Kookaburra Graphite Project PFS Delivers 41% IRR Amid Broader Exploration Progress

Strong Economic Case for Kookaburra Graphite

Lincoln Minerals Limited (ASX: LML) has delivered a significant milestone with its December 2024 Quarterly Activities Report, highlighting the successful completion of a Pre-Feasibility Study (PFS) for the Kookaburra Graphite Project (KGP) in South Australia. The PFS outlines a robust project with a pre-tax net present value (NPV10) of A$114 million and an internal rate of return (IRR) of 41%, underpinned by a two-stage development strategy designed to minimise upfront capital expenditure and mitigate risk.

The project’s economics are bolstered by high-grade graphite deposits starting at surface, low operating costs estimated at US$573 per tonne of concentrate, and a manageable capital requirement of A$29 million for Stage 1. The staged approach allows Lincoln to enter the industrial graphite market initially, with plans to pivot towards the lithium-ion battery sector as market conditions improve and certification processes are completed.

Strategic Shift to Capital-Light Development and Cost Efficiency

Following substantial investment throughout 2024, Lincoln is transitioning its advanced projects, including KGP and the Green Iron (magnetite) Project, into a less capital-intensive phase. The company is prioritising strategic discussions with potential offtake partners, equity investors, and government funding bodies to secure development capital while reducing shareholder dilution.

In parallel, the Board has initiated a comprehensive cost review across all business units, targeting significant reductions in administrative and overhead expenses. This cost discipline is expected to lower the company’s cash burn in the coming quarters, aligning operational expenditure with current market realities and preserving capital for key growth initiatives.

Exploration Progress in Uranium and Base Metals

Lincoln continues to advance its uranium portfolio on the Eyre Peninsula, a globally significant uranium province. Recent field reconnaissance and sampling at the Eridani and Yallunda Projects have confirmed uranium mineralisation, with portable XRF readings and laboratory assays validating historic data. The company is actively pursuing third-party funding or sale opportunities to unlock value from these assets while planning further exploration drilling in 2025.

On the base metals front, Lincoln has identified a high-grade copper and base metals target zone at its Minbrie Project. Historical drill intercepts include impressive grades such as 29.5 meters at 0.8% copper and 7.4% lead, highlighting the district’s potential. The recent grant of exploration licence EL7020 further consolidates Lincoln’s position in a prospective area for copper, lead, and zinc mineralisation.

Green Iron Project Aligns with South Australia’s Green Steel Ambitions

Lincoln’s Green Iron Project, a large-scale magnetite development, has been positioned as a core component of South Australia’s Green Iron and Steel Strategy. The project benefits from high-quality magnetite resources, proximity to existing infrastructure, and a favourable regulatory environment. Discussions with green steel groups are underway, reflecting the project’s potential to contribute to the emerging domestic green steel supply chain.

With a focus on sustainability and leveraging renewable energy sources, Lincoln’s magnetite project stands out as a premier undeveloped asset in the region, offering strategic value amid the global transition to low-carbon steel production.

Outlook and Next Steps

Lincoln Minerals is now focused on securing memoranda of understanding with downstream partners for the Kookaburra Graphite Project and advancing permitting processes for Stage 1 operations. The company also plans to integrate its new exploration licence EL7020 into its 2025 exploration program, alongside ongoing uranium and base metals activities.

As Lincoln moves into a capital-efficient phase with a disciplined cost structure, the company aims to enhance shareholder value through strategic partnerships, targeted exploration, and project development aligned with market demand for critical minerals.