Black Rock Mining Limited
(ASX: BKT)Share Price and News
About Black Rock Mining
Black Rock Mining is an Australian company focused on developing the Mahenge Graphite Project in Tanzania.
Holding an 84 per cent interest in the project, Mahenge hosts a JORC-compliant mineral resource of 213 million tonnes at 7.8 per cent Total Graphitic Carbon (TGC) and an ore reserve of 70 million tonnes at 8.5 per cent TGC.
The project is designed to produce about 340,000 tonnes of high-purity flake graphite each year over a 26-year mine life. Favourable capital costs, strong margins and low technical risk position Mahenge as a highly competitive development.
Black Rock Mining's Company History
Black Rock traces its history to 2003, then known as Mokuti Mining, then focused on gold in WA. It changed its name to Green Rock Energy in 2005 after acquiring the geothermal energy licenses adjacent to Olympic Dam in March 2005.
It acquired Mahenge in mid-2014 and then adopted its current name, paying 167m f its own shares and committing $600k in exploration spend. The first JORC Resource came in early 2016, at 131mt @ 7.9%, 40% indicated. This was the fourth largest resource globally. A PFS was complete in April 2017 and a DFS in 2018, which was enhanced in 2022.
Key steps along the way were receiving Mining License Approvla in early 2019, and by welcoming POSCO as a would-be customer and investor in 2020. By the end of that year, it had a 15% stake, paying US$7.5m which was a 23% premium.
Future Outlook of Black Rock Mining (ASX: BKT)
Black Rock Mining's future is closely tied to the successful development of the Mahenge Graphite Project.
The company has secured offtake deals including with POSCO, which is also a key investor. Other key agreements include with the Tanzanian Electric Supply Company (TANESCO) to ensure a reliable power supply for the project.
The global demand for high-purity graphite, driven by the electric vehicle and renewable energy sectors, positions Black Rock to capitalise on these market trends. However, potential investors should be aware of risks, including project financing challenges, market volatility and sovereign risk.
Is BKT a Good Stock to Buy?
Investing in Black Rock Mining offers exposure to a high-quality graphite project. Graphite is essential for electric vehicles and renewable energy storage and this project is the world's fourth largest. The company's Mahenge Project presents compelling economics, with low operating costs and high-purity graphite production.
But the challenge will be securing a genuine financing package. The capex for Module 1 will need over US$225m and the other 3 will need over US$100m each.
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Frequently Asked Questions
Black Rock Mining’s Mahenge Project has a JORC 2012 resource of 212 million tonnes at 7.8% Total Graphitic Content (TGC) and reserve of 70 million tonnes at 8.5% TGC.