Okanjande Graphite Project PEA: $65M NPV, 62% IRR
Northern Graphite Corporation's Okanjande Graphite Project in Namibia has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $65M, an after-tax IRR of 62%, and initial capital of $15M. The mine plan runs 10 years at about 31877 t/a graphite concentrate per year.
Northern Graphite Corporation's Okanjande Graphite Project has reported Preliminary Economic Assessment (PEA) results for the graphite project in Namibia. The study headlines an after-tax net present value of $65M at a 8% discount rate. It reflects Northern Graphite Corporation's (NGC.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $65M using a 8% discount rate. After-tax IRR is 62%. Initial capital expenditure is estimated at $15M, with life-of-mine sustaining capital of $1M. The study models a payback period of 2 years. All-in sustaining costs are pegged at 775.22 USD/t concentrate. Economics are based on Graphite Flake Price USD 1,500.00/t TCG (base case); resource cut-off based on USD 1,250/t TGC.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 10 years. Average annual production is approximately 31877 t/a graphite concentrate. Average head grade is 5.27% TGC (average mineralized material). Metallurgical recovery averages 92%.
These figures are extracted from Northern Graphite Corporation's technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 1.7 Mt | 4.66% TGC | 80 kilo tonnes |
| Indicated | 4.2 Mt | 4.03% TGC | 168 kilo tonnes |
| Subtotal (Weathered M&I) | 5.9 Mt | 4.21% TGC | 248 kilo tonnes |
| Inferred | 0.5 Mt | 3.45% TGC | 17 kilo tonnes |
| Measured | 0.2 Mt | 5.42% TGC | 13 kilo tonnes |
| Indicated | 1.0 Mt | 4.08% TGC | 40 kilo tonnes |
| Subtotal (Transitional) | 1.2 Mt | 4.35% TGC | 53 kilo tonnes |
| Inferred | 0.1 Mt | 3.20% TGC | 2 kilo tonnes |
| Measured | 7.1 Mt | 5.86% TGC | 419 kilo tonnes |
| Indicated | 17.0 Mt | 5.10% TGC | 868 kilo tonnes |
| Subtotal (Fresh M&I) | 24.2 Mt | 5.33% TGC | 1,287 kilo tonnes |
| Inferred | 7.2 Mt | 5.02% TGC | 359 kilo tonnes |
Our Analysis
- IRR after-tax
- 62%
higher than 100% of 14 projects we track
- NPV after-tax
- $65M
higher than 0% of 14 projects we track
- Initial capex
- $15M
23% of NPV
costlier than 0% of 16 projects we track
- Payback
- 2yrs
slower than 0% of 11 projects we track
- Mine life
- 10yrs
- Discount rate
- 8%
- Study price assumption
- Graphite Flake Price USD 1,500.00/t TCG (base case); resource cut-off based on USD 1,250/t TGC
The cheque is the story. This company carries a US$10M market capitalisation and proposes to spend US$15M building the asset, so the initial capex is roughly 1.6x the value of the entire business. That is the sharpest fact in the file: no nano-cap quietly funds a build larger than itself. The realistic routes are a dilutive equity raise, a partner or offtake-linked financing, debt against a PEA-stage asset (unlikely on its own), or some combination. Each path either hands a large slice of the project to new money or leans on a partner who will want terms. Existing holders should read the 62% after-tax IRR as the prize that attracts that capital, not as a return they are certain to keep.
The economics themselves are genuinely strong on paper. The 62% after-tax IRR ranks above every one of the 14 graphite projects we track, and the two-year payback sits ahead of all 11 peers with disclosed paybacks. Capex at 23% of NPV is capital-light relative to the 16 graphite projects we track, and the US$65M after-tax NPV is roughly 6.7x the market cap. That gap cuts both ways: it can mean the asset is unrecognised, or that the market is discounting financing, dilution, permitting and execution at this scale. The NPV also ranks above none of the 14 peers, so the headline value is mid-pack even as the percentage returns lead.
Two caveats temper all of it. This is a scoping-level PEA, which may rest on inferred resources and carries a capital estimate with a plus or minus 50% band, so the US$15M build cost could move materially in either direction. The study assumes a US$1,500/t flake price, with the resource cut-off at US$1,250/t; those are the study's own inputs, and the returns are sensitive to whether that pricing holds. Namibia is a settled mining jurisdiction, which helps. The question that decides this: can a US$10M company fund a US$15M build without handing away the project?
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.