Hi all ozpolar bear posted a great post, ton versus SYR with his permission i've reposted it here and I added the MNS version. As many will attest Im not much of FA guy so wold like to hear pro's and cons on this debate. Yes we will get some non holders posting, just roll with it. Ozpolarbear seems very knowledgeable and doesnt seem to of looked into mns at moment. His contribution should be welcome if I can entice him over here.
1) Period – TON -20 years; SYR – 3 years. TON wins hands down MNS has 15 year deal with room to extend
2) Pricing – Market price – Both SYR and TON will be selling at market price. SYR’s offtake mentions quarterly negotiations based on market price. SYR expects price to be between 1100 to 1600 USD from 2015- 2019 MNS is selling there entire basket, current price of $2100 3) Offtaker – TON – YXGC; SYR – Chalieco, an affiliate of Chinalco MNS offtakes with SINOMA and SINOSTEEL (Google them)
While some people have been quick to come out of the woodwork to make all sorts of wild accusations against TON, no one seems to be focusing on any issues with SYR’s offtake partner. Seriously google MNS offtake parters there Massive, Sinoma has just put up the 150 million to build the plant
Credit to @tobyjack for figuring this out – losses of Chalco, fact that Chalco is named (with logo) in SYR 2014 presentation
4) Floor price- TON – 1000; SYR none. TON wins hands down again No Floor price for MNS but they have Jumbo and super jumbo flake and are selling there entire basket not just the top 40% like Ton.
It means that if graphite price falls to 700, TON will still get 1000, while SYR gets 700 Floor price is a good thing, no doubt.
5) $650 graphite negotiations – TON’s offtake came under some criticism that there would be negotiations if graphite price fell to 650. Same applies to SYR obviously; so not sure why only TON gets criticized.
6) Quantity per year – 100,000 tonnes per year; SYR – 80000 tonnes per year MNS 180,000 tons a year with bigger partners then ton or SYR
7) Graphite offtaker- TON – Yes –YXGC is a graphite company as the “G” in the name clearly suggest. Graphite is thus in YXGC’s blood. Chalieco has far less interest in graphite,and seems more into engineering. Google Sinoma and Sinosteel, no really google them (Sinoma 50,000 employees with revenues in the billions)
8) Restrictions on selling to others - TON has no such restrictions on sale, while SYR does. TON has the ability to race ahead with other offtakers during this time MNS no restrictions either
9 Conclusion – For me all along, the difference in market cap between TON and SYR was the main factor. Only graphite player thats been in an uptrend for 18 months, only graphite player that is touching the highs of the graphite P&D from a year ago.
MNS Price at posting:
25.0¢ Sentiment: None Disclosure: Held
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