Northern Graphite Corp. (TSXV:NGC,OTCQX:NGPHF) announced that the previously released bankable feasibility study for its Bissett Creek graphite project has been updated to reflect “a new and larger resource estimate,” as well as lower graphite prices and modifications to capital and operating cost assumptions.
As quoted in the press release:
The Bissett Creek project has a pre-tax internal rate of return (‘IRR’) of 19.8% (17.3% after tax) and a pre-tax net present value (‘NPV’) of $129.9 million ($89.3 million after tax) in the base case which uses a weighted average price of US$1,800/tonne for the concentrates that will be produced. This represents a substantial improvement in project economics over the FS which had a 15.6% pre-tax IRR at a price of US$2,100/t. The project has significant leverage to higher prices as the pre tax IRR increases from 19.8% to 25.7% and the pre-tax NPV from $129.9 million to $201.1 million at a price of US$2,100/t.
Gregory Bowes, CEO of Northern Graphite, commented:
Production will be almost entirely large and extra large flake concentrates which gives us a substantial advantage over deposits that will produce a high percentage of flake and -150 mesh fines as these products have experienced greater price declines and they have significantly greater marketing challenges.