Good point! I think that the management understands graphite...

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shibumi

206 Posts.

04/06/15

15:33

Post #: 15413512
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Originally posted by cartex ↑

A couple of comments...natural graphite can be more accurately classified as a technical mineral and NOT entirely as a commodity product as been described in the media. Also, the term "offtake" applies to iron ore or nickel for example, both being sold before being mined. New start ups that have non-graphite management or non-graphite experience have used the term "offtake" and try to use the concept term where it does not apply.

An offtake agreement is between a producer and a buyer of a certain resource; it formalizes the intention of the buyer to purchase a certain amount of the producer’s future output. Generally, offtake agreements are negotiated prior to the construction of a mine as they provide producers with assurance that there is indeed a market for the project’s future output.

No graphite powder, with one example exception being amorphous for mould release agents used in foundry, can be sold as an "offtake agreement"! Graphite powders are sold as a spot buy, blanket order, consignment, supply agreement or sales contract as ALL graphite powders have to qualified before being sold or contracted.

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Good point! I think that the management understands graphite quite well. My guess is that between the Korean and Indonesian management of the two parties, they have used the term off take incorrectly?
I was googling Anton Rianto and Husni Thamrin. They definitely understand graphite. Looks from the website like they mine it already.

found this link

www.grafindonusantara.com

WMN Price at posting: 53.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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