In my opinion Matt, you really should evaluate all questions/educated opinion put forward about stocks you hold or are interested in, no matter how awkward and defensive they make you feel.
Ddzx, You will notice that Kenmare/Superior Graphite were targeting 17Kt large flake output from the Ancuabe mine back in 1999 from relatively low TGC ore, similar to MNS's percentage.
In the 17 years since this report, the Graphite Mining Industry and well established companies such as GK will have advanced their production processes and techniques to improve graphite flake preservation and make production less detrimental to their size hence the outstanding initial test results reported from Triton's Ancuabe project licences.
On the potential output TMG figures;
YXGC Offtake - 125Kt (ramped up)
YXGC JV's - 125Kt
SQZG Offtake 200Kt
Take a look at the distributions of Triton's two locations and details in the deals, then work out where you would consider feedstock to be of.
Enjoy;
Ancuabe Graphite Mine - Kenmare 1999
The Ancuabe Graphite Mine in Mozambique is the world's leading producer of high quality natural flake graphite. ‘Kenmare Flake’ offers consistent high purity and large flake size, making it suitable for the most demanding applications.
The Ancuabe Graphite Mine produces natural large flake graphite with grades of up to 98.5% carbon, without chemical leaching. This is possible by the advanced production process and the unique characteristics of the ore. The production process encompasses various stages of flotation, milling, filtering, drying and dry screening of the final concentrates. All graphite is produced from the same orebody thus ensuring consistency of flake size distribution and purity levels.
Demand for ‘Kenmare Flake’ has remained strong in the niche markets which we serve. We achieved
price increases in 1998 despite the general commodities downturn.
During the early months of 1998, the graphite mine experienced difficulties with the plant generator sets. These problems were resolved with the installation of additional filtration and new alternators with an increased capacity rating. The mine output immediately started to improve and by August the mine was producing at circa 600 tonnes per month. Production continued to improve, averaging in excess of 600 tonnes per month until early December. At this level, the mine covers its costs and provides some cash to Kenmare.
In December-January there was an exceptional drought. Lack of process water disrupted production. We had already constructed an additional water storage reservoir, but needed the rains to fill it. The rains came in mid-February, rather than late November, as is usual. After this period of drought, which exceeded anything in the thirty years of meteorological records, the rains were exceptionally heavy. The resultant flooding prolonged the period of production disruption.
We are conscious of the need to further improve production. Consequently, we have engaged LTA Process Engineering Limited (South Africa) and Bechtel Corporation (USA) to undertake a study of the existing plant at Ancuabe and to report on the options available for expansion. LTA/Bechtel has made a number of specific recommendations to allow the existing plant to increase output to target levels. These recommendations are being acted upon.
LTA/Bechtel is also developing a detailed study which will allow the plant capacity to increase to circa 1,400 saleable tonnes of graphite per month. Such an expansion will only be undertaken following a clear indication from our major consumers of their desire to acquire additional product. Kenmare has already had preliminary discussions regarding the financing of such an expansion, including with the European Investment Bank which has confirmed its interest.
Superior Graphite Company completed its investment in GDAS subsequent to the year end. Under the investment agreement, Superior made sales based incentive payments of US$1.1 million, extended a loan of US$200,000 and earned an interest in the Ordinary Shares of GDAS for US$100,000. Incentive payments relating to 1998, amounting to IR£553,000, have contributed to a reduction in the reported loss for 1998. The equity interest has been calculated at 12.08% of the Ordinary Shares and represents an investment of 3.2% in the total equity in GDAS. Together with the conversion of the project debt in GDAS, the completion of this agreement strengthens the GDAS Balance Sheet and puts the Ancuabe Graphite Mine in a much stronger position.
