Graphex Mining

Primary ticker: ASX:GPX
Stage of development: Development
Primary minerals: Graphite
Project to promote: Chilalo Graphite Project

Live financials

Graphex Mining Limited is an ASX-listed company focused on developing the Chilalo Graphite Project in south-east Tanzania. Chilalo is fully permitted and produces one of the coarsest flake graphite products in the world which translates into the highest sales price and strong margins driving compelling economics.

In late 2018, Graphex signed a finance transaction with US private investment firm, Castlelake LP for US$80M in debt/equity subject to the satisfaction of certain conditions. The recently completed DFS is one of those conditions. Company MD Phil Hoskins can provide unrivalled graphite market insights following the Company’s strong commitment to its graphite market understanding.

Management Profile

Phil Hoskins, Managing Director

Mr Hoskins commenced his career at a large international accounting firm and has since gained corporate experience with both Australian and international listed companies. He is a senior executive with 15 years of broad finance and commercial experience across resources exploration, project development and production as well as large-scale property developments requiring debt and equity financing. Prior to becoming Managing Director of Graphex in June 2016, he was Chief Financial Officer and then Managing Director of IMX Resources Limited.

What is your rationale for attending 121 Mining Investment?

The Company would like to source an additional financier/s to co-invest alongside Castlelake in either of the debt or equity.

What recent news would you like to highlight to investors attending?

DFS (when announced in January)
Enhanced ‘Markets-First’ Strategy to Bolster DFS – 30 Oct 2019

What are your key goals for the next 3, 6 and 12 months?

3 Months:
Satisfy all outstanding conditions to the financing with Castlelake and work with them and others to raise the required funding to build the project.

6 Months:
Building the team to execute the project.

12 Months:
Be sufficiently advanced in construction (on schedule and budget)

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

One of the key challenges facing all companies in the graphite industry is negative sentiment following the poor performance of Syrah Resources and the opacity of the market (demand and pricing). Graphex has always sought to distinguish itself from Syrah, noting that Syrah’s product is predominantly fine flake graphite (in abundance in China), whilst Graphex’s product is very coarse flake. Graphex has worked with a number of independent consultants and tried to educate the market on the realities of the graphite market however the broader investment community is likely waiting for a graphite success story before the industry regains that trust. We are hopeful the Castlelake financing will provide the independent validation investors seek.
Securing an additional financier alongside Castlelake to finalise the project’s funding arrangements. Following completion of the DFS, we are running a process in that respect.

In a sentence, what do you think makes your company such a compelling investment?

Graphex’s Chilalo project produces one of the highest quality graphite products in the world which, when combined with the Company’s graphite market understanding and strategy, is likely to drive the highest margin graphite project in the world.