Zentek Announces New PEA for Albany Graphite: US$3.85 Billion After-Tax NPV at a 5% Discount Rate, 27.4% After-Tax IRR, on an Acid-Free Route to 99.9992% Purity Graphite

Zentek Ltd. (ZEN) has released a new Preliminary Economic Assessment (PEA) for its 100%-owned Albany Graphite Project in Ontario. Prepared by Micon International, the study outlines a 30-year mine producing 30,000 tonnes per year of 99.9992% purity graphite via thermal purification using a fluidized bed reactor. The processing method is acid-free, utilizing no hydrofluoric acid.

Key economics at a 5% discount rate include: - Pre-tax NPV: US$4.18 billion / After-tax NPV: US$3.85 billion - After-tax IRR: 27.4%, with a payback period of 4.4 years - Initial capex: US$817 million; life-of-mine sustaining capex: US$1.162 billion - Average annual net revenue: ~US$639 million (based on a realized product price of $23,485/t) - Life-of-mine operating cost per tonne of finished product: US$7,989

The resource base includes 23.1 Mt at 4.14% Cg in the indicated category, with inferred resources adding 13.3 Mt at 2.88% Cg. Bench-scale testing has confirmed a purity of 5N (99.9992% C) with a boron equivalent of 2.60 ppm. The project is not expected to trigger a federal impact assessment, with single provincial permitting anticipated. Zentek is also engaged in ongoing discussions with the Constance Lake First Nation.

Chairman John Snisarenko emphasized capital discipline, stating, “Our responsibility from here is to convert this study into value … staging the work, protecting the balance sheet and being disciplined about how each phase is funded.”

Zentek Ltd. (ZEN) released a Preliminary Economic Assessment (PEA) for its Albany project, providing the first quantified economic model for the asset. The study calculates an after-tax net present value (NPV) of US$3.85 billion, a figure that stands in stark contrast to the company’s current market capitalization of approximately C$115 million (US-equivalent). This valuation represents a scale differential of over 30 times the company’s current equity value.

The PEA targets a summer 2026 completion date and outlines a product with a 5N-grade purity suitable for nuclear applications. The study assigns a value of US$23,485 per tonne to the concentrate, which is approximately $10,700 per tonne higher than typical battery-grade concentrates. The project requires an initial capital expenditure (capex) of US$817 million, an amount roughly seven times the company’s current market cap. While the company anticipates funding through government grants, strategic partnerships, and potential royalty or streaming deals, the financing footprint suggests significant potential dilution for shareholders unless a major partner or acquirer provides capital.

The assessment is classified as a PEA, meaning it includes inferred mineral resources that cannot be reliably converted to reserves. Consequently, the project’s economic viability remains uncertain. However, the magnitude of the calculated NPV provides a substantial margin of safety against the typical uncertainties associated with PEA-level studies.

The stock is currently trading near $0.92, which is below the $1.00 Nasdaq compliance threshold. The release marks the first complete economic quantification of Zentek’s flagship asset, fundamentally altering the perceived value of the company.

Zentek Ltd. is a Canadian materials science and graphite development company. Its flagship asset is the 100%-owned Albany Graphite Project, an igneous-hosted deposit near Hearst, Ontario. The project aims to produce ultra-high-purity (5N+) graphite for nuclear, defense, aerospace, and premium battery markets without using hydrofluoric acid. A U.S. joint venture (Strategic Graphite Partners LLC) manages customer qualification and government relations. The company also has a graphene-based air filtration product (ZenGUARD) and a biotech subsidiary (Triera).

The Albany property is not yet permitted; environmental baseline studies are underway. The new PEA is the first public economic model for the project, using only open-pit resources and thermal purification.