- Graphite producer Renascor Resources (RNU) reports it is forging ahead with its work projects even amid pandemic restrictions
- The company’s Siviour purified spherical graphite (PSG) project is planned to meet key milestones over the next 12 months
- The company’s goal is to supply battery-grade PSG for use in lithium-ion battery anodes via a vertically integrated, mining-to-manufacturing model
- The company is working to provide prospective offtake partners with PSG from Siviour’s graphite concentrates
- Cost-cutting measures and other efficiencies are in place to guarantee RNU’s ongoing viability and entry to market after COVID-19
- Renascor Resources traded up and back down again throughout Thursday’s session to close where it started at a price of 0.7 cents a share
Graphite producer Renascor Resources (RNU) reports it is forging ahead with its work projects even amid pandemic restrictions.
A work in progress
Renascor’s Siviour purified spherical graphite (PSG) project is planned to meet key milestones over the next 12 months. So far, only minimal disruptions have been felt due to the COVID-19 pandemic, and Renacsor anticipates being able to fund the Siviour works without need for extra financial support or fundraising.
The company’s ultimate goal is to produce and supply battery-grade PSG for use in lithium-ion battery anodes via a vertically integrated, mining-to-manufacturing model. Natural flake PSG is currently only available in commercial quantities from downstream manufacturers in China. Renascor plans to change that by producing an alternative, secure supply of battery-grade PSG to potential offtake partners across northeast Asia and Europe.
While pandemic-related travel restrictions are in place, some site works and other due diligence activities at Siviour have been limited. But since the delivery of the definitive feasibility study (DFS) in November last year, discussions have been ongoing with potential offtake and finance partners in Northeast Asia, North America and Europe.
Renascor’s laboratory and administrative work continues largely unabated amid the crisis. An advanced study into the company’s plans to vertically integrate its PSG production process is ongoing, with plans to integrate it into the existing DFS.
The company is also working to provide prospective offtake partners with PSG from Siviour’s graphite concentrates. Renascor further plans to conduct mineral processing tests to confirm and optimise the production parameters adopted for producing both graphite concentrates and PSG.
The company believes it is in a solid position to keep hitting its milestone targets over the next 12 months.
Between corporate cost reductions – including a 35 per cent reduction in cash payments to directors and executives – and Renascor’s strong cash position of $2.1 million in reserves and no debt, the company can continue its work for the foreseeable future.
All work that can be done within pandemic restriction parameters – such as lab testing and administration – will be expedited so there are as few obstacles as possible when the resumption of normal travel and work protocols allow for currently compromised activities to continue.
Renascor Managing Director David Christensen says the company is committed to the safety and prosperity of its staff and shareholders.
“Our actions in response to COVID-19 are focused on the health and well-being of
our staff and the communities in which we work. We are also committed to
maximising shareholder value during this period of uncertainty.
“By prudently managing our operations, we expect to continue to progress the development of Siviour in anticipation of continued interest in high-quality renewable energy projects when the COVID-19 crisis is contained.”Renascor Managing Director David Christensen
“Given Siviour’s many comparative advantages, including its low projected operating cost and its favourable location in an industrialised, low risk jurisdiction, we believe Siviour is well placed to being at the front of the line in providing new graphite supply to the lithium-ion sector post COVID-19,” he stated.
Renascor Resources traded up and back down again throughout Thursday’s session to close where it started at a price of 0.7 cents a share.