First Graphene Limited (ASX:FGR) has extended its excellent relationship with Kahatagaha Graphite Lanka Limited (KGLL) with the placement of a purchase order for a further 500 tonnes of graphite.
The order was handed to the KGLL Chairman, M.R.M. Hamjad, on Monday at a meeting with FGR’s Managing Director, Craig McGuckin.
The placement of this order secures supply for both the Australian business and for the First Graphene (UK) Limited business as it develops its customer base in the UK and Europe.
KGLL Chairman, Mr M.R.M Hamjad receiving the purchase order from FGR Managing Director, Craig McGuckin
FGR already holds a stockpile of approximately 400 tonnes of Sri Lankan lump graphite, predominantly supplied by KGLL. This purchase order further cements FGR’s position as a preferred customer of KGLL. While initial shipments are destined for Australia, later shipments are likely to be shipped to the UK for development of FGR UK’s business.
Industry interest has been growing, with test work conducted with large industrial partners and initial sales having commenced. The market will be informed as supply agreements are executed. FGR’s industry clients seek assurance on supply chain management, and this inventory is essential to provide that assurance level to those clients.
Highlights
- Purchase order placed for a further 500 tonnes from the Sri Lankan Government-owned graphite mine
- Extension of supply agreement evidences the excellent relationship with Government
- Addresses concerns that some shareholders have had about certainty of supply of raw materials
- Underpins growth potential in Australia, UK and Europe.