Another short view, page-4

Here are some of my thoughts.

Using your sand pit analogy I would say it something like this:

SYR and TON are in the same backyard. It is a backyard with many sand pits or sand boxes if you like. Each sand box is partly full with the same type of sand, but the other sand to fill the pit up has different types for each box.

Anyway, CM's post makes some very interesting points (congrats to him on the new born as well). If everything was equal then these points would indicate that the 2 companies should be valued equally. However, as my analogy indicates, everything is not equal.

For starters, the ore bodies are not the same. The lithology is similar, but the petrology is different. SYR has an ore body that contains its graphite in schist. TON has an ore body that contains its graphite in gneiss and schist. SYR's FS highlights an important difference as well when it states:

"Snowden is of the opinion that the mineralisation is not purely lithologically controlled".

This is a profound statement and reinforces SYR's past opinion about a later and secondary metamorphic event occurring at Balama that has upgraded the graphitic ore body.

Furthermore, the geology reports from both locations indicate this metamorphic difference as well. SYR's Balama location shows geological signs that it underwent metamorphic facies at the grade of Granulite and Upper Amphibolite. TON's Balama Nth location only shows signs it underwent a Amphibolite metamorphic facies.

The grades of metamorphic facies are used to describe the different amounts of heat (temperature) and pressure occurring at specific geological locations during metamorphosis. Have a read of stuff like the following link to understand the full effects:

Metamorphic Facies and Metamorphism

The quality and properties of natural graphite have a direct correlation to both temperature and pressure being applied at time of metamorphism into a mineral allotrope of carbon.

Now this post only addresses the difference in overall ore bodies in a generalised way. Regardless, it is a very significant difference to consider for those that understand.

More importantly, SYR and TON also have a significant difference in their approaches to exploration. More so, they have a massive difference in their strategic and corporate approaches to company building. These differences are important funnymentals to consider for investors. I won't try to tell you which is better. The market is the best judge of that point and time will also tell.

Cheers