- Graphite company, EcoGraf (EGR) has put measures in place to save costs during the COVID-19 pandemic
- Non-Executive Directors have agreed to waive their fees
- In addition, the Managing Director, Executive Director and other management will see a 50 per cent pay cut
- EcoGraf has also reduced all non-essential project development expenditure in Tanzania to focus on progressing towards finalising US$60 million loan
- This hefty loan is for the development of a graphite mine in Tanzania
- The company is also in discussions to secure further financing for a graphite facility in WA
- EcoGraf is up 50 per cent and shares are trading for 4.5 cents each
Graphite company, EcoGraf (EGR) has put measures in place to save costs during the COVID-19 pandemic.
EcoGraf is building a business to produce high purity graphite for the lithium-ion battery market.
Cost Saving Measures
Effective immediately, Non-Executive Directors have agreed to waive their fees. The Managing Director, Executive Director and Management salaries are getting 50 per cent pay cuts.
Since the start of the year, EcoGraf has reduced all non-essential project development expenditure in Tanzania as it is focusing on progressing its US$60 million (approx. A$99 million) bank debt.
The company says these measures align with its plan to build a successful graphite business and become a major supplier of graphite products.
Kwinana Battery Graphite Facility
EcoGraf says there has been a significant interest for its planned production facility in Western Australia. This aligns with the increasing global demand for renewable energy.
The company’s key focus is finalising the funding arrangements for the new development. The Export Finance Australia has confirmed it will consider a debt finance for the new US$72 million (approx. A$118 million) development.
Two weeks ago, EcoGraf submitted a US$60 million financing proposal to the Government of Tanzania for the construction of the new Epanko Graphite Mine.
The proposal was developed with KfW IPEX-Bank, aiming to simplify and fast-track the entire debt financing process in Tanzania.
Epanko is expecting to provide intergenerational benefits for the regional community and will directly contribute US$2 billion (approx. A$3.3 billion) to Tanzania.
EcoGraf is up 50 per cent and trading for 4.5¢ per share at 12:51 pm AEDT.