RCS - Beowulf Mining PLC - GAMP PFS Delivers Outstanding Economics

Beowulf MiningAnnouncement

14/05/2025 07:05

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RNS Number : 5379I  Beowulf Mining PLC  14 May 2025

 

 

14 May 2025

 

Beowulf Mining Plc

 

("Beowulf" or the "Company")

 

GAMP PFS Delivers Outstanding Economics and Growth Potential

 

Beowulf (AIM: BEM; Spotlight: BEO) and its wholly owned Finnish subsidiary
Grafintec Oy ("Grafintec") are pleased to announce the successful completion
of its Pre-Feasibility Study ("PFS") and receipt of the final PFS report,
confirming the Graphite Anode Materials Plant's ("GAMP") potential as a
low-cost, high-margin producer of anode material for the European lithium-ion
battery sector. The project economics were released on 10 March 2025 (see full
RNS at polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/w6o4n9w
(https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/w6o4n9w)
). Further, a video providing additional detail about the GAMP is available at
https://beowulfmining.com/grafintec-technical-summary-presentation-april-2025/
(https://beowulfmining.com/grafintec-technical-summary-presentation-april-2025/)
.

 

Grafintec aims to become a leading independent producer of high-performance
anode material, supporting the expanding lithium-ion battery industry across
Europe. The Company remains in advanced discussions with several promising
Finnish industrial areas to secure a long-term site for the plant. The site
selection and agreement are planned to be completed in the coming months.
Finland offers the ideal location for GAMP, with access to low-cost renewable
energy, strong government and local support, a highly skilled workforce, and
proximity to key European markets.

 

Grafintec's phased development strategy is designed to establish a scalable,
modular plant that will initially produce 25,000 tonnes of Coated Spherical
Purified Graphite ("CSPG") annually, enough to supply approximately 357,000
electric vehicles ("EVs") per year. The company plans to scale up production
to 75,000 tonnes per year in Phase 2, enabling the powering of over 1 million
EVs annually. The economics from the initial Phase 1 development are extremely
encouraging, with a post-tax Net Present Value using a discount rate of 8%
("NPV(8)") of €924 million and a post-tax IRR of 37% over 25 years. The
initial capital cost of €225 million has a pay-back period of just 3 years
from initial production, and the project generates €120 million in free cash
flow ("FCF") and €150 million in EBITDA annually at full production. Longer
term, the expansion to 75,000 tonnes per year brings substantial upside, with
a projected post-tax NPV(8) of €2.2 billion and €361 million of FCF per
year once fully scaled, underlining Grafintec's strong growth potential and
its position to meet the increasing demand for high-performance anode
materials.

 

Grafintec is developing a very cost-effective and environmentally sustainable
process, powered by Finland's abundant, low-cost renewable energy and avoiding
the use of highly toxic reagents and huge energy demand of competing
technologies. The GAMP process involves readily available reagents primarily
sodium hydroxide ("NaOH") and sulphuric acid, low to moderate temperatures and
optimisation work has demonstrated the ability to recycle significant
proportions of reagents, both reducing costs and environmental impacts. These
factors contribute to the GAMP's highly competitive operational cost of just
€2,381 per tonne.

 

Grafintec's growth potential goes beyond GAMP's initial production. While
initial graphite feedstock will be sourced from a trusted third-party supplier
with decades of proven track-record, Grafintec holds one of Europe's largest
flake graphite resources at Aitolampi. This, and other Grafintec projects
could be developed in the future to provide feed for the GAMP and develop a
fully integrated European graphite supply chain, which strengthens EU's supply
security and positions the Company to unlock significant long-term value.

 

Battery-grade graphite is classified by the EU as a strategic raw material
which opens the door to substantial public support, un-locking streamlined
permitting processes and access to capital. Grafintec intends to apply for
strategic project status and continues to review a range of support mechanisms
including grants and tax incentives. Grafintec is also in discussions with a
number of potential strategic partners to support the funding and development
of the GAMP.

 

Ed Bowie, Chief Executive Officer of Beowulf, commented:

 

"Raw material security has never been more critical. China dominates the
graphite market and has already placed restrictions on the export of graphite
products. With the ratcheting up of trade tariffs between China and the US,
the importance of secure, domestic supply chains has never been more
important. The conclusion of the GAMP PFS positions Grafintec to play a key
role within the European battery market supply chain."

 

Rasmus Blomqvist, Managing Director of Grafintec, commented:

 

"We are excited to announce the successful completion of the PFS for the GAMP
project, which confirms Grafintec's position as a low-cost, high-margin
producer of anode material. Our phased development approach sets the stage for
scalable production, supported by Finland's low-cost renewable energy and an
innovative process with lower reagent and energy usage, which should enable us
to become one of the most competitive and environmentally responsible
suppliers in the industry."

 

Substantial test-work undertaken in 2024

 

Grafintec, supported by lead consultant for the PFS, Dorfner Anzaplan GmbH
("Anzaplan"), successfully completed a comprehensive series of bench-scale
tests to optimise its GAMP process for producing high-performance graphite
anode material tailored for Lithium-Ion Batteries ("LIBs"). This work marked a
significant step toward establishing a cost-efficient, scalable, and
environmentally responsible anode material supply chain.

 

The three-step GAMP Process (Spheronisation, Purification, and Coating), shown
in the figure below, transforms mined graphite concentrate into CSPG, the
essential anode material for LIB's.

 

High-grade graphite concentrate is the primary feedstock for the GAMP. The
grade and quality (lack of impurities) of the concentrate is critical to
reducing the costs associated with the purification stage in the process.
Grafintec has a long-standing relationship with a graphite miner with a
multi-decade track record and the ability to provide sufficient volumes of
high-grade concentrate. A six-tonne sample from this producer was used for the
test-work.

 

The process for converting graphite concentrate into CSPG is as follows:

·    Spheronisation: milling process to convert concentrated flake
graphite into uniform particles, spherical graphite ("SG"). The process
produces two SG products, a medium SG product of 18 microns ("SG18") with a
yield of 47% and a fine SG product of 8 microns ("SG8") with yield of 13%. The
remaining material is high grade fine graphite which may have a number of
industrial applications.

·    Purification: upgrading SG from approximately 95% to greater than
99.95% fixed carbon content through hydrometallurgical process. This process
involves caustic (sodium hydroxide, NaOH) baking with a series of caustic and
acid leaching.

·    Coating: the purified SG is blended with petroleum needle coke and
heated in a furnace to form a thin layer of carbon material around the
purified SG producing CSPG. The coating process enhances the physical and
electrochemical properties of the anode material.

 

Highlights of the spheronisation test-work include:

·      High-performance spheronised graphite ("SG") with excellent tap
densities: SG18 (0.95 g/cm³) and SG8 (0.84 g/cm³), ideal for EV and consumer
electronics respectively

·      Strong process efficiency with a combined product yield of 61%,
exceeding the target and ensuring a high material recovery rate.

 

The purification process was also significantly improved, leading to:

·    Ultra-pure battery-grade graphite achieved with up to 99.99% fixed
carbon content ("Cg"), surpassing the industry benchmark of 99.95% Cg.

·      A 45% reduction in operating costs, driven by a 25% cut in NaOH
use, an 82.5% reduction in sulphuric acid, and a 33% drop in baking
temperature.

·      Substantial environmental benefits, with lower chemical usage and
energy consumption directly reducing emissions and waste.

 

In 2024, Grafintec also developed a wastewater treatment flowsheet that sets a
new standard in sustainability. This advanced process recovers over 90% of
sodium hydroxide from caustic wastewater, allowing it to be reused within the
production cycle. This significantly lowers the reagent costs and supports the
production of battery-graphite with 99.96% fixed carbon, ideal for battery
applications.

 

In addition, the process generates limestone as a valuable by-product, which
can be used in the process to neutralise acidic wastewater. The high quality
of this Limestone not only enhances internal process sustainability but also
presents an exciting commercial opportunity, as excess volumes may be suitable
for external sale unlocking a new potential revenue stream for the project.

 

This closed-loop system underscores Grafintec's commitment to environmental
responsibility, cost efficiency, and innovation, further strengthening the
company's position as a forward-thinking leader in the battery materials
sector.

 

 

 

 

Promising results from coating optimisation test-work

 

Grafintec has completed the first stage of its coating optimisation programme,
delivering strong results that further advance the company's graphite anode
material. Testing on three SPG samples has confirmed:

·      Successful petroleum needle coke coating, achieving a BET surface
area of 1.4 metres squared per gramme ("m²/g") and a tap density of 1.07
gramme per centimetre cubed ("g/cm³") meeting industry standards for CSPG.
These are key indicators of high-performance anode material.

·      Positive electrochemical performance, demonstrating clear
potential for application in LIB. In standard full-cell ("PAT cell") formation
tests, all three coated samples delivered first cycle efficiencies between
94.2% and 94.5%, matching the performance of leading industry reference
materials.

 

Building on these encouraging results, the next phase of test-work will focus
on refining coating conditions to further enhance BET, tap density, and
electrochemical performance.

 

GAMP development plan update

 

With the completion of a highly positive PFS for the GAMP project, Grafintec
is well-positioned to leverage its lower-energy, environmentally friendly
graphite production process. The next phase will include pilot testing and a
Definitive Feasibility Study ("DFS"), as the company actively seeks strategic
partners. In parallel, Grafintec is advancing its commitment to environmental
sustainability, with the conclusion of its Environmental and Social Impact
Assessment ("ESIA"), followed by the submission of its Environmental Permit
application, and the expected approval of the Environmental Permit in 2026,
ensuring that the GAMP project aligns with both industry standards and the
EU's green objectives.

 

The PFS has highlighted key opportunities to further optimize the economics of
the GAMP project. Our upcoming pilot testing will focus on refining
spheroidization, purification, and coating processes to maximize yield while
further reducing water and reagent consumption. These pilot campaigns are
designed to fine-tune process conditions, validate scalability, and produce
premium-quality CSPG samples for customer qualification, ensuring that our
product consistently meets the highest industry standards and supports the
growing demand for sustainable, high-performance anode materials within the
EU.

 

In addition to enhancing the yield of its CSPG, Grafintec is actively
exploring innovative ways to add value to the graphite fines produced as a
by-product from the spheronisation process, which represents nearly 40% of the
total output. By unlocking the full potential of this by-product, Grafintec
stands to significantly improve the economics of the project, driving even
greater profitability and sustainability.

 

The fine by-product presents exciting opportunities in various high-value
markets. For example, it could be utilised in the production of advanced
materials for the defence industry. Graphite's unique properties, such as high
thermal conductivity, electrical conductivity, light weight, and strength
makes it a potential attractive material for a range of defence applications
including advanced armour materials and military electronics. Additionally,
graphite can be incorporated into thermal management systems for defence
equipment, improving their performance and durability in high-stress
environments.

 

By leveraging its fine graphite by-product for these high-tech defence
applications, Grafintec has the potential to tap into a highly specialised
market, further diversifying its product portfolio and positioning itself as a
key player in the global graphite supply chain. This would not only bolster
Grafintec's economic outlook but also expand its reach into industries with
significant growth potential.

 

 

Qualified Person Review:

 

The technical information contained in this news release has been reviewed and
approved by Derick R. de Wit, B-Tech. (Chem Eng), FSAIMM, FAusIMM, an
independent qualified person ("QP", as defined in NI 43-101) from Anzaplan,
responsible for the overall PFS of the GAMP.

 

Anzaplan specialises in process design and engineering services for graphite
beneficiation projects. The Company offers advanced graphite evaluation
services for high value applications including strongly growing markets such
as anode materials in lithium-ion batteries. Starting with the initial
characterization of the graphite ore through development of a beneficiation
process to obtain a high- quality flake graphite concentrate, shaping and
purification into battery grade spherical graphite, characterization of
electrochemical performance and testing of lithium-ion cells.

 

 

Enquiries:

 

 Beowulf Mining plc
 Ed Bowie, Chief Executive Officer          ed.bowie@beowulfmining.com

 SP Angel
 (Nominated Adviser & Joint Broker)
 Ewan Leggat / Stuart Gledhill / Adam Cowl  Tel: +44 (0) 20 3470 0470

 Alternative Resource Capital
 (Joint Broker)
 Alex Wood                                  Tel: +44 (0) 20 7186 9004

 BlytheRay
 Tim Blythe / Megan Ray                     Tel: +44 (0) 20 7138 3204

 

 

About Beowulf Mining plc

 

Beowulf Mining is a mining company with main activities in exploration and
development in Sweden, Finland, and Kosovo. Beowulf's portfolio is diversified
by commodity, geography, and stage of development of the projects, and
consists primarily of iron ore, graphite, gold, and base metals. Beowulf
Mining is headquartered in London, England.

 

Cautionary Statement Regarding Forward-Looking Statements

 

This RNS contains forward-looking statements. Forward-looking statements are
subject to risks, uncertainties and assumptions. Forward looking statements
include, among other things, statements concerning the construction and
operation of the GAMP production facility and the costs and sales associated
with them. The Company cautions that there are certain factors that could
cause actual results to differ materially from the forward-looking information
that has been provided. The reader is cautioned not to put undue reliance on
this forward-looking information, which is not a guarantee of future
performance and is subject to a number of uncertainties and other factors,
many of which are outside the control of the Company; accordingly, there can
be no assurance that such suggested results will be realized.

 

The Company's ability to successfully construct and operate a commercial-scale
plant capable of producing CSPG in quantities consistent with the GAMP`s
business plan is subject to (a) the Company's ability to raise additional
capital in the future including the ability to utilize existing financing
facilities; (b) spot price and long-term contract price of CSPG; (c) risks
associated with our operations and the operations of our partners; (d)
government regulation of the graphite and energy storage battery industry; (e)
world-wide graphite and anode materials supply and demand, including the
supply and demand for energy storage  batteries; (f) regulatory and legal or
other problems the Company may encounter in the jurisdictions where the
Company operates or intends to operate, including but not limited to Finland;
(g) the ability of the Company to enter into and successfully close
acquisitions or other material transactions.

 

Statements and assumptions made in this document with respect to the Company's
current plans, estimates, strategies and beliefs, and other statements that
are not historical facts, are forward-looking statements about the future
performance of Beowulf. Forward-looking statements include, but are not
limited to, those using words such as "may", "might", "seeks", "expects",
"anticipates", "estimates", "believes", "projects", "plans", strategy",
"forecast" and similar expressions. These statements reflect management's
expectations and assumptions in light of currently available information. They
are subject to a number of risks and uncertainties, including, but not limited
to , (i) changes in the economic, regulatory and political environments in the
countries where Beowulf operates; (ii) changes relating to the geological
information available in respect of the various projects undertaken; (iii)
Beowulf's continued ability to secure enough financing to carry on its
operations as a going concern; (iv) the success of its potential joint
ventures and alliances, if any; (v) metal and mineral prices, particularly as
regards graphite. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the actual results
could differ materially from those presented and forecast in this document.
Beowulf assumes no unconditional obligation to immediately update any such
statements and/or forecast.

 

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