International Graphite Eyes European Supply Gap with Alkeemia JV

Speaking to the Investing News Network, International Graphite (ASX:IG6,OTCPL:IGRPF) Managing Director Andrew Worland said nearly all graphite consumed in Europe is currently sourced from China.

“That’s where the opportunity is,” he said, noting strong interest from European customers seeking to diversify supply and International Graphite growing at 3 to 5 percent per annum.

International Graphite is targeting this gap through a joint venture with Alkeemia, which seeks to build a significant graphite-processing facility in Italy.

Under the joint venture, Alkeemia will own 51 percent, while International Graphite will hold the remaining 49 percent. The companies will retain a 50/50 profit.

International Graphite is currently advancing technical and commercial workstreams, including site selection, infrastructure planning and capital cost estimates. It is also developing an economic model for the project.

Worland said the project will focus on processing graphite concentrate sourced from existing producers, rather than developing new mining operations.

Near-term milestones include securing commercial agreements by May, and reaching a final investment decision by June. International Graphite is also engaging with potential customers to establish offtake agreements to support development.

“We think we’ve got an incredible value. We’ve got a different approach than most of our graphite peers who are focused on mining primarily,” Worland added. “Our focus is very much on near-term cashflow, low-capital projects and efficient use of shareholder funds with a US$10 million to 12 million enterprise value at this point.”

The managing director said that more updates on these catalysts are expected over the next six to 12 weeks.

Watch the full interview with International Graphite Managing Director Andrew Worland above.