At a time when Tesla has emerged as the world’s largest car manufacturer (by market cap), graphite developer BlackEarth Minerals (ASX: BEM) has had their product confirmed by an independent lab as suitable for lithium-ion batteries.
The final testwork report was published by Dorfner ANZAPLAN, a leading German full service specialist in testing and engineering, which was engaged by BlackEarth in May 2019 to undertake extensive testing on graphite concentrate from their Maniry graphite project in Southern Madagascar.
The extensive testing undertaken confirmed BlackEarth’s graphite material can be successfully spheroidized and purified by industry standard methodologies; and that their uncoated spheroidized purified graphite has shown suitability for Li battery applications.
“The test results achieved by ANZAPLAN, further demonstrate the suitability of Maniry Project concentrate, for use in anode production for the lithium ion battery market,” said BlackEarth Minerals Managing Director, Tom Revy,
“The test results are an important component towards the end-user qualification process and ultimately off-take agreements, with industry leading manufacturers of lithium ion batteries.”
Since listing on the ASX in 2018, Revy and the BlackEarth team have expedited the Maniry Project to this point where they are in deep discussions with potential off-take partners which would include funding of a production facility.
Despite their small market cap around $5 million, an advanced Scoping Study was completed in 2018 identifying the Maniry Project to have strong financial return with a Project Life of 10 years, Net Present Value (@10% pre-tax) of US $103m and IRR pre-tax of 42%.
Today’s lab confirmation from ANZAPLAN has been welcomed by investors with BlackEarth’s share price reaching an intra-day high of $0.049, a rise of 14% on the previous day’s close of $0.043.
The news also comes a week after the world’s largest car manufacturer Tesla (NASDAQ: TSLA) saw a major surge in its share price, having started the year trading at US $418 per share but reaching an all-time high of $887 on 4 February, highlighting further global interest in electric vehicles which are powered by lithium-ion batteries, which in fact contain more graphite than lithium.
BlackEarth Minerals is aiming to finalise its strategic offtake partners by mid-2020.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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