Name of the Project
Molo graphite project.

Location
The project is located in southern Madagascar.

Project Owner/s
NextSource Materials.

Project Description
The project has proven and probable reserves of 22.44-million tonnes grading 7% carbon. Total measured and indicated minerals resources are estimated at 100.37-million tonnes grading 7.7% carbon.

An updated feasibility study has outlined a phased development approach for the project.

The first phase of production will comprise a fully operational and sustainable graphite mine, with a permanent processing plant capable of processing 240 000 t/y of ore and producing about 17 000 t/y of high-quality SuperFlake graphite concentrate.

After the first two years of operation, Phase 2 incorporates the ramping up to 720 000 t/y of processed ore in the third year to accommodate additional sales, resulting in 45 000 t/y of SuperFlake concentrate being produced for a mine life of 30 years.

Potential Job Creation
An estimated 180 jobs are expected to be created.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $237.1-million and an internal rate of return of 43.1%, with a payback of 3.4 years.

Capital Expenditure
Capital expenditure (capex) for Phase 1 will be $21-million, with Phase 2 capital expenditure being an additional $39.1-million, for a total project cost of $60.1-million.

Planned Start/End Date
Once capital expenditure is secured, construction will take only nine months.

Latest Developments
The recently updated feasibility study positions Molo as a very high-quality and economic project with one of the lowest capex costs in the industry.

One-hundred per cent of Phase 1 production has been secured through a ten-year binding offtake agreement with the primary graphite supplier to a major Japanese electric anode producer.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
NextSource Materials, tel +1 416364 4911 or email info@nextsourcematerials.com.