Volt Resources Ltd (ASX:VRC, OTC:VLTRF) subsidiary Zavalievsky Graphite (ZG) has begun its second production campaign and has produced about 200 tonnes of graphite with a goal to produce 1,000 tonnes overall from the Ukraine.
The second production campaign for the graphite producer and natural graphite anode developer follows the initial campaign in April/May this year where ZG produced 1,015 tonnes of graphite.
The release of the first production numbers in June came as ZG was named as one of only a few graphite projects in around 50 investment cases to meet European demand for critical and strategic materials.
ZG has been identified as a strategic asset by the European Institute of Innovation & Technology (EIT) and the European Raw Materials Alliance (ERMA).
Read more: Volt Resources subsidiary ZG recognised as a strategic asset by European agencies
Revenue generating
ZG is generating revenue from the graphite produced and as of July 31, 2023, had generated product revenues (excludes Horizon program funding) of about €992,000 or about A$1.7 million.
Note that under the advice from VRC Auditors and under the requirements of IFRS, ZG revenues are not consolidated into Volt’s P&L statement.
Further to this, working capital advanced to ZG is considered an intercompany 'loan' from Volt and the amount is repayable.
Volt spent A$587,000 during the June quarter on exploration and evaluation activities, with a focus on the update of Bunyu’s Stage 1 feasibility study in Tanzania along with tenement management and license expenditure on the Bunyu Graphite Project and the Guinea Gold Projects.
These costs are expected to be lower in the current quarter, as VRC continues to prioritise fiscal discipline.
70% interest in ZG
Volt has a 70% interest in the ZG business in Ukraine. The ZG mine and processing facilities have been in operation since 1934 and are near key markets with significant developments in lithium-ion battery production.
ZG benefits from an existing customer base and graphite product supply chains based on excellent transport infrastructure covering road, rail, river, and sea freight combined with reliable grid power, ample potable groundwater supply and good communications.