Name of the Project
Lindi Jumbo graphite project.

Location
South-east Tanzania.

Project Owner/s
Walkabout Resources.

Project Description
The Lindi Jumbo project has mineral ore reserves of 5.15-million tonnes grading 17.9% total graphitic carbon for 987 000 t of con­tained graphite.

The mine life has increased from 20 years in the 2017 definitive feasibility study (DFS) to 24 years in the enhanced DFS to produce 40 000 t/y of graphite.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The pretax net present value has increased from $302-million, at a 10% discount rate in the 2017 DFS, to $335-million in the enhanced DFS. The project’s pretax internal rate of return is estimated at 142% in the enhanced DFS, from 108% in the 2017 DFS. The payback period is less than two years.

Capital Expenditure
Preproduction capital costs have decreased from $29.7-million in the 2017 DFS to $27.8-million in the enhanced DFS.

Planned Start/End Date
The construction schedule has not been modified in the enhanced DFS, as commissioning can be achieved 9 to 12 months after project-start funding has been received.

Latest Developments
Walkabout Resources has secured a $20-million debt facility with investment fund manager Gemcorp to complete construction of its Lindi Jumbo graphite mine.

The company has signed a term sheet with Gemcorp, which includes a $20-million senior secured debt facility and a $5-million unsecured standby facility that will ensure that the project is funded into production.

“It is pleasing to know that the . . . project will be funded through to production. Having Lindi Jumbo more than 85% complete to cost prior to the first drawdown provides a significantly different base for project debt than any of the prior arrangements,” Walkabout CEO Andrew Cunningham has said.

Debt will fund almost half of the total development cost, including working capital since 2021, which will increase the future earnings per share for shareholders relative to Lindi Jumbo being fully equity funded.

The loan facility is subject to commercial terms typical for a transaction of this nature, and will be repaid from operating cash flow, starting in June 2024.

Key Contracts, Suppliers and Consultants
TNR (bulk earthworks civil engineering works contract); Yantai Jinpeng Mining Machinery (engineering, procurement and construction, or EPC); and Axis Group International (EPC oversight).

Contact Details for Project Information
Walkabout Resources, tel +61 8 6298 7500 or email admin@wkt.com.au.