PERTH (miningweekly.com) – An independent review of the Epanko graphite project’s economics has resulted in a 55% increase in the project’s net present value (NPV), owner Kibaran Resources reported on Wednesday.
An August scoping study estimated that the Epanko project, in Tanzania, could have a NPV of A$213-million, based on production of 40 000 t/y of high-grade graphite flake concentrate.
Kibaran said this week that an independent preliminary analysis of the project had revealed that Epanko could have a NPV of A$515-million, based on recently received indicative debt funding.
At the end of March, Kibaran received expressions of interest from a development finance institution wishing to provide a senior loan worth A$28-million, and to act as arranger for the balance of the project debt.
Meanwhile, Kibaran on Wednesday noted that the bankable feasibility study on the Epanko project remained on track for completion by the end of June.
While the developer has previously flagged that Epanko could deliver as much as 100 000 t/y of graphite product, the company noted that a 40 000 t/y production rate was prudent at this stage.
“The economic viability of the project at this level of production is clear and even more attractive on a scaled-up growth strategy should the company need to respond quickly to future increases in demand,” Kibaran said.