measure is a snapshot based on current spending rather than a full estimate of construction, commissioning or Italian joint venture costs. IG6 also plans to seek shareholder approval for a name change to IG6 Advanced Materials Limited, while retaining the ASX ticker IG6, at its November annual meeting.