In July, Graphite One received a $37 mm grant from the US DoD to advance the feasibility study of their Graphite Creek deposit in Alaska, which is touted as the largest in the US. With today’s announcement from China of export restrictions, a comparison with Mason’s Lac Gueret deposit is once again of interest. The chart below, shows that Lac Gueret outclasses Graphite Creek in every category, except one; market cap. Note that GPH capital costs, NPV and IRR include the Phase II graphite processing plant in Washington state, whereas LLG values only include the graphite concentrator at Lac Gueret (producing 94% C, same as GPH). When NOU’s Phase II processing plant in Becancour is also included in the upcoming DFS, it’s probable that economics will become further skewed in Lac Gueret’s favour. Also note that graphite pricing is FOB China from more than a year ago, and both companies now use higher values in their PFSs.
Ore Value Calculation
FlakeMesh size | Price/t (US$)4 | Lac Gueret (LLG 50%) Grade 17.5%2 (385 lbC/t) | Graphite Creek Grade 6.5% (143 lbC/t) |
| | % | lb/t | $/t | % | lb/t | $/t |
-32 | $6200 | | | | 63 | 9 | 25 |
-50 | 1200 | 13 | 50 | 27 | 8 | 11 | 6 |
-80 | 500 | 16 | 62 | 11 | 13 | 18 | 4 |
-100 | 490 | 14 | 54 | 12 | 15 | 21 | 5 |
fines | 375 | 57 | 219 | 37 | 58 | 83 | 14 |
| Total ore value | $87/t | Total | $54/t |
|
| Deposit size (mmt) | 66 | 22 | | |
| Contained C (mmt) | 11,300 | 1,258 | | |
| Production1 (mmtC/y) | 500 | 77 | | |
| Strip ratio | 1.3:1 | 3:1 | | |
| Capital Cost ($US mm) | $1048 | $1240 | | |
| NPV (US) @ 8% | $1606 | $1400 | | |
| After tax IRR % | 26% | 22% | | |
| Payback (yrs) | 3.2 | 5.1 | | |
| | | | | |
| Market cap (mm) | $33 | $134 | | |
| | | | | |
1) production rate proposed in PFSs
2) average grade of larger scale mining operation proposed in revised PFS; previous DFS proposed mining the higher-grade core zone @ 28% C.
3) from Fig. 13-2, of GPH prefeasibility study.
4) FOB China, 2021