Site works have paved the way for the start of building construction and plant installation, and long-lead plant and equipment has been secured and will be installed over the next few months.
“Our recent site visit confirms that the Panthera project is well on track for production and cashflow in the December quarter,” Evion Group (ASX:EVG) MD Tom Revy said.
“Engineering and site works are progressing rapidly, ensuring that the project is well-placed to capitalise on the growing demand for expandable graphite.”
The JV plans to commence production of 2,000-2,500Mtpa in Stage 1 and expand output to 4,500-5,000Mtps for Stage 2.
The project is underpinned by a binding offtake agreement with Grafitbergbau Austria, which has committed to buy the initial production of up to 2,500Mtpa.
“All the project’s production is covered by a binding offtake agreement which will provide immediate cashflow,” Revy said.
The company says projected Stage 1 revenue is US$7.5 million pa, growing to over US$17 million at Stage 2.
Evion also noted that the Indian JV is set to generate strong cashflow and provide reliable market for concentrate from its Maniry graphite project in Madagascar.
“Panthera will also provide a firm, reliable market for graphite concentrate from our Maniry mine in Madagascar once that is in production, further underpinning Evion’s vertical integration strategy in the graphite industry,” Revy said.
The company recently completed the definitive feasibility study at Maniry which demonstrated compelling financial returns and found the graphite produced will be suitable for a range of value-added products, including the EV industry.
A detailed environmental and social impact study program is underway – which will underpin final mining licence approvals.
