NextSource Materials Updates Feasibility Study for Molo Mine

NextSource Materials Inc. has unveiled the findings of an updated feasibility study for the expansion of its Molo Graphite Mine in Madagascar. The Phase 2 expansion aims to boost production to 150,000 tonnes per annum of flake graphite concentrate over a 37-year mine life.

The study estimates expansion costs at $290.8 million, with a pre-tax Net Present Value of $402.5 million and a real pre-tax Internal Rate of Return of 18.5%. The expansion includes constructing three 50,000 tpa processing modules. This modular approach is expected to reduce build time and costs significantly.

Despite positive financial metrics, a production decision has not been finalized. The company is in discussions with potential partners to determine the appropriate timeline for the expansion.