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Edison Issues Initiation on Alabama Graphite (CSPGF)
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Accesswire 10-Jul-2017 8:00 AM
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LONDON, UK / ACCESSWIRE / July 10, 2017 / Alabama Graphite (OTCQB: CSPGF) is seeking to position itself as one of the preferred suppliers of natural, battery-ready graphite to the burgeoning electric vehicle and defense industries of the US. The company's Coosa project is the only graphite project in the contiguous US and has proven its coated spherical purified graphite product to be suitable for use in lithium-ion battery (LiB) manufacturing. Coosa's US location is also aligned with the Trump administration's broad domestic policy to "Buy American".
Coosa's PEA contemplates a two-phased development approach, allowing Alabama to tailor its output to the requirements of prevailing CSPGF graphite market growth rates. This is critical when the size of the electric vehicle market is still relatively minuscule compared to its fossil fuel counterparts. Phase 1 of Coosa's development (starting, pending capital raisings, in FY19) produces 5ktpa, and valuing this cash flow stream results in a fully diluted value of C$0.56/share. Valuing cash flows across the total life of mine (LOM) of 27 years, with Phase 2 developed via internal cash flows, results in a value of C$1.01/share. Both values use a CSPGF price of US$9,000/t, a PMG price of US$2,000/t and a 10% discount rate to reflect general equity risk.
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For more information please contact Edison:
Tom Hayes, +44 (0)20 3077 5725
Charles Gibson, +44 (0)20 3077 5724
mining@edisongroup.com
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SOURCE:Edison