2020 has so far been a very daunting period fraught with lots of uncertainty. Through this email, I am pleased to summarize the very positive developments for Ceylon Graphite, achieved despite the global pandemic. The short version is that Ceylon Graphite has hit a number of important milestones and is well positioned to grow shareholder value as demand growth for graphite as a main component of lithium ion batteries continues at a dizzying pace.
- The Decarbonization of the energy storage and transportation sectors has taken off gaining globally. Graphite is frequently referred to by analysts and media as the “new oil”.
- Demand for natural graphite has hit its strong growth phase to support the manufacturing of energy storage equipment/high quality batteries/lubricants and refractories.
- Ceylon Graphite has some of the purest natural graphite available and is building some of the cheapest and quickest-to-market natural graphite facilities.
- K1 site has declared commercial production.
- The company’s first commercial sales – to Singapore and South Korea – have already been achieved.
- The company is rapidly expanding its capabilities – the M1 site will apply for Industrial Mining License Category A shortly.
- Product from both sites has been certified as battery grade marketable by US and German laboratories.
- H1 shaft work resumes.
- Sri Lanka instituted strict COVID -19 restrictions Mid-March through Mid-June.
- Ceylon Graphite mine sites instituted strict COVID policies and we are happy to say not a single COVID 19 case registered on site.
Most importantly Ceylon Graphite has a firm commitment from a consortium of international investors to invest C$ 8.1 million in the Company to develop new sites and fund the company’s plans to start upgrading its natural graphite.
In these uncertain times, this is a significant investment and will allow the Company to focus solely on the production and sale of Graphite. This transaction is slated to close in the immediate future.
The Board and Management of Ceylon Graphite are very happy with the progress made thus far in 2020 and look forward to announcing new milestones in the near future.
Best and stay safe.