SYR or TON? Time to jump ship?, page-27

Buzzcut going to respond to your points (questions?) individually with respect to SYR ONLY, can't comment on TON.

(a) I would expect much of this micron size will never leave site as cost to get the product to market won't be worth it.

With SYR that is not correct. Production costs will be virtually nil after vanadium credits, even without prod costs for ALL ypes of graphite products will be ridiculously small. Further the jumbo and large flake graphite only represents a small portion of the graphite market. If SYR only serviced this market, their profit therefore would be correspondingly small, relative to their market cap. The medium and smaller size flake is very important to SYR as it is the largest market for graphite (atm) and because they can produce it so cheaply.

Lets put it in number terms, would you prefer to product 50k tonnes of large/jumbo graphite at $3k margin, or 400k tonnes at $1k margin for effectively the same capital expenditure?

(b) I can't understand why both these companies are drilling down so far.

Because it costs virtually nothing at Balama to drill much further because the ore is ridicuously easy to drill through. If you go back to years where they were drilling, you can look at the quarterly costs. It is also a failsafe measure...what if SYR had drilled deep but the grades deep had been very ordinary, this would have changed how they approach future """long term""" development.

(c) Anything past 150 meters in my opinion is uneconomic and uncommercial.

If its open pit, then the cost is barely different the deeper you go with SYRs deposit because there is no waste.

(d) Vanadium and the ability to remove it from the graphite for me is the question that needs answering.

Why do people keep saying this? Do they not read SYR's announcements or something. From SYR's Vanadium scoping study:

"On 8 April 2014, Syrah announced that metallurgical testwork to date has shown that the vanadium
reports to the tailings during the graphite flotation process. Assays on the graphite concentrate show
that vanadium is below detection limits in the graphite concentrate."

Cdchi1