GCIGraphite miners news roundup: Tirupati Graphite, Sovereign Metals, Marula Mining
It's been an eventful week for graphite miners - here we highlight three of the biggest stories, featuring Tirupati Graphite, Sovereign Metals, and Marula Mining.
Tirupati Graphite
( ) issued an update this week on operations at its Vatomina and Sahamamy flake graphite projects in Madagascar. Tirupati announced it had successfully achieved commercial production of 97% pure flake graphite at Vatomina.
The company said its first container of 97% jumbo flakes of >50 mesh size had been produced for a German manufacturer of specialty graphite products. Tirupati explained it was advancing toward increasing high-grade output and associated sales, targeting a 10% uplift in basket price realisation from Madagascan production to US$910-935 per metric tonne in FY to March 2024.
Ramp up of production at Sahamamy, its other Madagascan asset, has continued in line with expectations since commencement of operations in February 2023, with production in March remaining in the guidance range of 800-1000 tonnes.
Tirupati maintained combined production guidance for Q1 FY24 at 6,100-6,500 tonnes.
Shishir Poddar, Executive Chairman, commented: "Achieving commercial production at a grade of 97% is another significant milestone in Tirupati's continued progress as we establish ourselves as a leading supplier of flake graphite outside of China. Our increasing output is timely with a demand supply gap forecast over the next year and we are well positioned to play our role in the evolving flake graphite opportunities."
Sovereign Metals
( ) updated the mineral resource estimate (MRE) for its Kasiya rutile-graphite deposit in Malawi. The new MRE moved over 0.5 billion tonnes from Inferred to Indicated - an increase of 81% to the higher confidence category. Over 66% of the MRE is now in the Indicated category.
Kasiya's global MRE now stands at 1.8 billion tonnes at 1.0% rutile and 1.4% graphite. The Indicated Resource stands at 1.2 billion tonnes at 1.0% rutile and 1.5% graphite. Kasiya remains the world's largest natural rutile deposit and second largest flake graphite deposit.
The updated MRE will underpin Sovereign Metals' mining inventory and mine plan for the forthcoming Kasiya pre-feasibility study (PFS), the results of which are expected in the coming months.
Sovereign Metals' Managing Director Dr Julian Stephens commented: "The conversion rate confirms the very consistent geological and grade continuity and is testament to the high-quality and robustness of the deposit. Kasiya is poised to become a major long-term supplier of the critical minerals natural rutile and graphite, with both forecast to be in near-term and significant supply deficit."
Marula Mining
( ) updated on recent exploration activities at its 73%-owned Bagamoyo graphite project in Tanzania.
Preliminary results from Marula's Phase 1 programme at Bagamoyo show two graphite trends at the Mihuga and Saadan South graphite prospects within the project area. Marula said contractor Geofields discovered several outcrops of graphitic schist and graphitic gneiss with large flake sizes, now being lab tested.
Geofields estimated the high-grade graphitic schist at Mihuga to have grades of 35%-75%. Geofields recommended an IP ground survey to be carried out to determine the graphite resource potential. Surface mapping has so far identified an E-W trending mineralised envelope, which extends up to 500m in strike length, interpreted to extend a further 2km over 6 granted licences.
Similarly, at the Saadan South prospect, Geofields identified a NNE trending graphite zone of approx. 150x50m, interpreted to extend a further 750m across 4 granted licences. High-grade graphitic schist within the Saadan South prospect have been estimated across 3-5m widths to have graphite grades of 35%-65%.
Given the width potential, flake sizes, and graphite content at Saadan South, Geofields recommended strike extensions to the SW and N, completion of IP surveys, and additional ground geophysical surveys to explore the graphite targets at depth and along strike.
These Phase 2 recommendations are currently being reviewed by Marula's technical team ahead of planned commencement of work in H2 2023.
The news followed an update from the company's second graphite project, Nyorinyori , on Tuesday, where visual observations identified jumbo graphite flakes present throughout, indicating high grades.
View from Vox
As a critical component in Li-Ion batteries, future demand for graphite is expected to follow a similar trajectory as other metals needed for battery/renewable tech production, outlined in the UK's newly updated Critical Mining Strategy.
The Government's actions anticipate that very soon the UK, along with the rest of the world, is going to need a lot more batteries. These cells will be needed to power EVs ahead of the ICE sales phaseout in 2030, as well as serve as grid storage to enable a full transition to sustainable electricity generation.
There is c. 100x more demand for Li-Ion batteries today than 10 years ago, yet EVs still represent only 13% of global car sales. And as the market has grown, the cost of Li-Ion cells per kWh has dropped by a factor of 10 since 2010. BCG estimates that 59% of all light vehicles and vans sold globally in 2035 will be fully electric or hybrid electric.
As the battery revolution unfolds, graphite miners will remain in the spotlight. We recommend investors interested in the battery space follow the three companies outlined here to stay up to date on graphite-related developments.
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