Industry: Mining Region: Russia Transaction price: $1 million Transaction method: equity investment
Optimization of amorphous ink production
Prerequisites:
● Largest amorphous graphite deposit in the Russian Federation (96.7 million tons)
● High quality ore (carbon content up to 85%)
● The Russian Federation's only natural graphite production
● Global market growth potential - 7% per annum through 2025
Upgrade scheme:
1. Up to 15,000 tons per year.
Graphite containing 85-92% carbon and 0.3-0.5% sulfur.
2. Up to 46,000 tons per year.
Graphite containing 99 +% carbon and 0.1 % sulfur.
Status:
● License to produce graphite ore
● Legal production
● Modernization plan to assess international customers and demand
(Over 40,000 tons per year, sulfur content reduced to 0.1 %)
Major consumers:
Magnitogorsk Steel Works, EVRAZ Nizhnitagil Steel Works, EVRAZ West Siberian Steel Works, Uralati, TH Kolad
Investment objectives: construction and installation, equipment, working capital
Investment advice: Plan to invest 44 million roubles from the company in exchange for shares.
Investor yield (IRR) :24.2%
Payback period (PB) :5.7 years
Investment period :5 years
The total project cost is 44 million to 184 million rubles
Net present value of 264 million yuan
Warranties and guarantees:
● External valuation of 100% of the company's shares at a market value of 532 million roubles.
● Graphite ore reserves of 920,000 tons, the market value of 682 million roubles.
● AN area of 4.8 hectares in the city of Krasnoyarsk with a market value of 36 million roubles.