Graphite: Walkabout Resources updates feasibility study

Australian company Walkabout Resources has incorporated its recent resource update into the existing definitive feasibility study for the Lindi Jumbo project in south-eastern Tanzania. Mine life has now been increased by 20% to 24 years and the project’s post-tax net present valuation (NPV) has been increased by 9.4% to US$197M. Pre-production capital costs have fallen slightly to US$27.8M and expected operating costs to US$347/t concentrate FOB Mtwara.

Roskill view:

Lindi Jumbo is one of six flake graphite projects currently being developed in Tanzania on which a prefeasibility or full feasibility study have been completed. Worldwide project development has been reinvigorated in recent months as a result of high flake graphite prices throughout 2018 as on-going Chinese environmental inspections and plant closures coincided with rising demand from the lithium-ion battery sector. Despite some downward readjustment later in the year, full-year 2018 prices for 94-97% C flake concentrate (CIF European port, as published by Fastmarkets), averaged US$836/t for fine flake and US$1,005/t for medium flake, a 21% and 29% increase respectively on the average for 2017.

During Q4 2018 and early 2019, at least three projects outside China have completed feasibility studies and another company updated its existing feasibility study. Several others have completed prefeasibility studies, scoping studies, or resource updates.

Roskill’s Natural & Synthetic Graphite: Global Industry, Markets & Outlook report will be published in June 2019 and include analysis of graphite supply, demand and prices out to 2028. Click here to download the brochure and sample pages or to access further information.

To discuss the graphite market with Roskill, contact Suzanne Shaw: