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 the coarsest flake graphite product in the world which translates into the highest sales price and margins driving compelling economics.
Graphex recently signed a binding finance transaction with US private investment firm, Castlelake LP for US$80m in debt/equity subject to the satisfaction of certain conditions, primarily completion of the BFS (underway) and resolution of issues associated with Tanzania’s mining legislation. The financing sees Graphex as the only graphite development company with a clear funding pathway to production.

Bridge Street Capital Partners Report

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 14 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. He was appointed as IMX’s Managing Director in October 2015 after being Chief Executive Officer since September 2014, before which he spent almost three years as IMX’s Chief Financial Officer.

What is your rationale for attending 121 Mining Investment?

Whilst Castlelake are willing to provide 100% of the equity required for construction, they have agreed that if Graphex could raise equity from the market on the same terms, they would be reduced to a 40% shareholder. Once the conditions to the financing are satisfied, a market raising of ~A$15-20m will be required. This will be undertaken at a price no greater than A$0.28, the price Graphex was trading at prior to agreeing to the financing. This represents a fantastic value opportunity with the raising priced on Tanzania risk and prior to a funding solution but being undertaken with all those risks having been removed.

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

29/10/18 – Graphex agrees funding package to fully fund Chilalo
20/09/18 – Updated PFS

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

3 Months:

Hopefully achieve a resolution with the Tanzanian Government on various mining legislation issues that satisfy our financiers requirements, this removing that impediment to the financing being released.

6 Months:

Progression of BFS such that when the Tanzanian legislation issues are resolved, the BFS can be delivered in a timely manner. This would likely be the final condition to be satisfied to unlock the financing.

12 Months:

Have satisfied all conditions to unlock the construction financing and have commenced construction.

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

The key risk is resolution of mining legislation issues in Tanzania to the satisfaction of Castlelake (financier). We recently made a detailed submission to the Tanzanian government providing independent third party advice on the issues including from experts in project finance, African mining law and political risk insurance. We are engaging with all levels of government, right to the top, to achieve a mutually beneficial outcome.

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

We are the only fully funded graphite developer, developing a project with the coarsest flake graphite product in the world that is likely to attract the highest margins in the industry.