TON Offtakes, page-14

Mainholm's insight into the industry-wide implications of this great deal are very enlightening. He is telling it like it is! A floor price of US$1000 would be very favourable for the volume producers, and should also allow most of the smaller producers to make a dollar.

One point that has not been mentioned to date, and which is significant positive news for SYR, is the purity level of the graphite to be supplied by Triton, for the floor price of US$1000 per tonne. The graphitic carbon content of the concentrate is only 90%. Simple, low-cost flotation of the Balama ore yields a first-cut product of 95% plus, and that level seems to be able to be easily improved on if required by the customer. If the market is growing as fast as is indicated by the speed at which customers are signing offtake agreements, then SYR may be looking at some attractive pricing for their graphite - and the high vanadium content is still there, to provide a little more icing on the cake.

Cheers,

Prime1