Beowulf Mining, through its Finnish subsidiary Grafintec Oy, has successfully completed the Pre-Feasibility Study (PFS) for its Graphite Anode Materials Plant (GAMP), unveiling promising economic prospects. The study confirms GAMP's capability as a low-cost, high-margin producer of anode materials for the European lithium-ion battery market.

The PFS highlights an initial production phase of 25,000 tonnes of Coated Spherical Purified Graphite (CSPG) annually, scaling to 75,000 tonnes in Phase 2. This phased approach is supported by Finland's renewable energy resources and skilled workforce, providing a strategic advantage in the European market.

With a post-tax Net Present Value (NPV8) of €924 million and an Internal Rate of Return (IRR) of 37% over 25 years, the project demonstrates robust financial metrics. The initial capital cost of €225 million offers a swift pay-back period of three years, generating substantial free cash flow and EBITDA at full production.

Grafintec's innovative process reduces environmental impact by utilizing readily available reagents and recycling, achieving a competitive operational cost of €2,381 per tonne. Additionally, Grafintec's extensive graphite resources at Aitolampi provide a secure feedstock source, enhancing EU's supply chain resilience.

Given the strategic importance of battery-grade graphite, Grafintec is pursuing strategic project status to access public support and funding opportunities. The favorable PFS results position Beowulf Mining as a significant contributor to the European battery materials supply chain.

From an investment perspective, Beowulf Mining's strong growth potential, strategic positioning, and environmental responsibility make it an attractive investment. Therefore, the recommendation is to buy Beowulf Mining shares as the company is well-poised for future growth and market demand.