• 3 min read • Author: Fabian Dawson • Print • Privacy & Disclaimer

Falcon Energy soars higher with its graphite mine-to-market strategy

Falcon is nearing its goal of becoming a fully integrated provider of battery anode materials, to address critical graphite shortages in the European and North American lithium-ion and fuel cell markets.

Disseminated on behalf of Falcon Energy Materials plc.

Falcon Energy Materials plc (TSX-V: FLCN) has just released its Preliminary Economic Assessment (PEA) for an Anode Plant in Morocco, marking a significant milestone in the company’s mine-to-market strategy. Together with its graphite property in West Africa, Falcon is now closer to becoming a fully integrated source of battery anode material to supply the European and North American lithium-ion and fuel cell markets, which are facing critical shortages of graphite. The natural graphite anode material market is expected to reach US$3.6 billion by 2029, exhibiting a CAGR of 18.6% by 2029, states a new report by Business Research Insights.

  • Falcon’s Lola Graphite Project in the Republic of Guinea in West Africa has proven and probable reserves of 42 million tonnes of graphite at a grade of 4.2% Cg.
  • Falcon’s proposed graphite processing plant, in partnership with Hensen Graphite & Carbon Corporation, has the potential to generate $1.149 billion in lifetime value.
  • Based on current market prices, Falcon’s Anode Plant is projected to generate around $246 million in annual revenue and $152 million in operating cash flow.

With its flagship Lola Graphite Project in Guinea, Falcon is securing a strong, independent supply of high-quality, battery-grade graphite. The company’s strategic partnership with Hensen Graphite & Carbon Corporation to build an advanced anode production facility in Morocco enhances its role as a dependable, diversified graphite supplier for Western markets, helping to mitigate supply chain risks and meet growing demand in the electric vehicle and energy storage sectors. 

The company has completed its 2023 updated feasibility study on Lola, which envisages the construction of a mine and concentrator with a target capacity of 94,000 tonnes per annum of graphite concentrate. The Company has received a turn-key proposal from Shandong Xinhai Mining Technology & Equipment Inc. for the development of the Lola Graphite Project.

Falcon and Hensen have now commenced work on a NI 43-101 compliant feasibility study on its planned Anode plant in Morocco, which is expected to be completed in the first half of 2025. 

“The Chinese are 15 years ahead when it comes to the Lithium-ion battery development supply chain and so we have actively chosen to partner with the Chinese to demonstrate that we can be cost competitive, that we can produce the right quality and that we can do it at scale… Falcon’s strategy and structure are truly unique and cannot be replicated by anyone in the short to medium term. The very complicated nature of the CSPG (Coated Spherical Purified Graphite) supply chain, which is almost entirely dominated by China, makes our Chinese partnerships a critical pathway to success,”
- Matthieu Bos, Chief Executive Officer of Falcon.

Company at a Glance

TSXV: FLCN

After the name change from SRG Mining Inc. to Falcon Energy Materials on July 31, 2024, the stock price and market cap experienced a positive rerating. This can be attributed to the strategic decision to redomicile from Canada to the Abu Dhabi Global Market jurisdiction in the United Arab Emirates (UAB). This move expanded the options for strategic partnerships and financing discussions, attracting new investors. After some price consolidation over the past few months, Falcon Energy saw another price lift last week due to a robust PEA with solid economics. This recent rerating has been immediate due to, in large part, having a tight float and large strategic investors making up the ownership. 

đź’°
$103M
Market Cap
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$0.87
PriceÂą
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$0.65
Picked²
  1. As of market open on Tuedsay November 14, 2024
  2. As of market open on Monday September 30, 2024 after being selected as a Top Pick at the CEM Muskoka Capital Event*
  3. SRG Mining Inc. name changed to Falcon Energy Materials PLC on July 31, 2024

Why Falcon for the Green Energy Investor?

As demand for electric vehicles (EVs) and renewable energy storage surges globally, graphite has become indispensable for lithium-ion batteries and advanced energy storage technologies.

However, the heavy reliance on traditional graphite sources, largely concentrated in China, has exposed the supply chain to risks from geopolitical disputes and trade tariffs.

According to Project Blue, a consultancy that provides market intelligence on critical materials for energy transition, the global graphite shortage is expected to intensify in the coming years with a supply deficit reaching 777,000 tonnes by 2030.

To meet the soaring demand, Benchmark Mineral Intelligence (BMI) estimates that $12 billion in investment in graphite production is required by 2030, along with the development of 97 new mines by 2035.

Currently, China dominates the graphite market, producing over 60% of the world's natural graphite and an overwhelming 98% of the processed material essential for EV and renewable energy storage batteries.

Falcon’s integrated approach to graphite production, strategic partnerships, and geographic diversification positions it well to capitalize on opportunities arising from supply chain limitations and new tariff implementations, anticipated under a second Donald Trump administration in the U.S.

Further reading

Falcon Announces Positive Results of Preliminary Economic Assessment for Morocco Anode Plant

Strategic Technical Partnership with Hensen to Advance Anode Plant in Morocco

Falcon’s Investor Presentation

IR Contact info:

m.johnston@falconem.net
+1 (604) 443-3835

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