• The PEA confirms Coosa as a project with low capital intensity and attractive potential returns
• Base-case pre-tax Net Present Value (NPV) of $444 million, post-tax NPV $320 million (8% discount); pre-tax NPV of $329 million, post-tax NPV of $236 million (10% discount)
• Pre-tax Internal Rate of Return (IRR) of 52.2%; post-tax IRR of 45.7%
• Base-case pre-tax annual cash flow of $67.5 million; post-tax annual cash flow of $49.7 million
• Life of Mine Gross Revenue (less royalty) of $2.4 billion
• Life of Mine Operating Expenses (OPEX) of $533 million
• Life of Mine plan of 27 years based on mining ~10% of Mineral Resource Estimate; mining is occurring within the Oxide Zone
• Surface mining operation; low Waste-to-Ore stripping ratio of 0.11:1
• Primary and secondary processing plants to produce 5,500 tons (5,000 tonnes) of specialty high-purity graphite products annually, ramping up to 16,500 tons (15,000 tonnes) annually in year 7; subsequent capital expenditures to be funded through free cash flow
• PEA is based on selling 2 specialty, high-value high-purity graphite products — CSPG (75% of planned production) and PMG (25% of planned production)
• Selling price for CSPG at $8,165 per ton ($9,000 per tonne) and PMG at $1,814 per ton ($2,000 per tonne) for a blended selling price of $6,577 per ton ($7,250 per tonne)
• Life of Mine average cash operating costs of $1,410 per ton ($1,555 per tonne) for final product of CSPG and PMG
