International Graphite made a remarkable entrance to the ASX Thursday following the completion of a $10 million IPO and the acquisition of the Springdale graphite project in WA from Comet Resources. The company opened at $0.40 per share, double the IPO price as followers clamoured for a seat at the table with over 13 million shares changing hands across a $0.365c to $0.42 spread before rounding out the week at around $0.36 a share.
The company’s initial public offering saw the Perth-based graphite player issue 50 million shares at $0.20 a pop to bankroll its battery anode ambitions and its plan to get Comet’s Springdale graphite deposit in the south of WA into production.
After rattling the tin and shoring up its finances, the company says its new reserves will allow it to develop a new source of battery graphite for the global electric vehicle industry and renewable energy markets that have been on a tear in recent times.
Tesla’s Australian arm recently stunned the local auto industry with its first set of official Federal Government figures, indicating the automaker’s Model 3 electric vehicle had outsold a number of popular models from established manufacturers including Honda, Lexus, Jaguar and Land Rover.
International Graphite, unlike many other operators in the space, has its eyes on complete control of its graphite value chain and will use the concentrate from its newly attained Springdale deposit to produce battery anode materials at its processing centre in Collie, WA.
Springdale already has more than 15 million tonnes of inferred resources with a total graphite content, or TGC, of 6 per cent.
Remarkably, the project contains a higher grade inferred resource of 2.6 million tonnes at 17.5 per cent TGC.
International Graphite is looking to get a feasibility study underway for the Springdale deposit, which could see the company launch an open pit mining operation at the site in the next year or two.
At the Collie downstream processing facility, the company will look to refine its Springdale graphite to produce micronised graphite, an ultrafine material used in the production of lithium-ion batteries. The ultimate goal however is to produce anode material for lithium-ion batteries.
As calls for decarbonisation continue to revolutionise the transport and energy sectors, global supply for all things associated with the electric vehicle industry are facing unprecedented demand challenges.
In the midst of this clamour for change, fully integrated operations such as International Graphites will make for a solid set of efficiencies and synergies – and after doubling its share price on day one, punters seem to agree.
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