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Hexagon Resources pursuing dual strategy to establish cash flow positive graphite business

Hexagon’s recent downstream scoping study to establish a graphite purification and processing plant highlight a compelling business investment case.

graphite
The company’s McIntosh graphite project is funded by Mineral Resources

Hexagon Resources Ltd (ASX:HXG) is pursuing a dual path to achieve its objective of establishing a cash flow positive business in the graphite industry and ultimately control an integrated upstream to downstream business:

• Upstream - focussed around the McIntosh deposits and joint venture, funded by Mineral Resources Ltd (ASX:MIN) for the past 12 months and the recently acquired Alabama mineral claims; and

• Downstream - employing innovative flow sheet and cutting-edge technologies to supply a variety of high-end products into deep, premium priced markets.

Upstream: Hexagon Resources updates McIntosh flake graphite resource; 81% classified as indicated

The current focus of the McIntosh joint venture partners is metallurgical testwork to define a process flowsheet.

Testwork, planned and commissioned by Hexagon, is currently underway in China at a research facility that is highly experienced in a wide spectrum of graphite processing, from initial concentration to downstream purification, micronising and spheroidising.

Subject to the outcomes of this work, the joint venture plans to follow-up with locked-cycle and pilot scale flotation tests to generate process design criteria as part of the feasibility study.

Downstream: Hexagon Resources intends moving to feasibility study for graphite processing plant

Hexagon’s recent downstream scoping study to establish a Graphite Purification and Processing Plant (GPPP) on a standalone basis clearly highlights a compelling business investment case.

Capturing additional, significant margins from further processing of graphite concentrates has always been an important part of the commercialisation strategy and, following the scoping study, represents a significant market opportunity.

Quick facts: Hexagon Resources Ltd

Price: 0.049 AUD

ASX:HXG
Market: ASX
Market Cap: $14.3 m
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