TORONTO, Sept. 14,
2023 /CNW/ - Black Swan Graphene Inc. ("Black
Swan") (or the "Company") (TSXV: SWAN) (OTCQB: BSWGF)
(Frankfurt: R96) is pleased to announce the results of the scoping
study for its large scale Québec facility (the "Scoping
Study"). Developed in collaboration with Toronto-based engineering firm Halyard Inc.
("Halyard"), this Scoping Study marks a significant step
forward for Black Swan's growth strategy.
The Scoping Study provides an initial evaluation, including
processing plant specifications as well as conceptual mechanical,
civil, structural, and electrical designs, for its proposed 40,000
square-foot first large-scale production facility, based on the
same processing technology currently being used in the facility
located in the United Kingdom. The
annual production and self-sustaining ramp up of its industry-ready
products have been established by taking into consideration
customers and distributors' expected demand, as well as strategic
partnerships, including the partnerships with Nationwide
Engineering Research & Development ("NERD") and the Arup
Group ("Arup"). The Scoping Study also established capital
and operating cost estimates, as well as financial analysis based
on its strategy to build such facility in Québec, Canada, where the Company aims to leverage the
emergence of a world class graphite industry as a raw material
source and the province's low-cost renewable hydroelectricity.
While the initial capacity target stands at 9,868 tonnes per annum
in accordance with the Company's initial strategy, expansion beyond
this figure will be driven by market dynamics and raw material
access.
It is worth emphasizing that, due to the modularity of Black
Swan's patent-protected technology for large scale production, the
Company is well positioned to also offer a licensing
"at-the-point-of-use" model, which would further accelerate the
adoption of its graphene products, particularly in the concrete
industry.
Scoping Study
Results Highlights
|
Pre-Tax
|
Post-Tax
|
Net Present Value
(7%)
|
C$ 1.01 B
|
C$ 738 M
|
Internal Rate of
Return (IRR)
|
54 %
|
47 %
|
Payback
Period
|
3.8 years
|
4.2 years
|
Average Annual
Production
|
8,200 tonnes
|
Average Production
Costs
|
C$
2.80 / Kg
|
Weighted Average
Selling Price
|
C$17.00 / Kg
|
Average Annual
Operating Cash Flow
|
C$ 87.3
M
|
Average Annual Free
Cash Flow
|
C$ 85.0
M
|
Average Annual
Operating Cash Flow (year 1 to 10)
|
C$ 67.7
M
|
Average Annual Free
Cash Flow (year 1 to 10)
|
C$ 62.3
M
|
Direct Pre-Production
CAPEX
|
C$ 25.5
M
|
Indirect
Pre-Production CAPEX
|
C$ 8.9
M
|
Pre-Production Capex
Contingency (23%)
|
C$ 10.4
M
|
Total
Pre-Production CAPEX
|
C$ 44.8
M
|
Operational Highlights
|
Projected construction
period: 18 months
|
Project life: 25
years
|
Size of facility:
40,000 square feet
|
Maximal projected
production: 9,868 tonnes per annum
|
Annual revenue
estimate at maximal production rate: C$167.5 million
|
Average operating
margin: 81%
|
Average production
costs include cost of graphite concentrate
|
Simon Marcotte, President and Chief Executive Officer of
Black Swan, commented: "We are incredibly pleased with the
outstanding outcomes of the Scoping Study, marking a significant
milestone towards establishing Black Swan as a global leader in
graphene production. Over the past year since going public, our
team has been actively engaged in all facets of this study,
collaborating closely with Halyard and potential clients and
distributors. These results provide the bedrock to effectively
construct and operate the project, and we hold firm confidence in
their feasibility and attainability from both operational and
commercial perspectives. Furthermore, the conclusion of the study
aligns seamlessly with the initial estimates established in
partnership with Thomas Swan &
Co. Ltd., prior to the inception of Black Swan Graphene,
underscoring the caliber of the partnership."
The sale price assumptions used in the Scoping Study are in line
with the Company's inflation adjusted original strategy and
represent long term prices, but the Company remains confident that
higher prices will be realized as customers value the suitability
of the product derived from collaborative product development
efforts. With these new products and additives, customers gain the
opportunity to explore new markets and develop their own innovative
products at a minimal variation in overall costs. Black Swan
continues to anticipate that the availability of such low-cost and
high-performance graphene products will fuel the adoption across
volume-driven industries.
Black Swan cautions that the Scoping Study does not constitute a
scoping study within the definition employed by the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM"), as it
relates to a standalone production facility and does not concern a
mineral project. Therefore, disclosure standards prescribed by
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101") are not in the scoping study. Any references
to scoping study, prefeasibility study or feasibility study by
Black Swan Graphene Inc., in relation to our refined graphite
starting material, are not the same as terms defined by the CIM
Definition Standards and used in NI 43-101.
About Halyard
Inc.
Halyard is a Toronto based,
carbon neutral engineering firm typically serving the mineral
processing, material handling, infrastructure, and water treatment
industries. The firm provides a range of project personnel,
including multidisciplinary engineers, project managers, designers,
and project support experts to deliver innovative and sustainable
engineering designs.
Halyard's key qualifications include depth of expertise with
significant experience producing all levels of studies and
executing both greenfield and complex brownfield projects; the
ability to deliver fast-track execution schedules with a
significant and successful record of project delivery; an extensive
small scale and fast track modular plant design and implementation
record; as well as a strong commitment to environmental
sustainability and prioritization of effective low-impact
solutions.
About Black Swan Graphene
Inc.
Black Swan is focused on the large-scale production and
commercialization of patented high-performance and low-cost
graphene products aimed at several industrial sectors, including
concrete, polymers, Li-ion batteries, and others, which are
expected to require large volumes of graphene. Black Swan aims to
leverage the low cost and green hydroelectricity of the province of
Québec as well as the proximity of the province's emerging graphite
industry in order to establish an integrated supply chain, reduce
overall costs, and accelerate the deployment of graphene usage. On
March 27, 2023, Black Swan,
Nationwide Engineering Research and Development Ltd. ("NERD") and
Arup Group Limited ("Arup") announced strategic partnerships,
establishing a fully integrated supply chain and providing a
turnkey solution for the construction and concrete industries. Arup
is a multinational engineering consultancy headquartered in
London, United Kingdom, with
18,000 experts working across 140 countries. Black Swan's graphene
processing technology was developed by Thomas Swan & Co. Ltd ("Thomas Swan") over
the last decade. Thomas Swan is a
United Kingdom-based global
chemicals manufacturer, with a century-long track record and has
been at the forefront of graphene innovation.
For more information, please visit:
www.blackswangraphene.com
Black Swan Graphene Inc. on behalf of the Board of
Directors
Simon Marcotte,
CFA, President & Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-Looking
Information
The information contained herein contains "forward-looking
statements" within the meaning of applicable securities
legislation. Forward-looking statements relate to information that
is based on assumptions of management, forecasts of future results,
and estimates of amounts not yet determinable. Any statements that
express predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not
statements of historical fact and may be "forward-looking
statements." Forward-looking statements are subject to a variety of
risks and uncertainties which could cause actual events or results
to differ from those reflected in the forward-looking statements,
including, without limitation: risks related to the TSXV listing,
risk related to the failure to obtain adequate financing on a
timely basis and on acceptable terms; risks related to the outcome
of legal proceedings; political and regulatory risks associated
with the industry; risks related to the maintenance of stock
exchange listings; risks related to environmental regulation and
liability; the potential for delays in development activities or
the completion of feasibility studies; the uncertainty of
profitability; risks related to the inherent uncertainty of
production and cost estimates and the potential for unexpected
costs and expenses; results of feasibility studies, and the
possibility that future results will not be consistent with the
Company's expectations; risks related to commodity prices
fluctuations; and other risks and uncertainties related to the
Company's prospects, properties and business detailed elsewhere in
the Company's disclosure record. Should one or more of these risks
and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward-looking statements. Furthermore, performance
results of graphene products as additives can vary widely depending
on type and the specificity of the target material, the specifics
of the graphene product itself, including but not limited to,
carbon purity, particle size, surface agent, dispersion behavior,
and application and usage methods. Investors are cautioned against
attributing undue certainty to forward-looking statements and
initial test results. These forward-looking statements and test
results are made as of the date hereof and the Company does not
assume any obligation to update or revise them to reflect new
events or circumstances, except in accordance with applicable
securities laws. Actual events or results could differ materially
from the Company's expectations or projections.
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SOURCE Black Swan Graphene Inc