TSX:NEXT - Post Discussion
Post by
Betteryear2 on Feb 28, 2023 4:35pm
Expansion Strategy and Economic Results
TORONTO, ON / ACCESSWIRE / February 28, 2023 / NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to announce its global anode expansion strategy and the economic results from the study relating to its first battery anode facility (BAF) to be located in Mauritius. The highlights are as follows:
- Plans to construct, in stages, multiple BAFs globally in key jurisdictions that would be capable of producing commercial scale graphite anode material for lithium-ion batteries used in electric vehicle (EV) applications
- The Company's planned series of BAFs will leverage exclusive access to well-established proprietary anode processing technology currently supplying coated, spherical and purified graphite (CSPG) to major EV automotive companies (OEMs)
- First BAF (BAF1) to be located in Mauritius, in close proximity to the Company's Molo Graphite Mine in Madagascar and on a strategic shipping route that supplies Asian markets
- Lease for BAF1 signed on existing industrial premises, accelerating the development timeframe to first production and enabling supply of CSPG for qualification with OEM customers
- BAF1 initial production (Line 1) of 3,600 tpa of CSPG to be advanced on an accelerated timeframe, targeting production in Q2 2024
- Post-tax NPV8% of US$106.9 million, IRR of 42.7%, and payback within 2.2 years
- Capital costs of US$23.5 million and working capital of US$4.9 million
- Annual forecasted revenues of $33.7 million and EBITDA of $13.2 million.
- BAF1 facility capable of housing 3 additional production lines of 3,600 tpa each, resulting in total production capacity (lines 1-4) of 14,400 tpa of CSPG
- Post-tax NPV8% of US$439.7 million and IRR of 45.8%, and payback within 3.2 years
- Incremental capital cost of US$74 million, potentially financeable from Line1 cash flows
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