BLACK SWAN GRAPHENE ANNOUNCES SCOPING STUDY RESULTS DEMONSTRATING $1 BILLION NPV AND 54% IRR
- Scoping study results show a pre-tax net present value (NPV) of C$1.01 billion and an internal rate of return (IRR) of 54%.
- Average annual production target is 8,200 tonnes with an average production cost of C$2.80 per kg and a weighted average selling price of C$17.00 per kg.
- Projected construction period is 18 months with a project life of 25 years.
- Annual revenue estimate at maximal production rate is C$167.5 million with an average operating margin of 81%.
- None.
The Scoping Study provides an initial evaluation, including processing plant specifications as well as conceptual mechanical, civil, structural, and electrical designs, for its proposed 40,000 square-foot first large-scale production facility, based on the same processing technology currently being used in the facility located in the
It is worth emphasizing that, due to the modularity of Black Swan's patent-protected technology for large scale production, the Company is well positioned to also offer a licensing "at-the-point-of-use" model, which would further accelerate the adoption of its graphene products, particularly in the concrete industry.
Scoping Study Results Highlights | Pre-Tax | Post-Tax |
Net Present Value ( | ||
Internal Rate of Return (IRR) | 54 % | 47 % |
Payback Period | 3.8 years | 4.2 years |
Average Annual Production | 8,200 tonnes | |
Average Production Costs | | |
Weighted Average Selling Price | C | |
Average Annual Operating Cash Flow | | |
Average Annual Free Cash Flow | | |
Average Annual Operating Cash Flow (year 1 to 10) | | |
Average Annual Free Cash Flow (year 1 to 10) | | |
Direct Pre-Production CAPEX | | |
Indirect Pre-Production CAPEX | C | |
Pre-Production Capex Contingency ( | | |
Total Pre-Production CAPEX | | |
Operational Highlights |
Projected construction period: 18 months |
Project life: 25 years |
Size of facility: 40,000 square feet |
Maximal projected production: 9,868 tonnes per annum |
Annual revenue estimate at maximal production rate: |
Average operating margin: |
Average production costs include cost of graphite concentrate |
Simon Marcotte, President and Chief Executive Officer of Black Swan, commented: "We are incredibly pleased with the outstanding outcomes of the Scoping Study, marking a significant milestone towards establishing Black Swan as a global leader in graphene production. Over the past year since going public, our team has been actively engaged in all facets of this study, collaborating closely with Halyard and potential clients and distributors. These results provide the bedrock to effectively construct and operate the project, and we hold firm confidence in their feasibility and attainability from both operational and commercial perspectives. Furthermore, the conclusion of the study aligns seamlessly with the initial estimates established in partnership with Thomas Swan & Co. Ltd., prior to the inception of Black Swan Graphene, underscoring the caliber of the partnership."
The sale price assumptions used in the Scoping Study are in line with the Company's inflation adjusted original strategy and represent long term prices, but the Company remains confident that higher prices will be realized as customers value the suitability of the product derived from collaborative product development efforts. With these new products and additives, customers gain the opportunity to explore new markets and develop their own innovative products at a minimal variation in overall costs. Black Swan continues to anticipate that the availability of such low-cost and high-performance graphene products will fuel the adoption across volume-driven industries.
Black Swan cautions that the Scoping Study does not constitute a scoping study within the definition employed by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), as it relates to a standalone production facility and does not concern a mineral project. Therefore, disclosure standards prescribed by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") are not in the scoping study. Any references to scoping study, prefeasibility study or feasibility study by Black Swan Graphene Inc., in relation to our refined graphite starting material, are not the same as terms defined by the CIM Definition Standards and used in NI 43-101.
Halyard is a
Halyard's key qualifications include depth of expertise with significant experience producing all levels of studies and executing both greenfield and complex brownfield projects; the ability to deliver fast-track execution schedules with a significant and successful record of project delivery; an extensive small scale and fast track modular plant design and implementation record; as well as a strong commitment to environmental sustainability and prioritization of effective low-impact solutions.
Black Swan is focused on the large-scale production and commercialization of patented high-performance and low-cost graphene products aimed at several industrial sectors, including concrete, polymers, Li-ion batteries, and others, which are expected to require large volumes of graphene. Black Swan aims to leverage the low cost and green hydroelectricity of the province of
For more information, please visit: www.blackswangraphene.com
Black Swan Graphene Inc. on behalf of the Board of Directors
Simon Marcotte, CFA, President & Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to the TSXV listing, risk related to the failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with the industry; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in development activities or the completion of feasibility studies; the uncertainty of profitability; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of feasibility studies, and the possibility that future results will not be consistent with the Company's expectations; risks related to commodity prices fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Furthermore, performance results of graphene products as additives can vary widely depending on type and the specificity of the target material, the specifics of the graphene product itself, including but not limited to, carbon purity, particle size, surface agent, dispersion behavior, and application and usage methods. Investors are cautioned against attributing undue certainty to forward-looking statements and initial test results. These forward-looking statements and test results are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company's expectations or projections.
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SOURCE Black Swan Graphene Inc
