Global Battery Materials Reports Strong PEA for Kearney Graphite Project
The Kearney Graphite Project shows an after-tax IRR of 67% and a payback period of 1.3 years, indicating strong economic viability. This assessment supports the critical mineral supply chain in North America, leveraging existing infrastructure and an estimated post-tax NPV of USD$183 million.
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The Preliminary Economic Assessment (PEA) for the Kearney Graphite Project reveals significant economic metrics, including an internal rate of return (IRR) of 67%, a post-tax net present value (NPV) of USD$183 million, and a payback period of 1.3 years. Initial capital expenditures are projected at CAD$65.9 million, with sustaining capital costs of approximately CAD$30.9 million over the mine's 20-year life.
The operation plans to utilize a conventional open-pit mining approach, processing material to produce a premium graphite concentrate. Economic projections are based on established market demand for graphite concentrate and related products, highlighting potential long-term cash flows of approximately USD$421 million.
However, risks include reliance on historical data and potential graphite price volatility. This project could significantly enhance domestic graphite supply in North America.
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