EDITOR: | October 5th, 2016 | 3 Comments

Elcora announces first shipment of processed graphite

| October 05, 2016 | 3 Comments
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On October 4, 2016, Elcora Advanced Materials Corp. (TSXV: ERA | OTCQB: ECORF), announced the first shipment of processed graphite from its Sri Lankan-based Ragedara mine. This represents a milestone achievement for the company in its quest to become a vertically integrated producer of graphite. Furthermore, now that the company is in production, it is expected that it will start to become cash flow positive in the near term.

The company is now increasing its workforce at the processing plant in an effort to ramp up production and meet demand. The company has confirmed that there is an excess of 1,000 tonnes of extracted graphite waiting to be processed.  This material will be distributed by ThyssenKrupp Metallurgical Products under a ten-year distribution agreement.

Historically the Ragedara project, is a low cost, high purity producer and had a production capacity of 18,000 tpa. Ian Flint, the company’s CEO presented at the 5th Cleantech Technology Metals Summit in June this year and confirmed that the total mine cost and processing cost was $550/tonne. The expectation is that ThyssenKrupp will be able to sell this material for $1,200-1,500/tonne. The ultimate idea is to be able to refine and purify the graphene where the margins are much higher (around 130%). This cost advantage makes Elcora a strong contender in the graphene market.

While graphite demand has been quite volatile over the last year with March in particular experiencing a sharp decline in flake graphite concentrate demand resulting in global production rates falling to under 50%, over the medium term graphite demand as an anode material in lithium ion batteries may experience as much as a two-fold increase.

This forecast is driven by the needs of around 12 lithium-ion mega-factories, currently under construction which collectively will be expected to consume around 340,000 tonnes of medium-flake graphite as a feedstock for spherical material by the end of the decade.


Lara Smith

Editor:

Lara has been an analyst for over ten years, starting her career as an equity analyst at Foord Asset Management and more recently as the ... <Read more about Lara Smith>


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Comments

  • Kris VD Cruyce

    Can anyone tell/explain/… how we should position Elcora versus Grafoid. It seems both are working with graphene and are, to my understanding, competitors.

    Grafoid via Focus metals had or has the same business model. But it seems that the story Grafoid/Focus is somewhere lost in the fog …

    Can any of the writers shine some light please.

    October 12, 2016 - 2:41 AM

    • Tracy Weslosky

      Thank you for the email Kris and for reading InvestorIntel. We are currently preparing to do some international analysis on graphene companies as Editor Adrian Nixon also writes the Global Graphene Report, and you will be able to use this for some research on the overall graphene market as I cannot get enough of the advanced technology evolving from the increasingly competitive processing of graphene. Watch for some new columns on this topic next week….

      October 13, 2016 - 2:30 PM

  • Kris VD Cruyce

    Hi Tracy. Thank you for the answer. Looking forward to the news.

    It is, more or less, clear what the status is of Elcora when we speak about graphene production. They claim to be the only ones able to produce it. If my understanding is correct of course.
    Would it be possible to have a status update from Grafoid. Because according to them, they can also do it. Perhaps an interview with Grafoid … ?

    October 14, 2016 - 5:13 AM

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