from the ASX...Renascor entered into non-binding Memoranda of Understanding (MOUs) to supply a total of up to 20,000tpa of Purified Spherical Graphite (PSG) from its 100%-owned Siviour Battery Anode Material Project (Siviour) in South Australia to leading Japanese-based global trading company, Hanwa Co., Ltd. (Hanwa),and Jiangxi Zhengtuo New Energy Technology Co. Ltd. (Zeto), a top ten anode producer globally.
As a response to PSG demand from Renascor’s existing offtake partners and increasing inbound enquiries from major anode manufacturers, Renascor commenced work to investigate a substantial increase to PSG production through an increaseto Siviour’sStage 1 PSG production capacity and a subsequent Stage 2 expansion.
Renascor achieved first stage product qualification of Siviour PSG with both Zeto and Minguang New Material, with the results enabling the two parties to progress engagement towards binding PSG offtake agreements.
Advanced mineral processing trials undertaken by leading independent battery mineral consultancy group Dorfner Anzaplan have confirmed the suitability of Renascor’s eco-friendly, hydrofluoric acid-free (HF-free) proprietary technology to purify graphite to battery grade, with results of up to 99.98% total carbon (TC) (versus anode industry standard of 99.95% TC).
Letter of in-principle support received from the Clean Energy Finance Corporation (CEFC), an Australian Government backed clean energy technology financier. The CEFC support adds to in-principle financing support received from Export Finance Australia (EFA), and Atradius, the respective export credit agencies of the Australian and Dutch Governments.
Renascor received confirmation from the South Australian Government Treasury that Siviour has been classified as a ‘New Mine’ for the purposes of State royalty calculations. The granting of New Mine status means that the Siviour will incur a reduced royalty rate of 2% of the net value of the minerals recovered from Siviour through 30 June 2026, representing a reduction from 3.5% over the initial years of production.
On 23 April 2021,Renascor announced a placement (Placement) to raise approximately $15 million (before costs) led by institutional investors in Australia and overseas. With the proceeds from the Placement, the SiviourProject is now fully funded up to the construction phase, targeted to commence in 2022.
Renascor’s cash position as of 31 March 2021 was approximately $4.1m. This does not include $15 million in proceeds (before costs) from the Placement, which are expected to be received in the current quarter.
Firm commitments received to raise $15 million, led by institutional investors in Australia and overseas.
Renascor’s Siviour Battery Anode Material Project in South Australia is now fully funded up to the construction phase, targeted to commence in 2022.
Key work streams to be funded from the capital raise will include the completion of all technical, regulatory and marketing workstreams to reach a Final Investment Decision.
Renascor is on track to develop the world’s first integrated, in-country mine and Purified Spherical Graphite (“PSG”) operation outside of China as demand for PSG from lithium-ion battery anodes continues to grow strongly.
Renascor Resources (ASX:RNU) (“Renascor”) is investigating green financing options for the Siviour Battery Anode Material Project (the “Project”) in South Australia.
Projects with high standards of Environmental, Social and Governance (“ESG”) are experiencing increasingly high levels of interest from equity and debt capital markets, with a heightened awareness of global environmental issues driving the increased demand for green financing products.
The Siviour Project exhibits strong ESG credentialsthat have helped attract in principle financial support from Australia’s Clean Energy Finance Corporation (“CEFC”), an Australian Government backed clean energy technology financier.
Renascor plans to develop the world’s first integrated, in-country mine and Purified Spherical Graphite (“PSG”) operation outside of China. With executed offtake MOUs and increasing inbound offtake demand, Renascor plans for a substantial increase in PSG production capacity beyond the currently planned 28,000tpa.
Renascor is on track to produce a material critical to the electric vehicle supply chain, at a low cost, within a Tier 1 ESG jurisdiction, using an ESG friendly spherical purification process.
Renascor has engaged leading Nordic investment bank ABG Sundal Collier and financial advisers BurnVoir Corporate Finance to arrange financing solutions.
As a response to increasing inbound enquiries from major anode manufacturers, Renascor Resources (ASX: RNU) (“Renascor”) has commenced work to investigate a substantial increase in Renascor’s Stage 1 production capacity beyond the currently planned 28,000tpa of Purified Spherical Graphite (“PSG”).
Renascor has also determined to bring forward feasibility work for the Stage 2 expansion of Renascor’s planned Battery Anode Material operation in South Australia.
With Renascor’s Siviour Graphite Deposit being the world’s second largest Proven Reserve of Graphite and the largest Graphite Reserve outside of Africa, Renascor will pursue an increase in production capacity (across both Stages 1 and 2) that leverages this asset and maximises value for shareholders.
Renascor continues to progress PSG product validation and offtake agreement terms with existing offtake MOU customers Minguang New Material, Zeto and Japanese group Hanwa, with a view to completing binding offtake agreements for its PSG production.
Renascor is concurrently progressing additional potential PSG offtake agreements and undertaking PSG validation with other anode and battery companies, with a view to securing additional offtake commitments that may allow for the expanded Stage 1 production capacity and further expansion of the project with additional Stage 2 PSG production capacity.
Renascor Resources (ASX: RNU) (“Renascor”) executes non-binding Memorandum of Understanding (“MOU”) with leading Japanese-based global trading company, Hanwa Co., Ltd. (“Hanwa”).
Hanwa is amongst the largest traders of battery chemicals in the Asian region, with a market capitalization of ¥ 140 billion (A$1.7 billion) and reported net sales of more than ¥ 1,700 billion (A$21 billion) in 2020. Hanwa has a long history of trading with some of the world’s largest metal and chemical producers and operates a dedicated Battery Team focussed on supplying graphite and other metals across the global battery value chain.
The MOU with Hanwa covers the purchase of up to 10,000 tonnes per annum (tpa) of Purified Spherical Graphite (“PSG”) over a term of up to ten years. This represents approximately one-third of the projected initial PSG production capacity of Renascor’s planned Battery Anode Material operation in South Australia.
Renascor has now achieved potential commitments covering in excess of 100% of Siviour Stage 1 PSG production, after previously executing MOUs and achieving initial product qualification with anode companies Shanxi Minguang New Material Technology Co. Ltd (“Minguang New Material”) and Jiangxi Zhengtuo New Energy Technology Co. Ltd. (“Zeto”).
Renascor is concurrently progressing additional potential PSG offtake agreements and undertaking PSG validation with other anode and battery companies, with a view to securing additional offtake commitments that may allow for an expanded Stage 1 production capacity and / or enable a further expansion of the project with additional Stage 2 PSG production capacity.
Renascor Resources (ASX: RNU) (“Renascor”) welcomes the Australian Government’s commitment to the downstream production of critical minerals in Australia after the release of the ‘Resources Technology and Critical Minerals Processing National Manufacturing Priority road map’ (“Road Map”).
The Road Map identifies Renascor’s Siviour graphite deposit as one of two selected Critical Minerals projects located in South Australia.
Renascor’s Siviour deposit in South Australia contains the largest reported Ore Reserve of Graphite outside of Africa, and the second largest Proven Reserve in the world.
Renascor’s Siviour Battery Anode Material Project in South Australia comprises the Siviour Graphite Mine and Concentrator and the downstream production of 28,000tpa (Stage 1) of high value Purified Spherical Graphite for sale directly into the lithium-ion battery supply chain.
Renascor is on track to become the world’s first integrated, in-country mine and Purified Spherical Graphite operation outside of China.
Project Development:
Recent flotation optimisation testwork shows improved graphite purities and recovery, validating the flowsheet in preparation of detailed engineering design and presenting opportunities for higher plant productivity and lower unit operating costs for the Graphite Concentrate operation.
Advanced mineral processing trials of Renascor’s eco-friendly, HF-free downstream purification process, which was recently validated in trials by German industrial processing specialists Dorfner Anzaplan, continue, with results to be used for detailed engineering design for the construction of Renascor’s downstream Purified Spherical Graphite (”PSG”) manufacturing facility.
Final Battery Anode Material Manufacturing Facility Site Selection Assessment has commenced to select and acquire the rights to the site for the PSG downstream processing facility.
Regulatory workstreams and approvals are being prepared for the submission of Renascor’s Program for Environmental Protection and Rehabilitation (“PEPR”).
Stakeholder engagement is progressing well with Letters of Support secured from all levels of government and numerous community and regional groups.
Financing Strategy:
Letter of in-principle Support received from the Clean Energy Finance Corporation (“CEFC”), an Australian Government backed clean energy technology financier.
CEFC in-principle support adds to the in-principle financing support received from Export Finance Australia (“EFA”), and Atradius, the respective export credit agencies of the Australian and Dutch Governments.
Offtake and Marketing:
Offtake process for remaining one-third of Stage 1 PSG progressing well, with Renascor receiving strong interest from leading battery anode makers and global commodity traders.
Customer testing of Siviour PSG is ongoing with a number of leading battery anode material customers for the remaining one-third of Stage 1 PSG.
Negotiation of Binding Offtake Agreements for existing Offtakers is progressing well, with preparation of bulk PSG samples underway.
Renascor has been accepted into the European Battery Alliance (EBA).
The EBA was established in October 2017 by the European Commission, the Executive Branch of the European Union, to bring together key groups in the battery material, technology and financing space with the objective to build a strong and competitive pan-European battery industry.
Renascor’s acceptance into the EBA strengthens the position of the Siviour Battery Anode Material Project as a potential future supplier to the European market of the Purified Spherical Graphite required for production of electric vehicle battery anodes.
Renascor holds the largest reported Ore Reserve of Graphite outside of Africa, and the second largest Proven Reserve in the world.
Membership to EBA provides Renascor the opportunity to collaborate with key European stakeholders such as the European Investment Bank, and end users seeking reliable, secure and sustainable access to Purified Spherical Graphite as part of the Europe’s increasing investment in the lithium-ion battery supply chain.
Advanced mineral processing trials undertaken by leading German independent battery mineral consultancy group Dorfner Anzaplan confirm suitability of Renascor’s eco-friendly technology to purify graphite to battery anode grade, with results up to 99.98% Carbon (C) (versus anode industry standard of 99.95% C).
The results follow over five years of mineral processing tests by Renascor that have led Renascor to adapt a proven technique that avoids the use of hydrofluoric (HF) acid to create an environmentally friendly and cost-effective method for purification of Renascor’s Siviour natural flake graphite for use in lithium-ion battery anodes.
Renascor’s HF-free purification technique has already been used to produce Purified Spherical Graphite (PSG) from Siviour Grpahite Concentrates that exceeds anode industry quality specifications, including having achieved first stage qualification with two world-class anode company offtakers that account for up to two-thirds of Renascor’s stage one production.
Renascor intends to use its HF-free purification technology to create a competitive advantage in the production of high-quality PSG with leading environmental, social and governance (ESG) credentials in the first integrated in-country mine and battery anode material operation outside of China.
The results of the current purification trials will be used for detailed engineering design for construction of Renascor’s planned Stage 1, 28,000tpa PSG manufacturing facility in South Australia, as well as to support on-going offtake and finance discussions.
RenascorResources Limited is pleased to announce that it has received confirmation from the South Australian Government Treasury that the Siviour Graphite Project has been classified as a ‘New Mine’ for the purposes of State royalty calculations.The successful attainment of New Mine status means that the Project will incur a reduced royalty rate of 2% of the net value of the minerals recovered from the Siviour Mine through 30 June 2026, representing a reduction from 3.5% over the initial years of production.
In January 2021, Renascor signed a non-binding Memorandum of Understanding (MOU) with anode company Jiangxi Zhengtuo New EnergyTechnology Co. Ltd. (Zeto) for the purchase of up to 10,000tpa of Purified Spherical Graphite (PSG) over a ten year term.
Renascor is pleased to report that it has now achieved first stage product qualification of Siviour PSG with Zeto, with the results enabling the two parties to progress engagement towards binding PSG offtake.
A total of 20,000tpa of Siviour PSG has now achieved first stage qualification with two world-class offtakers, following initial qualification by Minguang New Material in January 20211.
Zeto is a top ten anode producer globally, with current anode production capacity of 30,000tpa and an additional 20,000tpa under construction and planned to be in operation by 2022. Zeto is major supplier of natural flake graphite anodes and is active in developing anode technologies, including silicon-carbon anode material.
Zeto supplies anodes to some of the world’s largest battery makers, such as Hong Kong listed BYD Co. Ltd, the world’s second largest manufacturer and retailer of electric vehicles, with a current market capitalisation of around US$100 billion.
Renascor is extremely pleased with its progress in relation to Stage 1 PSG offtake and is concurrently discussing additional potential PSG offtake agreements and undertaking PSG qualification and validation with other anode and battery companies, with a view to securing binding commitments for its planned 28,000tpa Stage 1 PSG operation.
Renascor enters into non-binding Memorandum of Understanding (MOU) with one of China’s leading battery anode companies, Jiangxi Zhengtuo New Energy Technology Co. Ltd. (Zeto), to supply up to 10,000 tonnes per annum of Purified Spherical Graphite (PSG) from Renascor’s 100%-owned Siviour Battery Anode Material Project in South Australia.
Zeto is a top ten anode producer globally, with current anode production capacity of 30,000tpa and an additional 20,000tpa under construction and planned to be in operation by 2022.
Zeto supplies anodes to some of the world’s largest battery makers, such as Hong Kong listed BYD Co. Ltd, the world’s second largest manufacturer and retailer of electric vehicles, with a current market capitalisation of around US$100 billion.
Together with Renascor’s other PSG MOU with anode company Shanxi Minguang New Material Technology Co. Ltd. (Minguang New Material), Renascor now has non-binding offtake agreements in place for up to 20,000tpa, which represents approximately two-thirds of Renascor’s planned annual PSG production capacity of 28,000tpa.
Renascor achieves first stage product qualification of Siviour PSG with Minguang New Material. Minguang New Material is part of one of China's largest battery supplier groups. The results of the product qualification tests enable Renascor and Minguang New Material to enter into negotiations regarding binding PSG offtake.
Cash position of approximately $4.6m as of 31 December 2020.
In September 2020, Renascor signed a non-binding Memorandum of Understanding (MOU) with anode company Shanxi Minguang New Material Technology Co. Ltd. (Minguang New Material) for the purchase of up to 10,000tpa of Purified Spherical Graphite (PSG) over a ten year term.
Under the terms of the MOU, Minguang New Material and Renascor agreed to work together to undertake product validation tests prior to concluding a formal binding agreement.
Renascor is pleased to report that it has now achieved first stage product qualification of Siviour PSG with Minguang New Material, with the results enabling the two parties to enter into negotiations regarding binding PSG offtake.
Minguang New Material is a subsidiary of Fujian Metallurgical Holding Co. Ltd. (Fujian Metallurgical) a large Chinese state-owned enterprise with 142 subsidiaries (including 3 listed companies), more than 38,000 employees and total assets of approximately A$17 billion.
Fujian Metallurgical’s holdings include a majority ownership interest in XTC New Energy Materials Co. Ltd., China’s largest battery cathode producer, and Minguang New Material, which is developing a 40,000 tonnes per annum (tpa) battery anode manufacturing facility in China’s Shanxi Province.
China continues to be the dominant market for PSG. Chinese anode production capacity represents around 85% of global capacity, and over 90% of capacity currently under construction.
Renascor is concurrently discussing additional potential PSG offtake agreements and undertaking PSG validation with other anode and battery companies, with a view to securing binding commitments for its planned 28,000tpa PSG operation.
Renascor Resources has been accepted into the newly formed European Raw Materials Alliance (ERMA).
ERMA was established in September 2020 by the European Commission, the Executive Branch of the European Union, to provide European countries strategic access to Critical Raw Materials (CRMs).
The European Commission's list of CRMs includes Natural Graphite, for which Renascor holds the largest reported Ore Reserve outside of Africa, and the second largest Proven Reserve in the world.
Membership to ERMA provides Renascor the opportunity to collaborate with European end-users seeking reliable, secure and sustainable access to Graphite Concentrates and Purified Spherical Graphite as part of Europe's increasing investment in the lithium-ion battery supply chain.
Preliminary half-cell trials of Renascor’s Siviour Purified Spherical Graphite (PSG) in silicon-composite anodes deliver exceptional electrochemical performance results.
The addition of silicon in graphite anodes offers the potential to improve the storage capacity of lithium-ion batteries, with considerable attention focused on developing an efficient next-generation, silicon-enhanced anode.
The silicon-enhanced anode test program, undertaken by next-generation silicon-composite anode developer Sicona Battery Technologies Pty Ltd, was designed to assess initial discharge capacity, the amount of charge delivered by a battery during its initial use.
The tests, which were an initial, unoptimised trial of silicon-enhanced anodes produced with Renascor’s Siviour PSG, returned significantly higher initial discharge capacity than graphite-only anodes (up to 81% higher).
Silicon-composite anodes produced with Renascor's Siviour PSG met or exceeded the performance of all reference natural graphite previously tested by Sicona, a result attributed by Sicona to the favourable crystallinity, uniformity and surface area of Renascor’s Siviour PSG.
As a result of these positive preliminary results, Renascor and Sicona plan to undertake more extensive full cell tests to further validate the viability of using Renascor’s Siviour PSG in Sicona's silicon-enhanced anodes, prior to conducting a commercial trial at Sicona’s planned pilot production plant in Wollongong, New South Wales.
Successful testwork using emerging Silicon composite technology builds on Renascor's previously demonstrated performance in conventional graphite battery anode technology testing.
Renascor enters into non-binding Memorandum of Understanding (MOU) with Chinese anode company Shanxi Minguang New Material Technology Co. Ltd., part of one of China’s largest battery supplier groups, to supply up to 10,000 tonnes per annum of Purified Spherical Graphite (PSG) from Renascor’s 100%-owned Siviour Battery Anode Material Project in South Australia.
Other significant milestones for the Siviour Battery Anode Material Project achieved during the quarter include:
Renascor completes share placement to $3.6m to fund work streams for the Siviour and Carnding projects. Cash position of approximately $5.2m as of 30 September 2020.
Renascor enters into non-binding Memorandum of Understanding (MOU) with Chinese anode company Shanxi Minguang New Material Technology Co. Ltd. (Minguang New Material), a subsidiary of Fujian Metallurgical Holding Co. Ltd. (Fujian Metallurgical). Fujian Metallurgical is a large, Chinese state-owned enterprise with 142 subsidiaries (including 3 listed companies), more than 38,000 employees and total assets of approximately A$17 billion. Fujian Metallurgical’s holdings include a controlling ownership interest in XTC New Energy Materials Co. Ltd., China’s largest battery cathode producer, and Minguang New Material, which is developing a 40,000 tonnes per annum (tpa) battery anode manufacturing facility in China’s Shanxi Province. The MOU covers the purchase of up to 10,000tpa of Purified Spherical Graphite (PSG) over a ten year term, which represents approximately one-third of the projected initial PSG production capacity of Renascor’s planned Battery Anode Material operation in South Australia. Under the terms of the MOU, Minguang New Material and Renascor have agreed to work together to undertake additional product validation tests prior to concluding a formal binding agreement. China continues to be the dominant market for PSG. Chinese anode production capacity currently represents around 85% of global capacity, and over 90% of capacity under construction. Renascor is concurrently discussing additional potential PSG offtake agreements and undertaking PSG validation with other anode companies in China and elsewhere in Northeast Asia and battery manufacturers in Northeast Asia and Europe, with a view to securing binding commitments for its planned 28,000tpa PSG operation.
Firm commitments received by Renascor Resources Limited for a Placement to raise $3.6 million to fund work streams for Renascor’s: Siviour Battery Anode Material Project — containing the world’s second largest reported Proven Reserve of graphite on the Eyre Peninsula, South Australia; and Carnding Gold Project - drill-ready, high-grade, near-surface gold prospects in emerging gold province in Central Gawler Craton, South Australia.
Renascor’s recently completed Battery Anode Material Study confirmed that Siviour is able to produce Purified Spherical Graphite (PSG) at amongst the lowest cost of any graphite development in the world. Independent qualification tests now confirm that Siviour PSG meets product specifications required for integration of PSG into lithium-ion battery anodes. Tests undertaken by a German graphite specialist have demonstrated that Siviour PSG meets strict anode specifications for physical and chemical properties, including particle size, surface area, tap density and impurities. The tests, which were performed on Siviour spheronised graphite that had been purified to 99.97% carbon PSG through caustic roast purification, further support Renascor’s ability to process Siviour graphite into high-value PSG through the more environmentally-friendly caustic roast purification method. PSG is experiencing significant demand growth, with a forecasted annual growth rate of up to 29% per year through 20302. The test results validate Renascor’s plan to be a low-cost supplier of PSG in the first integrated in-country mine and battery anode materials operation outside of China. The results are an important step in qualifying Siviour PSG for use by anode manufacturers and will be used to support continuing offtake discussions.
Battery Anode Material Study confirms the value of integrating of a Purified Spherical Graphite processing operation with Renascor’s 100%-owned Siviour Graphite Project in South Australia. Key study findings include: World-class, low-OPEX project: By leveraging off the comparatively low-cost of Siviour Graphite Concentrates as feedstock for PSG production, and co-locating the downstream operation in Australia, study shows a globally competitive gross operating cost of US$1,989 per tonne of PSG. Compelling economics: Results of a combined mine and battery anode materials operation, include: Post-tax unleveraged NPV of A$713 million; Post-tax unleveraged IRR of 33%; Total start-up capital cost of A$204 million, consisting of A$114 million for the mine and concentrator and A$90 million for the battery anode operation; and Average annual EBITDA of A$156 million. Alignment with offtakers: Planned PSG production averaging 28,000 tonnes per annum aligns with positive feedback from potential offtake and finance partners seeking to diversify supply chain from China, which currently controls 100% of downstream processing capacity for converting Graphite Concentrates to PSG. Updated Mineral Ore Reserve estimate for Renascor’s 100%-owned Siviour Graphite Project in South Australia confirms it as the largest reported total Ore Reserve of graphite outside of Africa, and the second largest reported Proven Reserve of graphite in the world. Independent purification tests by German graphite specialist ProGraphite GmbH confirm the ability to process Siviour graphite into high-value PSG through the more environmentally-friendly caustic roast purification method. Renascor engages European investment bank ABG Sundal Collier to assist in the proposed debt financing for the vertically integrated Siviour Graphite Concentrate and Battery Anode Material operation. Cash position of approximately $1.9m as of 30 June 2020.
Updated Mineral Ore Reserve estimate for Renascor’s 100%-owned Siviour Graphite Project in South Australia confirms it as the largest reported total Ore Reserve of graphite outside of Africa, and the second largest reported Proven Reserve of graphite in the world. Updated Ore Reserve estimate for the Siviour Project includes: Proven Reserves of 15.8Mt at 8.4% total graphitic carbon (TGC) for 1.3Mt of contained graphite; Probable Reserves of 35.8Mt at 6.9% TGC for 2.5Mt of contained graphite; Total Reserves of 51.5Mt at 7.4% TGC for 3.8Mt of contained graphite. The upgraded Ore Reserve provides additional confidence in the size and quality of the Siviour deposit as a consistent source of high-quality graphite supporting a mine life of 40+ years. The results further support onging offtake and finance discussions for Renascor’s integrated mine and battery anode material project.
Renascor’s recently completed Battery Anode Material Study confirmed that Siviour is able to produce Purified Spherical Graphite at amongst the lowest cost of any graphite development in the world. Independent purification tests have now confirmed the ability to process Siviour graphite into high-value Purified Spherical Graphite (PSG) through the more environmentally-friendly caustic roast purification method. Tests undertaken by German graphite specialist ProGraphite GmbH (ProGraphite) have successfully upgraded Siviour spheronised graphite into lithium-ion battery-grade, 99.97% carbon PSG using caustic roast purification technique. Renascor’s Battery Anode Material Study adopted caustic roast purification as a more sustainable alternative to producing Purified Spherical Graphite than the hydrofluoric acid method generally used in Chinese PSG operations. PSG is experiencing significant demand growth, with a forecasted annual growth rate of up to 29% per year through 20302. The test results validate Renascor’s plan to be a low-cost supplier of Purified Spherical Graphite in the first integrated in-country mine and battery anode materials operation outside of China. The results will be used to support continuing offtake and finance discussions.
Renascor Resources Ltd is pleased to announce the results of a study assessing an integrated battery anode material operation for lithium-ion battery anodes. The Battery Anode Materlal Study confirms that the integration of a PSG processing operation with Renascor’s Siviour Graphite Project creates significant added value and aligns Renascor with end-users of PSG seeking supply chain security through the world’s first integrated, in-country mine and battery anode material operation outside of China.
