Evolution Energy Minerals

PHIL HOSKINS

MANAGING DIRECTOR

(ASX:EV1)

◾ Company Name: Evolution Energy Minerals ◾ Company ASX code: EV1 ◾ Key commodities: Graphite ◾ Key Personnel: Phil Hoskins, Managing Director | Michael Bourguignon, Executive Director Technical | Amanda van Dyke, Non-Executive Director ◾ Locations: Tanzania ◾ Market Cap as of 15/07/22: $67.98M ◾Share price range over 12 months as of 15/07/22: $0.620 - $0.275 ◾ Company Website: evolutionenergyminerals.com.au

COMPANY PROFILE

Evolution Energy Minerals (ASX:EV1) is a graphite concentrate project, built around its large Chilalo Project in the eastern African nation of Tanzania.

Chilalo is a standout high-grade coarse flake project, where 58% of the resource is highly prized +80 mesh coarse flake graphite; one of the best in the world.

Chilalo currently has a mineral resource of 20.1 million tonnes grading 9.9% total graphitic carbon (TGC) that includes an ore reserve of 9.2Mt at 9.9% TGC, enough to fuel a mine life of 18 years.

It’s not just the size of the project or the grade of the product, but also the purity of its graphite that makes Evolution’s Chilalo Project a star.

In June, the company announced that detailed analysis of impurities in Chilalo’s 95% C flake graphite fines concentrate has identified extremely low levels of naturally occurring molybdenum and boron.

The newly-understood purity of its graphite opens the door for Evolution to get into two value-added markets; Premium performance batteries, which need extremely low concentrations of molybdenum, and nuclear-grade graphite which requires low levels of boron.

Further testwork has shown that fines material can be purified to 99.9995% C and that its coated spherical graphite far exceeds the specifications required for premium anode applications such as EV’s.

“Our pure graphite project will always be a high margin project,” Evolution managing director Phil Hoskins explains. “But beyond that, it’s very important if you want to build a highvalue, large and sustainable business in the graphite space to become vertically integrated into some of the downstream applications.”

The mix of 58% coarse / 42% fine means Chilalo graphite will find a ready market in the battery anode market, and allow Evolution to access the growing expandable graphite market, which includes the traditional uses of foils, seals and polymers as well as for fire retardants.

Evolution recently signed a binding offtake agreement with Yichang Xincheng Graphite Co (YXGC) for the sale of 30,000tpa of coarse flake graphite for a minimum of three years, covering more than 50% of Chilalo’s production for the first three years and represents more than 70% of forecast revenue over the same period.

“The agreement is the culmination of a significant amount of work that we have undertaken with YXGC over many years and is testament to the strong relationship and mutual respect we enjoy with YXGC,” Evolution managing director Phil Hoskins says.

Also high on the company’s list of priorities is its commitment to meeting high Environment, Social and Governance (ESG) standards, and was recently accepted into the European Battery Alliance.

This will allow EV1 to engage with key European stakeholders in the battery anode material market strengthening its battery anode material strategy in Europe.

The operation’s location in Tanzania has, in the past, presented some challenges, however Hoskins says that a recent change in government is set to change things significantly.

“A new president has come in, and she is very receptive to foreign investors,” Hoskins says. “We’ll be signing a framework agreement in August that will give us the fiscal stability we need to bring in further financiers.”

KEY INVESTMENT HIGHLIGHTS

JULY 18, 2022: EV1 reveals exceptional yields and superior electrochemical properties of coated spherical graphite. MAY 9, 2022: Evolution signs a 30,000tpa binding offtake agreement with Yichang Xincheng Graphite Co (YXGC). MARCH 8, 2022: Geophysics investigation highlights potential for multi-decade mine life.