Quarterly Activities Report to 30 September 2023

Key Highlights

BUNYU STAGE 1 REVISED FEASIBILITY STUDY COMPLETED

-          Stage 1 Feasibility Study Update delivered highly favourable NPV, IRR, and Payback Period, with new values representing significant improvements relative to the metrics of the 2018 feasibility study, including Pre-tax NPV 7.5% of US$58.9M, Pre-tax IRR of 31.5%, Payback period (before tax) of 2.9 years.

-          Key objectives of Stage 1 development are to establish Bunyu Graphite Project as a world-class supplier of graphite products, grow Volt’s existing natural flake graphite business, provide cashflow, and establish infrastructure in support of the development of the significantly larger Stage 2 expansion project.

-          Stage 1 is based on a mining and processing plant throughput rate of 400 ktpa of ore to produce on average 24,780 tpa of graphite products, positioning Volt as a dominant participant in the global flake graphite market.

-          The mine life for Stage 1 increased from 7.1 to 13.7 years, with an average FOB operating cost of US$670 per tonne.  Total EBITDA of US$169.6M over the 13.7-year Stage 1 project period, with an average annual EBITDA of US$12.4M.  Despite cost inflation and rising interest rates, we have been able to keep capital and operating costs under control.

-          Financing discussions for Bunyu continue with multiple partners.

SUCCESSFUL START OF SECOND PRODUCTION CAMPAIGN AT ZG

-          ZG team successfully started the second production campaign and has produced about 400 tonnes with a goal to produce 1,000 tonnes of graphite.

-          For the period 1 January to 30 September 2023, ZG generated revenue of €1,168k excluding Horizon grant.

VOLT ANNOUNCED ROBUST NON DILUTIVE FUNDING PIPELINE

-          In August 2023, the US Department of Energy released a Notice of Intent to award about USD 3.5 billion in grants for commercial scale battery and battery material plants.  Volt has assembled a competent multi-company team, has collected performance data on our natural graphite anode, and plans to submit a proposal requesting more than USD 50 million for our US based natural graphite anode plant.  Based on work done to-date, Volt is confident of winning the grant.

-          The likely location for this plant is a 33-acre site in Southeast US with the planned capacity of 7,500 tpa natural graphite anode.

-          Total non-dilutive funding pipeline stands at about AUD 100 million.

31 October 2023 -  Graphite producer and natural graphite anode developer Volt Resources Limited (ASX: VRC) (“Volt” or the “Company”) is pleased to report on the Company’s activities for the quarter ended 30 September 2023.

Volt’s Managing Director and Chief Executive Officer, Prashant Chintawar, commented:

“Despite headwinds in the graphite price, I am pleased to inform shareholders that Your Company continued to make progress on various fronts including revenue growth at ZG.  Importantly, in August 2023 we published the revised Bunyu Stage 1 Feasibility Study with dramatically improved project economics compared to 2018.  Second production campaign also started at ZG and progress continued on downstream activities”.

“China’s recent announcement of export curbs on graphite products has reinforced our strategy of becoming an integrated natural graphite anode (specialty chemical) producer for North American and European markets.  We are and must remain focused on speedy execution while maintaining fiscal discipline”.

Link to entire English original news:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02733363-6A1177836?access_token=83ff96335c2d45a094df02a206a39ff4

Other Activities

Exploration and Development Activities

The Company did not undertake any substantive mineral exploration, mine development or mining production activities during the quarter at the Guinea gold projects.

Corporate

Cash Position and Summary of Expenditure Incurred on Exploration Activities

The Company ended the September 2023 quarter with $1.129 million in cash.  Volt continues to manage costs within the group of companies, with continued cost reductions in the operating activities.  Further details as to the use of funds during the quarter can be found within the Appendix 5B – Quarterly Cashflow Report

The Company spent $905,000 on exploration and evaluation activities during the quarter predominantly on the Tanzanian Bunyu’s asset, where graphite samples are being produced for customer evaluation.

Investments during the quarter totaled $89,000, which included corporate support of Zavalievsky Graphite such as management fees and statutory reporting requirements.

Related Party Payments

During the quarter, payments to related parties totaled $179,000 comprising executive director fees, non-executive director fees, and consulting charges.

Mineral Tenements

The schedule of the Company’s interest in mining tenements on 30 September 2023 is as follows

All tenements within Tanzania are held by Volt Graphite Tanzania Plc, a wholly owned subsidiary of Volt Resources Ltd.  Tenements in Guinea are held by two subsidiary companies, KB Gold SARLU and Novo Mines SARLU.

The Company is not a party to any farm-in or farm-out agreements.

This announcement was authorised for release by the Board of Volt Resources Ltd.

Contacts

For further information, please contact:

Prashant Chintawar

MD CEO

Email: [email protected]

Alex Cowie

Investor Relations

Email: [email protected]

Follow us on Linkedin and Twitter

About Volt Resources Limited

Volt Resources Limited (“Volt”) is critical minerals and battery material company listed on the Australian Stock Exchange under the ASX code VRC.  We are an established graphite producer and an emerging natural graphite anode (a key component of lithium-ion batteries) manufacturer.  Volt has a 70% interest in the Zavalievsky Graphite (ZG) business in Ukraine.  The ZG mine and processing facilities have been in operation since 1934 and are near key markets with significant developments in lithium-ion battery production.  ZG benefits from an existing customer base and graphite product supply chains based on excellent transport infrastructure covering road, rail, river, and sea freight combined with reliable grid power, ample potable ground water supply and good communications1[[1]].  

Volt acquired three licence applications that are prospective for lithium-borate mineralisation.  The licence applications are in respect to a total area of 291km2, located in Serbia and are west and south-west of the Serbian capital, Belgrade[[]2].

Volt is progressing the development of its large wholly owned Bunyu Graphite Project in Tanzania.  The Bunyu Graphite Project is ideally located near to critical infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara 140km from the Project.  In August 2023, Volt reported the completion of the revised Feasibility Study (“FS”) for Stage 1 development of the Bunyu Graphite Project.  The Stage 1 development is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 24,780 tpa of graphite products[[3]].  Key objectives of Stage 1 development are to establish Bunyu Graphite Project as a world-class supplier of graphite products, grow Volt’s existing natural flake graphite business, provide cashflow, and establish infrastructure in support of the development of the significantly larger Stage 2 expansion project.

Link to entire English original news:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02733363-6A1177836?access_token=83ff96335c2d45a094df02a206a39ff4

[[1]] Refer to Volt’s ASX announcements titled “Volt to Acquire European Graphite Business following Completion of Due Diligence” dated 14 May 2021 and “Completion of the ZG Group Transaction Following Execution of New Convertible Securities Facility” dated 26 July 2021.

[[][2] Refer to Volt’s ASX announcement titled “Strategic European Lithium Acquisition – Jadar North” dated 18 November 2021.

[[3]] Refer to Volt’s ASX announcement titled “Feasibility Study Update for Bunyu Graphite Project Stage 1, Tanzania, delivers significantly improved economics” dated 14 August 2023. The Company confirms that it is not aware of any new information or data that materially affects the information included in this document and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.