NextSource Materials Announces Updated Feasibility Study Results for Molo Mine Expansion to 150k tpa of SuperFlake(R) Graphite Concentrate

NextSource Materials Inc. (NEXT) announced an updated Technical Feasibility Study (FS) for a Phase 2 expansion of its Molo Graphite Mine in Madagascar. The expansion targets 150,000 tonnes per annum (tpa) of SuperFlake® graphite concentrate using modular construction.

The study outlines financial metrics including a pre-tax net present value (NPV) of US$402.5 million and a post-tax NPV of US$348.4 million at an 8% discount rate. Internal rates of return (IRR) are projected at 21.0% on a pre-tax basis and 20.0% post-tax. Total project capital expenditure is estimated at US$290.8 million, with an all-in sustaining cost (AISC) of US$665 per tonne FOB. The analysis assumes a long-term weighted average basket price of US$1,138 per tonne, real, FOB East Africa.

A critical regulatory update notes that Madagascar Decree No. 2026-831 designates graphite as a "Strategic Mineral Substance," mandating a minimum 10% non-dilutable state participation without funding contribution. The FS explicitly assumes 100% ownership by NextSource and does not model the financial impact of the 10% state dilution or potential obligations for up to 30% domestic supply.

NextSource Materials Inc. (NEXT) released a feasibility study confirming the strong technical and economic viability of the Molo expansion on paper, aligning with the company's vertical integration strategy. However, the materiality of the project is significantly capped by unmodeled 10% state dilution and a 30% domestic supply mandate. These factors are expected to directly reduce equity value, cash flows, and project economics.

The news was expected given prior announcements regarding the Molo expansion and BAF development. It does not represent a final investment decision (FID) or secured financing. The company remains in a cash-burn phase with a going concern flag. The feasibility study does not address the immediate capital shortfall or the timeline for securing the US$290.8 million required for the expansion.

NextSource Materials Inc. is a Canadian-listed company focused on natural graphite mining and vertical integration into battery anode materials. Its flagship project is the Molo Graphite Mine in Madagascar, which is currently in Phase 1 ramp-up producing SuperFlake® graphite concentrate.

The company is also developing a Battery Anode Facility (BAF) in Abu Dhabi, UAE, targeting 14,000 tpa in Phase 1 and 30,000 tpa total capacity. NextSource Materials Inc. aims to become a vertically integrated supplier of anode active material (AAM) for the North American EV market, leveraging high-quality feedstock from Molo.