Walkabout Resources Ltd (ASX:WKT) has made sizeable graphite offtake sales in September, obtaining two sales order totalling 800 tonnes of graphite product from its Lindi Jumbo Graphite Project in Tanzania.
More than 60% of the order volume is for coarse flake graphite – as the direct customer, Wogen Group will pay Lindi Jumbo 80% of the assessed final value of these sales, consistent with the Global Sales, Purchase and Marketing agreement between the two companies.
Reliable producer of graphite concentrate
“Starting regular large volume sales is an important milestone and begins to cement Lindi Jumbo as a reliable producer of high-quality graphite concentrate in the minds of end customers,” Walkabout Resources managing director and CEO Andrew Cunningham said.
“Lindi Jumbo remains fully exposed to market prices for its graphite products and therefore will benefit from the forecasted cyclical increase in prices in the coming years.
“We are confident of being able to meet current market demand for our product as we ramp-up towards nameplate capacity and possible excess beyond that.”
Read: Walkabout Resources approaches nameplate capacity at Lindi Jumbo Graphite Project
Walkabout says the prices received for these sale orders were in line with preciously announced sales prices.
Those prices range between US$1,080 to US$1,600 per tonne for coarse flake at 94%-95% total graphitic carbon and US$500 to US$750 per tonne of fine flake at 90%-95% TGC for sales outside of China, with marginally lower prices for those within.
The company expects to receive further sales from similar end customers at a higher frequency as more product becomes available at Lindi – WKT says it is “seeing robust demand for both coarse and fine product produced by Lindi Jumbo”.