Why Is Sarytogan Graphite (ASX:SGA) Trading at a 52-Week Low?

Sonal Goyal

26 October 2026 09:46 PM AEDT

Why Is Sarytogan Graphite (ASX:SGA) Trading at a 52-Week Low?

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Key Highlights

Sarytogan Graphite (ASX:SGA) traded at $0.057, down 9.52%, after touching a 52-week low during the 26 October 2026 session.
The DFS reports a pre-tax NPV8 of US$132.7 million, capex of US$80.5 million and an IRR of 19.8%.
Cash was A$1,015,000 at 30 September 2026, and trading resumed on 26 October after a three-day suspension.

Sarytogan Graphite Limited (ASX:SGA) shares touched a 52-week low during the Trading session on 26 October 2026, trading at $0.057, down 9.52% on the day. Sarytogan develops a graphite project and holds the Baynazar copper exploration project in Kazakhstan. On the same day it released its quarterly activities report for the period ending 30 September 2026, which covers the Definitive Feasibility Study (DFS) published on 21 October.

Definitive Feasibility Study for the Upstream Project

The Quarterly Report summarises the DFS for a 50,000 tonne per annum upstream graphite concentrate project, published after quarter end on 21 October 2026. Key figures include a pre-tax NPV at 8% of US$132.7 million (A$189.6 million at 70 cent FX), total capex of US$80.5 million, total operating cost of US$364 per tonne of concentrate, an IRR of 19.8% and an EBITDA Margin of 51%, based on an average selling price of US$805 per tonne.

The Ore Reserve is 14.5 million tonnes at 29.1% total graphitic carbon (2.5 million tonnes Proved and 12.0 million tonnes Probable), including a higher-grade component of 8.9 million tonnes at 31.8%. The reserve draws on a Mineral Resource of 225 million tonnes at 29.2%. Planned sales include 20,000 tonnes a year for drilling fluids, lubricants and friction products, 10,000 tonnes for foundry and recarburiser markets and 20,000 tonnes for a Downstream battery-materials business.

The company states that 8.5 million tonnes of the higher-grade component is scheduled for processing over a nominal mine life of more than 50 years, consuming less than 4% of the Mineral Resource. TGC, or total graphitic carbon, is the measure of graphite content used for the reserve and resource, and LOI1000 refers to the loss on ignition method used for concentrate grade, quoted at 90% for the planned product.

Downstream Testwork and Copper Drilling

About 30 kilograms of ultra high purity fines and spherical purified graphite were produced in the United States, and 5 kilograms of coated spherical purified graphite were shipped to a European battery prototype organisation for 5Ah pouch-cell testing. Samples are with potential customers, whose identity is protected by confidentiality agreements. The 2024 pre-feasibility study reported incremental downstream NPV of US$367 million for an additional US$194 million of capex.

At the Ilksan copper prospect in the Baynazar project, a 1,000 metre, three-hole diamond program intersected porphyry copper mineralisation from surface. Hole DDH-IL26001A returned 318 metres at 0.14% copper, DDH-IL26002 returned 229 metres at 0.14% copper and DDH-IL26003 returned 452 metres at 0.063% copper. The company said follow-up drilling is required to the west and south.

Corporate Update and Trading Resumption

Cash on hand was A$1,015,000 at 30 September 2026. The company obtained orders from the Supreme Court of Western Australia on 23 October 2026 to rectify an inadvertent failure to lodge a prospectus in relation to an Options issue. It incurred three days of voluntary suspension from trading, which has been lifted, and trading was expected to resume on Monday 26 October 2026.

About Sarytogan Graphite

Sarytogan Graphite holds the Sarytogan graphite deposit and the Baynazar copper exploration project in Kazakhstan. It has an agreement with the EBRD and is working with potential customers across lithium-ion battery, alkaline battery, steel, foundry and brake markets.

The downstream testwork table compares typical industry specifications with the company's 2023-24 and 2026 results, including purity above 99.99%, tap density of 0.99 to 1.26 grams per cubic centimetre and spheroidisation Yield of up to 97.7%.

Risks

The company's cash of about A$1.0 million is small relative to the project Capital of US$80.5 million, and the next steps include progressing offtake and project financing discussions that have not been concluded. Copper hole DDH-IL26003 returned a lower grade than the other two holes. The trading suspension and court orders relate to a compliance matter involving a prospectus.

The report also records that the DFS financial metrics rest on an average selling price of US$805 per tonne of concentrate and a US$0.70 exchange rate, so the figures depend on those inputs. The downstream Business case relies on product qualification with battery customers, which is still at the sample-testing stage.

Catalysts on Investors' Radar

Next steps listed include continued product testing and customer qualification, progress on offtake and project financing, commencement of a DFS on the downstream project, detailed design of priority infrastructure and the Environmental and Social Impact Assessment for international banks.

Final Perspective

Sarytogan touched a 52-week low on the first trading day after a three-day suspension and five days after publishing its DFS. The quarterly report shows project metrics, test samples with customers and a cash balance of about A$1.0 million.

FAQs

Q: What is the Ore Reserve?

A:14.5 million tonnes at 29.1% total graphitic carbon.

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