MRC FAST TRACKS ANODE PRODUCTION INTO EUROPEAN BATTERY MARKET WITH SUPERIOR GRAPHITE JOINT VENTURE

•  MRC has entered into an exclusive non-binding MOU to form a 50:50 Joint Venture with Superior Graphite Co. to purify natural flake graphite anode material for LiB battery manufacture at Superior’s existing Sundsvall plant in Sweden
•  The Joint Venture provides MRC with a faster route to vertical integration, greater margin capture, reduced technology risk and capex
•  Superior has the world’s largest continuous graphite thermal purification capacity utilising its proprietary technology
•  Thermal purification is the only current commercially viable large-scale technology, other than chemical processing requiring toxic hydrofluoric acid, utilised within China
•  The Joint Venture would produce, market and supply Sustainable Graphite Anode Material primarily to European battery manufacturers seeking supply ex-China
•  The Joint Venture would have a proposed production capacity of ~15- 20,000tpa of Sustainable Graphite Anode Material
•  Superior Graphite´s existing operation in Sundsvall, Sweden is situated at a port, has key infrastructure in place including existing thermal purification capacity, and has access to low-cost hydro-nuclear renewable energy

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02362932-6A1028133?access_token=83ff96335c2d45a094df02a206a39ff4

DISC: I hold

Ths announcement lifts the Trading Halt of yesterday

Highlights

Higher grades mined from Northern Beaches results in 26% increase in final concentrate production

• Revenue increased 26% (adjusted) reflects increased non-mags sales, higher unit pricing for ilmenite.

• Unit revenue per tonne of final concentrate sold at Tormin up 53.6%

• Production resumed at Skaland

• Mr Christoph Frey appointed as Chief Operating Officer of Graphite and Anode Materials (Europe)*(1)

• COVID-19 – No material impact to Norwegian and South African operations. Supply chain logistics and markets largely unaffected (1) ASX release Appointment of Key Industry Expert– 2 November 2020

*(1) ASX release Appointment of Key Industry Expert– 2 November 2020

Corporate and Cash

Cash: US$5.5 million as at 31 December 2020, plus US$16.4 million in trade and other receivables, including USD$7.5 million received in the first week of January 2021 for December 2020 sales

Debt: Borrowings as at 31 December 2020 of US$6.2 million

Securities: 456.2 million shares and 2.6 million performance rights as at 31 December 2020