9 December 2025, International Graphite Limited (ASX: IG6) (FWB: H99) announces outstanding financial projections for the Company’s planned expandable graphite facility (EGF) 50/50 joint venture in Germany based on a techno-economic evaluation (TEE).
Highlights of the TEE
Item | Unit | Total[i] | IG6 50% Interest |
Annual production of micronised graphite | Tonnes/y | 4,200 | 2,100 |
Capital cost estimate (including contingency) | A$M | 11.2 | 5.6 |
Annual net average operating cashflow | A$M | 7.6 | 3.8 |
NPV10 (Pre-tax) modelled over 25 years | A$M | 57.9 | 29.0 |
IRR (Pre-tax) modelled over 25 years | % | 66 | 66 |
Managing Director and CEO Andrew Worland said securing a foothold in Europe was a key step in the plan to establish a globally significant graphite processing and speciality materials business.
“The TEE verifies our approach that strong financial returns are capable of being generated from low capital cost graphite processing facilities with far lower execution risk and dilution to shareholders as a pre-curser to building new mine supply from our Springdale Graphite Project in Western Australia.
“For a capital cost estimate of ~$11.2 million (~€6.3 million) payback at full production would be less than two years.
“The Company planned to arrange construction financing in the first half of 2026 with production scheduled to commence in mid-2027,” he said.
The current processing facility design could produce ~4,200t/y of expandable graphite with expansion capacity through additional lines of operations and purification that would allow the sale of high value 99%+ expandable products.
The EGF is expected to be built in joint venture with Arctic Graphite AS whose major shareholder is Norwegian construction firm Nilsen Leonhard & Sønner (LNS)[ii]. LNS has extensive experience in graphite mining and has recently entered into an agreement to acquire Europe’s only operating mine, the Skaland Graphite Project in Norway.
Outlook for 2027
The EGF and the Collie Micronising Facility - currently in the construction phase - would have the capacity to be generating up to ~12,000 tonnes of micronised and expandable graphite products from 2027, and $10-$20 million of net operating cashflow (on an annualised basis) for a capital cost investment of less than $20 million.
Item | Units | Micronising Facility, Western Australia[iii] | EGF, Europe[iv] | Total IG6 Interest | |
|
| Facility under construction | Expansion Option | Techno-Economic Evaluation |
|
Annual production of graphite products[v] | Kt/y | 4.0 | 7.5 | 2.1 | 6.1 – 9.6 |
Capital cost estimate (including contingency) | A$M | 6.3 | 8.0 | 5.6 | 11.9 – 13.6 |
Annual net average operating cashflow | A$M | 4.7 | 11.5 | 3.8 | 8.5 – 15.3 |
NPV10 (Pre-tax) modelled over 25 years | A$M | 28.4 | 81.5 | 29.0 | 57.4 – 110.5 |
IRR (Pre-tax) modelled over 25 years | % | 43 | 74 | 66 | - |
EGF Development and Operating Philosophy
The TEE is an analysis of the forecast performance of the expandable graphite production chemical process and combines technical, economic and risk assessments. Capital and operating cost estimates have been prepared to a level of accuracy of +/- 35% and +/- 30% respectively.
Engineering and design of the new facility will be shaped by:
- Testwork currently progressing on feedstocks sourced from East Africa, Madagascar, the Skaland mine and concentrates generated from the Company’s 100% owned Springdale Graphite Project.
- Access to proven processing technology for which the Company has already secured IP rights.[vi]
- Finished product specification from independent graphite market specialists.
The Company currently has a non-binding graphite concentrate supply agreement in place with an international commodity trading house that has secured third party concentrate feed, sourced from various existing operations, for testwork.
The EGF process plant design is based on:
- Nominal production capacity of 3,500t/y to 4,500t/y
- Nominal 85% operating availability
- Conventional chemical intercalation process.
- Access to infrastructure within the Bitterfeld-Wolfen Chemi-Park industrial estate in Germany.
Expandable graphite is created when natural flake graphite is treated with intercalating agents, usually acids inserted between the graphite layers. When heated, these intercalated compounds rapidly vaporise forcing the graphite layers apart and expanding the material by up to 300 times its original volume. The transformation occurs in seconds and creates a lightweight, insulating carbon structure.
The EGF is expected to be capable of achieving its design parameters within the first three months of commissioning. The ultimate production profile in the first year of operations will be dependent on prevailing market conditions at the time, customer acceptance testing and product performance.
Financial performance of the EGF will be heavily impacted by expandable graphite product pricing. Pricing applied to the EGF techno-economic evaluation reflect graphite concentrate feedstock of 94-95% grades which purifies to 97-98% through the expandable process flowsheet. Higher grade feedstock would allow access to higher value markets. Pricing for expandable graphite products have grown steadily since at least mid-2022.
EGF Sensitivity Analysis
Forecast financial performance of the EGF is most impacted by changes to the sales prices for expandable graphite products.
NPV Sensitivity (€’M)
IRR Sensitivity
This announcement has been authorised for release by the Board of International Graphite Limited.
Andrew Worland
Managing Director and Chief Executive Officer
M | +61 409 370 792
For more information please contact:
Robert Hodby
CFO/Company Secretary
Marie Howarth
Media and Communication
Brent Coxan
Pamplona Group
Developing a leading position in the western graphite supply chain
Forward‐Looking Statements
Certain statements in this announcement relate to the future, including forward-looking statements relating to the Company and its business. Forward‐looking statements include, but are not limited to, statements concerning International Graphite Limited planned exploration program(s) and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may”, "potential," "should," and similar expressions are forward looking statements.
These forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement and deviations are both normal and to be expected. Neither the Company, its officers nor any other person gives any representation, assurance or guarantee that the events or other matters expressed or implied in any forward-looking statements will actually occur. You are cautioned not to place undue reliance on those statements.
[i] International Graphite would have a 50% interest in the EGF. Refer ASX release dated 28 July 2025.
[ii] Refer ASX release dated 28 July 2025.
[iii] Refer ASX release dated 25 March 2025
[iv] International Graphite’s 50% interest in the EGF
[v] Rounded to nearest 100 tonnes of production
[vi] ASX Announcement 16 October 2025