Renascor Resources’ Share Price Builds on Stellar January (ASX:RNU)
At time of writing the RNU share price is up 10% to trade at 4.4 cents per share, thanks to concessions made by the SA Government over royalties at its Siviour Mine.
Source: Trading View
Last week RNU announced its Purified Spherical Graphite (PSG) had passed first stage product qualification, allowing them to progress towards a binding PSG offtake agreement.
‘New mine’ status
Today RNU announced that it received confirmation from the SA Government Treasury that the Siviour Graphite Project has been classified as a ‘new mine’ for the purposes of state royalties.
The ‘new mine’ status means that the project will receive a reduced royalty rate of 2% of the net value of the minerals recovered through 30 June 2026.
A reduction of 3.5% compared to the initial years of production.
Good news for both RNU and shareholders as the reduced rate will assist RNU in its strategy to be among the world’s lowest-cost producers of PSG.
Commenting on the decision, managing director David Christensen said:
‘Renascor has enjoyed a strong level of support from the South Australian Government, which recognises the substantial value-add that the world-class, worldscale Siviour Purified Spherical Graphite production facility brings to South Australia.
‘We are confident that through our Siviour Project, South Australia can become a truly globally competitive hub for the manufacture of raw materials critical to green energy revolution.’
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Where to next for Renascor Resources?
RNU has now entered into offtake agreements for over two-thirds of Siviour’s Stage 1 production of PSG.
And the prospective producer says it is concurrently discussing additional potential PSG offtake agreements for the remaining Stage 1 production.
RNU plans for Siviour to be a vertically integrated operation with a downstream processing operation to produce PSG.
Meaning RNU will mine, process, and market their product without any third-party interaction.
This will be Australia’s first vertically integrated PSG production facility.
And will boast the largest reported graphite ore reserve outside of Africa.
With a rising demand for electric vehicles and off-grid power storage, there is reason to hold a positive outlook for RNU’s share price — particularly with the renewables sector drawing in big investment currently.
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