DFS due in early 2023 - EV1 pursuing improved project economics

This morning our 2021 Wise-Owl Pick Of The Year Evolution Energy Minerals (ASX: EV1) set a deadline for its updated Definitive Feasibility Study (DFS).

EV1 confirmed that the updated DFS would now be released in early 2023 and that it would confirm its graphite project “as a high-margin project, that is well positioned to secure finance for development”.

The market never likes it when timelines get pushed back for key bits of news like a DFS but EV1 put out a good explainer as to why the study was delayed.

EV1 confirmed that the delays were because the company had “changed the design of its mine to remove a tailings storage facility” and instead pursue a strategy of dry stacking its tailings.

This is basically an improvement in the way any mining waste is handled - reducing costs associated with earthworks and sustaining capital expenditure while also improving the ESG credentials of EV1’s project.

In today’s announcement EV1 explicitly stated that it expects this change to “deliver improved project economics”.

While we initially expected the DFS to be delivered before the end of the year we like EV1’s approach of optimising the mine design so that the DFS will show as strong a project Net Present Value (NPV) as possible.

After all, the DFS will be the primary document financiers refer to when looking to provide financing for EV1’s project.

What’s next for EV1?

We are still waiting on EV1 to complete its drilling program and we want to see the signing of a Framework Agreement with the Government of Tanzania which will provide its project with regulatory certainty.