Construction milestone: IG6 locks in non-dilutive NAB finance for Collie
International Graphite Limited (ASX: IG6) has executed non-dilutive construction finance loan agreements with National Australia Bank (NAB) to fund the production building for the Collie Micronising Facility in Western Australia. The total facility is valued at approximately $1.5 million, and because the finance is non-dilutive, existing shareholders are not being diluted to fund this construction milestone.
The NAB facilities complement existing funding sources, including equity commitments, forecast R&D funding receipts, and funding remaining available under the $4.5 million Financial Assistance Agreement with the Collie Investment and Transition Fund. The production building is targeted for completion in Q2 2027.
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Understanding the loan structure
The NAB finance package consists of two components designed to minimise near-term cash pressure on the company.
- Secured business markets loan: Funds construction costs, carries a two-year term with interest capitalised during construction, then converts to an amortising loan over 13 years
- Overdraft facility: Provides working capital support alongside the construction loan
Interest capitalisation means that rather than making cash interest payments during the construction phase, interest accrues and is added to the loan balance. This reduces cash outflows while the facility is being built and generating no revenue. The subsequent 13-year amortising structure signals a manageable long-term repayment schedule once the facility is operational.
| Facility Type | Lender | Purpose | Term | Structure |
|---|---|---|---|---|
| Secured business markets loan | NAB | Construction costs | 2 years + 13-year amortising | Interest capitalised during construction |
| Overdraft facility | NAB | Not disclosed | Not specified | Not disclosed |
Why Collie matters: graphite processing for sovereign supply chains
The Collie Micronising Facility is being developed to supply advanced industrial graphite products to established markets across industrial, energy storage, advanced manufacturing, and defence applications. It forms the first component of IG6’s two-facility global processing platform, with the second facility being the Alkeemia/IG6 Joint Venture at Porto Marghera, Italy, targeting the European market.
The strategic rationale centres on sovereign supply chain security. Global customers in these sectors are increasingly seeking reliable supply alternatives to dominant traditional suppliers, and Collie is positioned to serve the Asia Pacific segment of that demand. Both the Australian and Western Australian Governments have recognised IG6’s significance to national critical minerals capability, providing support that reflects the project’s broader strategic relevance.
The company also owns the Springdale Graphite Project in Western Australia, which provides long-term feedstock optionality for future scaling of processing operations.
CEO commentary and what comes next
Andrew Worland, Managing Director and Chief Executive Officer
“Construction at Collie is advancing rapidly with the production building firmly on track for completion in Q2 2027. As the first of our two planned global production facilities — alongside the planned facilities at Porto Marghera in Italy — Collie will establish IG6 in the Asia Pacific market at a time when sovereign supply chains are becoming a critical priority for global customers.”
Construction is actively progressing on site, with directors visiting Collie on 22 September 2026 to observe progress firsthand. The Q2 2027 completion target remains in view.
IG6’s broader investment proposition rests on a capital-efficient graphite processing platform underpinned by proven technologies, a dual-geography footprint across Australia and Europe, and growing end-market demand from industrial and defence customers seeking supply chain security.
For investors wanting to understand what the facility could generate once operational, our deep-dive into Collie’s illustrative revenue profile covers the $26.0 million to $32.4 million annual revenue range modelled at current spot prices, the EBITDA sensitivity to pricing and cost movements, and the superfine product capability unlocked through finalised equipment selection.
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