A newly revised feasibility study for EcoGraf Ltd’s Epanko graphite project in Tanzania indicates the venture’s financial prospects have improved substantially since the last assessment in 2017. The update arrives as market forecasts point to a potential graphite supply deficit emerging from 2026, driven largely by expanding lithium-ion battery production for electric vehicles and energy storage systems.
Revised Project Economics Show Strong Returns
The updated Bankable Feasibility Study presents significantly improved metrics. It calculates a pre-tax net present value (NPV) of $516 million and an internal rate of return (IRR) of 31.1%. A key driver is an increased planned production output: EcoGraf now targets an annual capacity of 73,000 tonnes for the first 15 years of operation, representing a 21.7% increase over previous plans.
On the cost side, the study estimates capital expenditure for construction at $181.2 million. An additional $18.1 million is allocated for a Resettlement Action Plan. The project’s ore reserve is stated at 16.7 million tonnes, grading 8.2% Total Graphitic Carbon (TGC), supporting a projected mine life of 22 years. The financial model uses a basket price assumption of $1,746 per tonne over the mine’s lifespan and forecasts an annual EBITDA of $85.7 million.
Strategic Positioning in a Shifting Market
The company emphasizes the strategic timing of the project’s development. By targeting production in the coming years, Epanko could position itself as a supplier to European and Asian markets just as analysts predict demand may outstrip supply. This potential establishes the project as a future source outside of China-dominated supply chains.
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EcoGraf also highlights its proprietary HFfree® purification technology, which it markets as an environmentally friendly processing method. Furthermore, the company states that its technical, environmental, and social planning aligns with international financing standards, including those of the IFC and the World Bank Group. An independent engineering review has reportedly confirmed that the technical work packages meet these requirements.
Financing and Future Expansion Plans
Securing project financing remains the critical next step. EcoGraf reports that debt financing discussions are already well advanced, led by KfW IPEX-Bank. The company views the updated study as having “de-risked” the project in key areas, aiming to establish a low-cost, vertically integrated production operation.
Looking further ahead, EcoGraf has outlined a potential “Stage 2” expansion that could further increase capacity to meet additional demand from new global battery anode supply chains. Investor sentiment appears to be factoring in this longer-term horizon; while the share price remains notably below its 52-week high, it has recorded a gain of 264.46% over a twelve-month period.
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