Date of Initial Coverage
Initial Entry Price
Returns from Initial Entry
EV1 will achieve first production of the world’s most sustainably produced graphite by early 2024 (including value adding processing) coinciding with the onset of a long-term supply shortage in the graphite market.
Shares Held at Open: 3,125,000
What does EV1 do?
EV1 is a sustainable, ESG friendly, advanced stage graphite project in Tanzania.
What is the macro theme?
Graphite is a key component in lithium ion batteries.
Our previous battery materials investments have been very successful.
Up until now we did not have any exposure to graphite and its growing demand. Graphite has many other applications beyond electric vehicles too.
Why did we invest in EV1?
Smaller, advanced graphite project so quick to market while graphite market strong
Fully permitted with JORC resource and DFS (US $87M capex for US323 NPV),
ESG focussed investment
ESG fund invested $8M and is forcing EV1 to be “best in class ESG”, so it can secure ESG capital funding to develop project
Market cap should catch up to peers by progressing down stream value add (good cap table, key shareholders escrowed).
What do we expect EV1 to deliver?
Objective #1: Final Construction Decision & progress towards Project Funding
The name of the game for EV1 is to reach a final construction decision and secure the ~US$87M required in capital costs to bring the project into production. DFS upgrades and optimisations will form a part of this process, but more importantly, EV1 needs to deliver all of the ESG requirements set out by ARCH (the cornerstone ESG shareholder), so that ARCH can help EV1 secure funding from other ESG funds in its network that only invest in top class, proven ESG opportunities.
Front end engineering design (FEED) – Appointment of Engineer
Front end engineering design (FEED) – Progress update
Front end engineering design (FEED) – Final report
ESG – Initial assessment or report
ESG – Sustainability report
ESG – Quarterly progress reporting
ESG – Life cycle assessment report
ESG – Progress towards zero carbon operation
ESG – ESG investment readiness announced
ESG – Independently assessed ESG score
ARCH Provides further project funding
ARCH introduces other ESG funds
Strategic Board appointment
Objective #2: Assess Downstream “Value Add” Opportunities
Assessing further downstream “value add” opportunities and the prospect of commercialisation is important for EV1’s success. Given that each graphite project’s mineralisation has a “unique signature”, it will be important for EV1 to work with potential offtake partners to ensure compatibility with existing technologies as well as the development of new technologies with EV1’s graphite.
Market update on downstream value add studies
Market update on downstream value add partnerships
Market update battery specific value add (studies or partnerships)
MoU signed with downstream partner 1
MoU signed with downstream partner 2
Offtake agreement 1
Offtake agreement 2
Objective #3: Increase Resource Size and find more shallow resource
Whilst an increase in the resource size is not necessary for making a final investment decision, the greatest opportunity to improve project economics identified in the DFS was adding more near-surface graphite deposits to substantially reduce mining costs.
We expect EV1 to undertake an expansionary drill program mid-way through next year, with a geophysics program to identify drill targets to commence imminently. We also want exploration to optimise the economics of the DFS by finding more resources at a shallow depth (cheaper to extract).
Announce Exploration Program
Drill Targets Identified/Refined
Drill Program commenced
Drill results announced
What could go wrong?
Any Tanzania sovereign risk flare ups will spook investors and dampen share price
Graphite prices could fall making the project harder to fund or uneconomical
Might struggle to secure ~$87M US to develop the project if market softens or they fail on ESG aspects
What is our investment plan?
We are holding a core position (min 50%) long term (4 to 7 years) to hold into first production
The company has a low market cap compared to peers, if EV1 delivers key milestones and the share price re-rates we will (progressively) sell ~20% with the goal to fee carry
if the company rises more than 500% after 12 months holding (CGT tax discount) we will look to take some profit progressive sell down of ~25%
Disclosure: The authors of this memo and owners of Wise-owl, S3 Consortium Pty Ltd, and associated entities, own 3,125,000 EV1 shares at the time of publication. S3 Consortium Pty Ltd has been engaged by EV1 to share our commentary on the progress of our investment in EV1 over time.
✅ Initial Investment: @20c
🔲 Top Slice
🔲 Free Carry
✅ Initial Investment: @32c
🔲 Top Slice
🔲 Free Carry
🔲 Take Profit
🔲 Price increases 300% from initial entry
🔲 Price increases 500% from initial entry
🔲 Price increases 1000% from initial entry
✅ 12 Month Capital Gain Discount
🔲 Hold remaining Position for next 2+ years
|Date||Share Price $||Title|
|22-Apr-2023||$ 0.270||5 Battery Materials Stocks for 2023|
|18-Apr-2023||$||EV1 signs Framework Agreement for graphite mine in Tanzania|
|20-Mar-2023||$||EV1 releases DFS for its graphite project in Tanzania|
|08-Mar-2023||$||EV1 settles landmark agreements with the government of Tanzania|
|27-Jan-2023||$||Why is the EV1 share price running?|
|10-Dec-2022||$ 0.260||Graphite and our Pick of the Year - Battery Materials Thematic|
|27-Oct-2022||$||EV1 Begins Drilling - Targeting More Shallow High Grade Graphite|
|29-Sep-2022||$||EV1 Locks in Binding Terms for Downstream Graphite JV|
|10-Sep-2022||$ 0.315||Two stocks in the spotlight: TYX, EV1|
|08-Sep-2022||$||Increased Investment: “Value added” Graphite for Electric Vehicles and Nuclear|
|09-Jul-2022||$ 0.400||Markets showing life after June tax loss selling|
|07-Jul-2022||$||EV1’s Graphite Meets Purity Standards - Good for Batteries and Nuclear Energy|
|21-Jun-2022||$||EV1 Key Engineering Appointment - Following the Syrah Playbook|
|10-May-2022||$||EV1 Signs Binding Graphite Offtake, Eyes Downstream Joint Venture for EU Market|
|02-May-2022||$||EV1 Firms up first offtake deal, sets sights on European downstream manufacturing|
|12-Mar-2022||$ 0.460||Nickel, the War and Under Investment in Exploration|
|08-Mar-2022||$||Never miss a chance to improve DFS economics with near surface exploration.|
|26-Feb-2022||$ 0.460||The War Begins, Cybersecurity, Food Security, Energy Independence and Precious Metals|
|23-Feb-2022||$||Graphite to boom in 2022? EV1 targeting greenest graphite into European markets|
|05-Feb-2022||$ 0.430||The "Lesser Kown" Energy Transition Metals: Copper, Aluminium, Graphite, Helium, Rare Earths|
|18-Dec-2021||$ 0.425||Investing 101: Taking Stock of your Stocks and Diversification|
|15-Dec-2021||$||A look at ARCH, the ESG Fund is backing EV1|
|04-Dec-2021||$ 0.440||Omicron, Inflation and Investment Memos|
|27-Nov-2021||$ 0.530||New COVID strain, Santa Rally, Market Thoughts|
|25-Nov-2021||$||EV1 Cements its Commitment to ESG|
|20-Nov-2021||$ 0.530||Australia bets big on Hydrogen at COP26, investment in companies that solve problems|
|16-Nov-2021||$||Introducing our Pick of the Year|
|06-Nov-2021||$ 0.585||COP26, Battery Metals, Green Energy|
EV1 makes its second graphite discovery for the year.
May 22, 2023|
Our 2021 Wise-Owl Pick of the Year Evolution Energy Minerals (ASX: EV1) just made another graphite discovery at its project in Tanzania.
EV1 to build its downstream plant in the USA
May 16, 2023|
Our 2021 Wise-Owl Pick of the Year Evolution Energy Minerals (ASX: EV1) is looking to build its downstream processing strategy in the USA.
EV1 Project financing update
May 11, 2023|
Our 2021 Wise-Owl Pick of the Year Evolution Energy Minerals (ASX: EV1) just put out a project financing update.
Drilling results are in - new graphite discovery made
May 1, 2023|
Earlier this morning , our 2021 Wise-Owl Pick of the Year Evolution Energy Minerals (ASX: EV1) announced that it had made a new graphite discovery. EV1 became our pick of the year primarily due to its shovel ready, DFS level graphite project in Tanzania - the DFS was updated back in March and showed attractive project economics, in particular its NPV of US$338M.
Framework Agreement signing ceremony set for 17 April
Apr 11, 2023|
Our 2021 Wise-Owl Pick of the Year and graphite Investment Evolution Energy Minerals (ASX: EV1) now has a date for the official signing ceremony for a Framework Agreement with the Tanzanian government. The date is the 17th of April (next Monday).
General updates from EV1