Northern Graphite Corp V.NGC

IRR 62%...wowsers. Very robust

[GripnRip]

Ottawa, Ontario--(Newsfile Corp. - July 11, 2022) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: ONG) (XSTU: ONG) (the "Company" or "Northern") is pleased to announce the completion of a Preliminary Economic Assessment ("PEA") for the restart of its Okanjande/Okorusu graphite operation in Namibia. The report, which will be filed on Sedar shortly, concludes that Northern can bring the project back into production by mid 2023 at an average production level of almost 31,000 tonnes per annum of graphite concentrate with a C1 production cost of US$775/tonne. The capital required to initiate production is US$15.1M which includes the installation of a new, two-stage grinding circuit, additional regrind equipment in the flotation plant, and a new tailings storage facility.

The PEA indicates very robust project economics as reflected in Table 1, with a Post Tax IRR of 62%, a Post Tax NPV of US$65M, and a payback of under 2 years based on a 10 year project life and a weighted average graphite price of US$1,500/tonne

[Capitalista]

Yes, extremely robust.  It should be no problem raising debt to cover most of the capital costs (assuming they can come up with 25% from their own funds).  I wonder, though, why there wasn't a bigger market reaction.  It appears nobody is following this little company.