Evolution Energy Minerals
Financials:
Primary ticker: ASX: EV1
Stage of development: Exploration, Development, Production
Primary minerals: Graphite
Project to promote: Chilalo Project
Project location: Tanzania
Website: evolutionenergyminerals.com.au
Evolution is committed to supplying sustainable graphite solutions for the global green economy and in doing so, create the first net zero carbon graphite mine. Its Chilalo Project in Tanzania hosts a high-grade mineral resource of 20.1Mt at 9.9% total graphitic carbon (TGC) for 1,991Kt of contained graphite.
A DFS confirmed the opportunity to produce high-quality flake graphite at Chilalo and the Company intends to apply Chilalo flake graphite to downstream processing to produce battery anode material, expandable graphite, micronised graphite and graphite foil.
Cash: AUD14.5M (30 September 2022)
Debt: NIL
Major Shareholders:
Marvel Gold (MVL) – 26.86%
ARCH – 21.49%
HSBC Custody Nominees (Australia) Limited – 3.90%
BPM Investments Limited – 2.69%
Precision Opportunities Fund Ltd – 2.42%
Management Profile
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 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 has developed the company’s Chilalo graphite project for over 8 years.
What is your rationale for taking part in 121 Mining Investment?
What recent news would you like to highlight to investors attending?
29 September 2022 – Binding term sheet for coarse flake downstream JV
– Evolution has executed a binding term sheet for a joint venture with Yichang Xincheng Graphite Co Ltd (“YXGC”) for the downstream processing of coarse flake concentrate into value added graphite products (“Term Sheet”).
– The Term Sheet provides for the completion of a Market Study, Scoping Study and Definitive Feasibility Study to assess the development of a downstream processing plant.
– Upon completion of the Scoping Phase, the parties shall proceed to form an incorporated joint venture (JV). The parties’ interests in the JV will be Evolution 60% and YXGC 40%.
– The downstream JV is in addition to the binding offtake agreement with YXGC executed in May 2022 for the purchase of 30,000tpa of coarse flake concentrate from the Company’s Chilalo Graphite Project in Tanzania for an initial period of three years.
21 September 2022 – Strategy to become a vertically integrated producer
Evolution provides strategic context to recent announcements regarding downstream testwork to produce coated spherical graphite (“CSPG”) within Evolution’s broader strategy to become a vertically integrated producer of sustainably sourced graphite products and battery materials.
– Evolution’s primary focus is developing the advanced Chilalo Graphite Project in Tanzania with key upcoming milestones including:
o Execution of the Framework Agreement with the Government of Tanzania.
o Completion of the updated Definitive Feasibility Study (Updated DFS) and Front end Engineering Design (FEED).
o Project financing, with a final investment decision expected in the March quarter, 2023.
– Evolution’s vision is to become a vertically integrated producer of sustainably sourced graphite products and battery materials. The suitability of Chilalo’s high-quality graphite product to high-value applications is central to that vertical integration.
22 August 2022 – Premium performance of non-spherical by-products in high-value applications
Further processing and testwork of the non-spherical by-product from Evolution’s proposed battery anode flowsheet has outperformed leading products in high-value applications including:
– Battery cathode conductivity enhancement – Chilalo non-spherical by-product outperforms premium quality primary synthetic graphite; and
– Electrically conductive coatings – alkaline battery cells containing Chilalo’s electrically-conductive coating have a significantly higher discharge capacity (or run time) than premium quality primary synthetic graphite.
– This provides confidence that the non-spherical by-product will achieve premium prices, drastically improving the economics of a downstream battery anode plant.
– Qualification timeframes for these value-added applications are less than 12 months and Evolution has the data to commence qualification initiatives
What do you think makes your company such a compelling investment?
Compelling investment
1) Development Ready – Approvals and permits in place, capable of near term production
2) Industry-leading margins at existing graphite prices
3) Demonstrated performance in value-added applications – underpins vertical integration opportunity
4) Offtake and downstream collaboration with global leader for graphite foil
5) Low capex compared to other higher-margin peer group (financeable)