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Tuesday, 24 September 2013
Energizer Resources names new CEO, chairman as transition continues
As it transitions from a junior explorer to a mine development company, Energizer Resources (TSE:EGZ)(OTCQX:ENZR) has made two appointments crucial to its plan with the announcement of Richard E. Schler as its new CEO and V. Peter Harder as its new chairman.
The company is planning to further strengthen its operating and mine development capabilites as it aggressively advances its flagship Molo graphite project in southern Madagascar. The property has been established as one of the largest graphite deposits in the world.
The news of the senior management appointments, released in a statement late Monday, comes just over a week after Energizer announced that its previous chairman and CEO, Kirk McKinnon, resigned.
Schler, which has served as Energizer's executive vice president since September last year, has worked for the company in some capacity since April 2006, including as CFO and COO. Before joining Energizer, he held various roles in the manufacturing sector.
Meanwhile, Harder, who has been a director of Energizer since 2009, is a senior policy advisor to international law firm Dentons Canada, and was a long-serving deputy minister in the government of Canada. He is also a member of various boards, from IGM Financial to Magna International.
Energizer also updated investors on its Molo graphite project Monday, saying it is now in "advanced discussions" with numerous potential off-take partners. The pilot plant for the project is starting this month, with multi-tonne bulk samples to be delivered to potential partners within 45 days, the company said.
This delivery will represent the last consideration required by potential partners to begin finalizing project level financing and off-take agreements for Molo.
The graphite development company highlighted that new chairman Harder will play a "prominent and active role" in the interface with these potential strategic partners, using to his benefit his credentials in international trade, public policy, and environmental and natural resources.
The company's maiden resource on the property is made up of 84 million indicated tonnes at 6.36% carbon (C) and 40.3 million inferred tonnes at 6.29% C. A preliminary economic report on the asset estimates the pre-tax net present value is $421 million at a discount rate of 10%, with a 48% internal rate of return. Capital costs are pegged at $162 million, with a three-year payback period.
Recent metallurgical results are expected to positively impact the economics in the preliminary report, particularly the operating costs, IRR and net present value, with a full feasibility study anticipated in the fourth quarter.