Canadian graphite developer Gratomic Inc., the company behind Namibia’s Aukam Graphite Project, continues to face financial strain despite maintaining full ownership and operational control of one of the country’s most advanced graphite assets.
The company’s latest unaudited interim financial statements for the nine months ended 30 September 2024 reveal persistent liquidity challenges, compounded by ongoing losses and delayed creditor settlements.
Gratomic, listed on the TSX Venture Exchange (GRAT), OTCQX (CBULF), and the Frankfurt Exchange (CB82), reported a net loss of C$1.84 million (approximately N$25.4 million) for the nine months and an accumulated deficit of more than C$92.4 million (N$1.27 billion).
The company acknowledged that its current cash on hand is insufficient to cover supplier obligations and anticipated expenditures for the next 12 months.
As a result, Gratomic stated that it would need to secure new financing to continue as a going concern.
Aukam Project central to the strategy
At the centre of Gratomic’s Namibian operations is the Aukam Graphite Project, located in the Bethanie district of the Karas Region.
The project consists of a Mining Licence (ML 215) covering 5,002 hectares and an Exclusive Prospecting Licence (EPL 8746) covering an additional 49,693 hectares.
Together, these licences give Gratomic full exploration and mining rights over a 55,000-hectare area prospective for graphite, base metals, and industrial minerals.
Gratomic owns the project through its Namibian subsidiaries Gratomic Graphite Mining Namibia (Pty) Ltd and Gratomic Graphite (Pty) Ltd.
The company achieved full ownership in July 2021 after acquiring the remaining 37% interest from Next Graphite Inc. for US$153,248 (about C$207,000 or N$2.85 million).
Under Namibian law, a 2% royalty is payable to the government on the value of minerals mined from Aukam, along with a 2% revenue royalty to the individual who farms the property.
As of September 2024, the carrying value of the Aukam exploration and evaluation assets stood at C$6.82 million (around N$94 million), unchanged from the previous year, while property and equipment—primarily plant infrastructure, vehicles, and processing facilities—had a book value of C$12.9 million (N$178 million). The company also recorded an environmental rehabilitation provision of C$608,706 (N$8.4 million), reflecting its estimated mine-site restoration costs at closure.
Cash flow and financing strains
The financial statements paint a picture of constrained cash flow. The company reported C$404,753 (N$5.6 million) generated from operating activities, but a negative working capital of C$6.49 million (N$89.4 million) at the end of the reporting period, with total current assets of less than C$1,000 (N$13,800). Gratomic also carried notes payable of C$1.41 million (N$19.4 million) from eleven shareholders, all unsecured and repayable on demand, alongside a separate note of US$153,243 (N$2.8 million) owed to Next Graphite Inc.
To sustain operations, the company continues to rely heavily on short-term loans and private placements. During 2023, Gratomic raised approximately C$4.6 million (N$63.3 million) through a series of private placements at C$0.30 per unit, each comprising one share and one warrant exercisable at C$0.45. However, no new shares or warrants were issued in 2024.
In April 2024, Gratomic granted 1 million stock options to Ndelineekela Helao Shivolo, its Namibian government liaison consultant, exercisable over a five-year period. A further 1.5 million options were issued in July 2024 to Executive Chair Bruno Baillavoine at strike prices of C$0.20 and C$0.30, bringing total outstanding options to 13.02 million.
Legal and operational risks
The company continues to face legal and operational risks in Namibia. A C$175,000 (N$2.4 million) legal settlement owed to a group of consultants, due on 31 October 2024, remained unpaid at the time of reporting. Gratomic confirmed it was seeking revised payment terms to avoid judgment costs that could exceed C$210,000 (N$2.9 million), including interest and legal fees.
Gratomic’s going-concern statement acknowledges “material uncertainty” over its ability to continue operating without additional funding. The company cited “challenging capital markets for junior resources companies” and “cumulative operating losses” as significant constraints.
Broader context and outlook
Despite these challenges, Gratomic continues to promote the Aukam Graphite Project as a near-term supply source for the global battery and electric-vehicle (EV) industries.
The mine, located roughly 200 kilometres east of Lüderitz, contains a historic open-pit operation first mined in the 1940s. The company has refurbished processing facilities and installed pilot-scale equipment to produce high-purity vein graphite concentrate suitable as an anode material.
However, Gratomic has yet to publish a Preliminary Feasibility Study (PFS) or mineral resource estimate for Aukam, meaning independently verified economic data do not yet support current operations.
The company acknowledged that production decisions have not been based on a completed feasibility study, adding that this “increases the uncertainty of achieving any particular level of recovery or cost of production.”
While Gratomic continues to describe its Namibian project as its “flagship operation,” its survival now depends on raising new equity or debt financing.
As the global graphite market tightens and Namibia pursues greater beneficiation of its critical minerals, Gratomic’s financial recovery will hinge on its ability to turn the Aukam asset from an exploration story into a sustainable producer.
If financing is secured and graphite production commences as planned, Aukam could yet reassert itself as a strategic graphite source for both Namibia and the growing clean-energy supply chain — but until then, Gratomic remains under intense financial pressure.



















