EcoGraf Ltd Epanko Project Update Delivers US$516M NPV

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EcoGraf Limited (ASX: EGR) has completed its updated Bankable Feasibility Study (BFS) for the EcoGraf Ltd Epanko project update in Tanzania, delivering robust financial metrics that position the project for final development. The study confirms the project as a world-class graphite operation with a pre-tax NPV of US$516M and internal rate of return (IRR) of 31.1%, supporting EcoGraf's vertically integrated battery anode materials business strategy.

Key Financial and Technical Highlights

The updated BFS delivers significantly enhanced metrics compared to the 2017 study, with production capacity increased by 21.7% to 73,000 tonnes per annum for the first 15 years. Key outcomes include:

Financial Metrics:

• Pre-tax NPV₁₀%: US$516M
• Internal Rate of Return: 31.1%
• Annual EBITDA: US$85.7M (real 2025)
• Construction Capital: US$181.2M plus US$18.1M for Resettlement Action Plan

Production Profile:

• Annual Production: 73,000 tpa for first 15 years
• Life of Mine: 22 years
• Ore Reserve: 16.7 Mt at 8.2% total graphite carbon (TGC)
• LOM Basket Price: US$1,746/t (real 2025) – representing a 48% increase versus 2017 BFS

Operational Advantages:

• Strip Ratio: 0.86:1 (waste to ore)
• C1 FOB Operating Cost: US$544/t (first 10 years)
• Grid Power: 100% hydropower supply
• High-Grade Product: >96% carbon content across four size fractions

Strategic Market Positioning and Expansion Potential

Understanding Graphite Market Dynamics

Total Graphitic Carbon (TGC) represents the percentage of carbon in graphite concentrate that exists in crystalline graphite form – the key specification for battery anode applications. Higher TGC content delivers superior performance in lithium-ion batteries and commands premium pricing, with Epanko's >96% carbon grade significantly exceeding the industry benchmark of 94%.

Competitive Advantages

EcoGraf has positioned Epanko to capture growing market demand through several key differentiators:

The project benefits from existing offtake agreements covering 40,000 tpa with established partners including ThyssenKrupp Metallurgical Products GmbH, with an additional 20,000 tpa expected to convert to binding agreements once production commences.

Financing Progress and Development Timeline

Advanced Project Financing

EcoGraf has made significant progress securing mining project financing under the leadership of KfW IPEX-Bank, which is arranging up to US$105 million in senior debt under Germany's Untied Loan Guarantee (UFK) program. The completion of rigorous Independent Engineers Review (IER) and Environmental & Social due diligence has positioned Epanko to meet all major international project finance standards.

Furthermore, the company's commitment to esg mining practices has been a critical factor in attracting international funding partners. The project's use of 100% hydropower and comprehensive Resettlement Action Plan demonstrates alignment with global sustainability standards.

Key Financing Milestones:

• ✅ IER completed and approved
• ✅ Environmental & Social Management Planning completed
• ✅ Resettlement Action Plan (RAP) finalised
• ✅ All technical areas advanced to international standards
• 🔄 Senior debt facility documentation in progress
• 🔄 Equity funding strategy advancing with multiple parties

Construction Timeline

Following board approval and financial close, EcoGraf anticipates a 22-month construction period to first production, with the following key phases:

1. Site Access & Early Works (Months 1-3)
2. Major Construction (Months 4-18)
3. Commissioning & Ramp-up (Months 19-22)
4. Commercial Production (Month 23)

Multi-Stage Expansion Strategy

Stage 1: Foundation Production (73,000 tpa)

The current BFS establishes the foundation for EcoGraf's integrated business model, processing Oxide ore exclusively for the first 15 years. This approach leverages the favourable characteristics of the tanzania mining sector, which delivers:

• Higher throughput rates
• Lower mining costs (80% free-dig material)
• Simplified processing and tailings management
• Reduced capital requirements

Future Expansion Potential

EcoGraf has identified expansion opportunities to reach 390,000 tpa within 10 years through staged development:

This expansion strategy is supported by the largest development-ready graphite Mineral Resource in Africa totalling 290.8 Mt at 7.2% TGC for 21.0 Mt of contained graphite. Moreover, the EcoGraf Ltd Epanko project update demonstrates the company's commitment to scaling operations to meet anticipated demand growth.

Investment Thesis: Capturing the Electric Vehicle Revolution

Supply-Demand Fundamentals

Global graphite market analysis indicates demand will overtake projected supply from 2026, driven by:

• Lithium-ion battery growth for electric vehicles and energy storage
• Increased proportion of natural graphite in battery anodes
• Supply chain security concerns amid ongoing China export restrictions
• Recent Chinese export controls to Japan including graphite materials

However, the growing significance of lithium-ion battery materials in the global energy transition creates unprecedented opportunities for non-Chinese suppliers. The strategic importance of securing alternative supply sources has become increasingly evident to Western battery manufacturers.

China announced last month further restriction on exports of a wide range of dual‑use goods to Japan, citing national security concerns. Dual-use goods to Japan includes graphite.

Integrated Value Chain Strategy

EcoGraf's vertical integration strategy differentiates the company from pure-play miners by controlling the entire electric vehicle supply chain from mine to battery-ready materials:

Upstream (Epanko) → Midstream (Tanzania Shaping) → Downstream (HFfree® Purification) → Recycling

The company's proprietary HFfree® purification technology eliminates the use of hydrofluoric acid, delivering:

• Environmental advantages vs. traditional processing
• Lower chemical costs and waste products
• Strategic positioning in ESG-focused supply chains
• US$282M NPV potential from single 25,000 tpa purification facility

Why Investors Should Follow EcoGraf

Exceptional Project Economics

With a 31.1% IRR and US$516M NPV, Epanko ranks among the highest-return graphite projects globally, supported by:

Superior Resource Quality:

• High-grade 8.2% TGC ore reserve
• Premium >96% carbon concentrate
• Favourable 63% +100 mesh flake distribution
• Low strip ratio of 0.86:1

Operational Advantages:

• Grid power access reducing energy costs
• Established transport corridor to Dar es Salaam port
• Proven technology and experienced team
• Strong government support through framework agreement

Strategic Market Timing

EcoGraf is positioned to capitalise on the graphite supply shortage emerging from 2026, with the project strategically located to serve both European and Asian markets outside Chinese supply chains. For investors following a comprehensive mining investing guide, EcoGraf represents an exceptional opportunity in the critical materials sector.

Risk Mitigation Factors:

• 57% Proved ore reserves in first 10 years supporting debt repayment
• Binding offtake agreements covering 55% of nameplate capacity
• Multiple expansion options supported by large resource base
• Integrated downstream strategy capturing higher-margin value-added products

Managing Director Commentary

"The combination of the market leading quality of the Epanko Resource, with the completion of one of the most rigorous technical due-diligence programs, cements Epanko as a world-class graphite project, poised for development," said Andrew Spinks, Managing Director.

"The Company is now positioned well to take advantage of the forecasted huge growth in graphite demand, on the back of the increased electric vehicle and energy storage battery boom."

EcoGraf has positioned itself as a tier-1 graphite developer with the scale, quality and strategic positioning to become a leading supplier to the growing battery materials market. With advanced project financing, proven technology, and a clear path to production, the company represents a compelling opportunity to participate in the electric vehicle supply chain transformation.

For investors seeking exposure to critical materials and the energy transition, EcoGraf offers a rare combination of near-term production, exceptional project economics, and long-term expansion potential in one of the world's fastest-growing commodity markets. In addition, the latest EcoGraf Ltd Epanko project update reinforces the company's position as a premier investment opportunity in the graphite sector.

Is EcoGraf Your Next Strategic Investment Opportunity?

With a world-class graphite project delivering a 31.1% IRR and US$516M NPV, EcoGraf Limited (ASX: EGR) presents a compelling investment case as the global battery materials market accelerates. The completion of the updated Bankable Feasibility Study for the Epanko project, combined with advanced project financing and binding offtake agreements, positions EcoGraf to capitalise on the emerging graphite supply shortage from 2026. To explore how EcoGraf's vertically integrated strategy and exceptional project economics could fit into your investment portfolio, discover more about their transformative battery materials business at ecograf.com.au.