REG - Total Graphite PLC - US Anode PFS

Total GraphiteAnnouncement

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RNS Number : 9095C  Total Graphite PLC  05 May 2026

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

5 May 2026

Total Graphite plc

('Total Graphite' or the 'Company')

 

US Anode PFS

US Anode PFS Provides Route To Downstream Vertical Integration

 

Total Graphite plc (TGR.L), the specialist flake graphite company and supplier
of the critical mineral for the global energy transition, is pleased to
announce the ongoing review to update the findings of the Pre-Feasibility
Study ("PFS") on a US-based Lithium-Ion Battery Anode purified spherical
graphite ("PSG") processing facility (the "US Anode PFS"). The US Anode PFS
was acquired from Waratah Minerals Limited (ASX: WRM, formerly Battery
Minerals Limited, ASX: BAT) under an acquisition agreement dated 16 August
2021, which was varied from time to time until completion of the transaction
in April 2023.

The US Anode PFS is complementary to the Company's existing Montepuez Graphite
Project in Mozambique, for which a Definitive Feasibility Study ("DFS") and
Value-Engineering Study ("VES") were completed in 2017. Combined, when
updated, they have potential to deliver a vertically integrated pathway for
development of a new globally significant graphite mine-to-battery anode
supply chain.

Highlights

•     An updated US Anode PFS could propel Total Graphite's
vertically-integrated battery anode strategy forward.

•     Completed in 2017, the US Anode PFS envisages production of 20,000
tonnes per annum ("tpa") of 99.99% purified spherical graphite ("PSG") for the
lithium-ion battery anode market, with an additional 20,000tpa recarburiser
by-product.

•     US Anode PFS provides an NPV of US$377 million at a 10% discount
rate, with an IRR of 76.5% and a project payback period of approximately 1.5
years

•     US Anode PFS envisaged capital expenditure of US$48 million, with
the US facility location selected as Reno, Nevada, providing proximity to
major US and Asian battery manufacturers

•     Consolidated economics of the Montepuez DFS and US Anode PFS
completed in 2017 are very robust: combined NPV of US$524 million, IRR of
36.2%, and projected payback of 3 years over a 30-year project life

•     Total Graphite will now commission updated feasibility studies to
reflect current market conditions and an optimised Montepuez mine plan

•     The Company intends to engage with various government programmes
supporting critical minerals supply chain development, including seeking
potential grant and financing support

•     Graphite is designated a Critical Raw Material by the European
Union, US, UK and other jurisdictions - demand for battery-grade anode
material is forecast to grow significantly in line with the global EV and
energy storage transition

•     The Company is taking next steps to update the respective
Montepuez DFS and US Anode PFS.

 

2017 US Anode PFS - Key Economics

A summary of the key outcomes from the 2017 US Anode PFS is set out in the
table below:

 Metric                                 US Anode PFS
 Annual PSG Production (99.99% purity)  20,000 tpa
 Annual Recarburiser By-Product         20,000 tpa
 Life of Project (LoP)                  30 years
 LoP Gross Revenue                      US$4,904 million
 LoP Net Revenue                        US$1,558 million
 Capital Expenditure (pre-production)   US$48 million
 NPV (at 10% discount rate)             US$377 million
 Internal Rate of Return (IRR)          76.5%
 Project Payback Period                 ~1.5 years
 LoP OPEX                               US$5,506 / tonne of PSG
 Assumed PSG Price                      US$7,500 / tonne
 Assumed Recarburiser Price             US$700 / tonne
 PSG ("Anode") Facility Location        Reno, Nevada, USA

Notes: All figures are pre-tax. 2017 PFS accuracy is ±30%. LoP OPEX includes
thermal purification/coating of US$3,000/t. Assumed PSG price of US$7,500/t is
considered conservative relative to independent market forecasts.

Consolidated Economics - Montepuez DFS and US Anode PFS

The table below presents the combined economic findings as at 2017 of the
Montepuez Graphite Project DFS and the US Anode PFS, representing the
integrated mine-to-battery value chain:

 Metric                          Montepuez DFS            US Anode PFS
 Annual Production               100,000 tpa concentrate  20,000 tpa PSG + 20,000 tpa recarb.
 Life of Project                 30 years                 30 years
 Total Net Revenue               US$2,217 million         US$1,558 million
 Total EBITDA / Cash Generation  US$809 million           US$1,558 million
 Capital Expenditure             US$126 million           US$48 million
 NPV (10% discount rate)         US$146 million           US$377 million
 IRR                             21.4%                    76.5%
 Project Payback                 4.75 years               ~1.5 years
 Average Annual EBITDA           US$27 million            US$52 million*

 

 CONSOLIDATED COMBINED PROJECT ECONOMICS
 Consolidated Net Revenue              US$7,120 million
 Consolidated Cash Generation          US$2,368 million
 Consolidated Capital Expenditure      US$174 million
 Consolidated NPV (10% discount rate)  US$524 million
 Consolidated IRR                      36.2%
 Consolidated Payback Period           3 years
 Average Annual EBITDA                 US$84 million
 Life of Project                       30 years

* Calculated from LoP cash generation over 30-year project life. All
consolidated figures are pre-tax and are derived from the original 2017 DFS
and PFS studies. Total Graphite will commission updated feasibility studies to
reflect current market conditions. These figures should be treated as
indicative only and are subject to revision

Next steps

Having secured the US Anode PFS, Total Graphite will now advance the following
workstreams:

·    Commissioning of updated feasibility studies for both the Montepuez
Graphite Project and the US Anode facility, incorporating:

o  Current graphite concentrate and PSG market pricing;

o  The optimized mine plan for Montepuez, including the higher-grade initial
mine sequence (12% TGC vs 8.8% TGC in the DFS), the reduced infrastructure
footprint and the owner-operator mining model;

o  Updated capital and operating cost estimates reflecting current
construction and input cost environments;

o  Advance metallurgical testing work and processing technology evaluations
since the original studies;

o  Assess current sovereign risk and permitting environment in Mozambique and
the United States.

•     Total Graphite will actively engage with relevant government
bodies and support mechanisms to seek financial and strategic backing for the
development of both the mine and the anode facility.

 

Offtake and Commercial Discussions

Building on existing relationships with Japanese, Chinese and US graphite
consumers and anode manufacturers, the Company will advance commercial
discussions for both flake graphite concentrate from Montepuez and PSG from
the US Anode facility.

The company notes in 2018, offtake agreements for 40% of the envisaged
production from the initial planned 50,000tpa Montepuez module had been
secured. The Company intends to pursue offtake agreements based on the
findings of the updated studies planned to commence imminently and is
already in discussions with certain historic and prospective offtakers.

Capital Strategy

The Board will develop a capital strategy appropriate for the development of
both projects, which may include debt financing, equity, strategic
partnerships, offtake prepayments and government grants.

Market Thematic, Strategic Context and Rationale

The rationale for the ongoing review to update the economics of the US Anode
PFS advances the Company's vertically-integrated battery anode strategy and is
supported by significant ongoing structural demand growth for battery-grade
graphite anode material. Graphite is the largest component by mass in
lithium-ion batteries and is the dominant component used in anode material.
The International Energy Agency (IEA) forecasts that demand for battery-grade
graphite could increase by a factor of more than 25 by 2040 under its net zero
scenario.

 

China currently accounts for approximately 70% of global graphite mining
output and over 90% of synthetic and natural graphite anode material
production. This concentration and level of dependence on a single source has
prompted governments in Western economies and allied nations to designate
graphite as a Critical Raw Material and to implement policies actively
incentivising the development new anode supply chains:

•     The European Union has listed natural graphite and synthetic
graphite as Critical Raw Materials under the EU Critical Raw Materials Act,
with binding targets for domestic processing and strategic stockpiles;

•     The United States Inflation Reduction Act and CHIPS and Science
Act contain provisions and incentives for critical minerals processing in the
US and allied nations;

•     The UK Government's Critical Minerals Strategy identifies graphite
as a priority mineral for the country's net zero and national security
objectives;

•     Japan and South Korea have established bilateral critical minerals
agreements with resource-holding nations to secure anode supply chains;

•     Major battery manufacturers and electric vehicle OEMs are actively
seeking to diversify their anode supply chains outside of China under
'friend-shoring' and supply chain resilience strategies.

 

Arun Somani, CEO of Total Graphite, commented:

"In the context of significant ongoing demand growth for new sources of Anode
Material for energy storage and the energy transition, the combination of a
fully permitted and advanced Montepuez graphite mine in Mozambique with a
potential US-based PSG anode facility offers a compelling strategy for Total
Graphite to develop a fully vertically-integrated business across the graphite
value chain and deliver value for shareholders. We look forward to working
with partners to update the studies across mining and downstream processing
arms of this strategy, working with various government agencies and
prospective offtakers, and providing further updates in due course."

 

ENDS

Enquiries:

 Total Graphite Plc                      +44 7356 057 265

 Arun Somani - Chief Executive Officer                        info@tirupati.co.uk (mailto:info@tirupati.co.uk)

 Alastair Bath - Investor Relations                           IR@tirupati.co.uk (mailto:IR@tirupati.co.uk)

 AlbR Capital Limited - Financial Adviser                     +44 (0) 20 7469 0930

 David Coffman / Dan Harris

 

info@tirupati.co.uk (mailto:info@tirupati.co.uk)

IR@tirupati.co.uk (mailto:IR@tirupati.co.uk)

 

AlbR Capital Limited - Financial Adviser

David Coffman / Dan Harris

+44 (0) 20 7469 0930

 

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