Given that the deposit is also so close to surface with an average forecast strip ratio of 0.2:1, the modelling has confirmed that the project will be an extremely low-cost exercise, revealing that it could produce 50,000 tonnes per annum for a capital outlay of just $95 million.

By using the cashflow for the initial staged production, the company may eventually push for three additional stages of development for an extra $433 million in capital expenditure, which could ultimately drive the project’s net present value (NPV) to as high as $787 million.

Sarytogan has continued its exploration efforts at Bainazar, a project 20km west of its graphite deposit where it is exploring for copper porphyry mineralisation and results are expected soon. The company is also working to complete a $5 million equity placement from the European Bank for Reconstruction and Development, with the first tranche of $2.5 million set to be received next month and the second in December.

Even though the Saytogan graphite deposit was first discovered at site in the 1980s during the Soviet era, it wasn’t until 2018 after graphite – which is mainly used as an anode material in lithium-ion batteries – had been added to the critical metal list in Europe and Japan that the company secured the permit to explore the area and subsequently release a mineral resource last year.

Sitting equidistant to China and Europe, both huge consumers of graphite, gives Sarytogan a distinct advantage over other hopeful producers to be able to generate competitive demand for its end product. Coupled with the fact that the company is also looking at producing several products of varying purity and has a low-cost source of high-grade graphite, Sarytogan appears well-positioned to capitalise.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au