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Mining group Armadale Capital said the estimated cost of developing its Mahenge Liandu graphite project in south-east Tanzania had risen to $39.7m, though so had its output potential and overall value.
The numbers were given in an updated definitive feasibility study, the previous of which had pegged project capex at $38.6m.
The project's estimated life had been shortened to 15 years, from 17 years, but its average annual graphite production upped 30% to 109k tonnes per annum.
Its re-tax net present value was increased 20% to $430m with an internal rate of return of 91%.
The $39.7m capital cost estimate included contingency of U$S4.1m or 15% of total direct capital cost.
First production was expected to occur about 10-12 months from the start of construction.
Chairman Nick Johansen said the updated study lent support to ongoing discussions for binding offtake agreements, debt package finance for construction and project-level development funding.
At 2:06pm: (LON:ACP) Armadale Capital PLC share price was -0.05p at 3.93p