Ann: AGM Presentation, page-61

@DJG23

I'm not being cynical but trying to be somewhat balanced.

As I've said on a number of occasions, this is a completely new industry. There is no listed "pure producing graphite company " anywhere ATM . There are a lot of hopefuls but none are there yet.

In some ways IMO I can see the similarities with regards to Trevor Matthews role at Murchison. Everything in the iron ore space was "hyped up" and there was multiple companies with huge market caps and big NPV's but as I've said before not many got into production. In their case it was chasing magnetite (it did have hematite as well) in the mid - west region which was supposed to be the "new frontier" for Iron Ore as Eastern Africa is supposed to become for graphite.

I will buy either or both if either deliver real, concrete binding off takes with real, concrete binding finance. I don't care if I have to pay a bit higher than where the stock sits today as these events are the only things IMO that will trigger a huge re rating.

None of these companies to date have been able to attract any debt financing, even the biggest company in the sector. As a result IMO one has to assume that these companies will have to continue to be equity funded and that will lead to dilution.

As @kiwisparky quoted Steven Hunt : "looking at our capital structure, yeah we've got a hell of a lot of shares on issue".

And IMO this will only get bigger.

To date the biggest company in the sector has had to raise something like $450 million in equity to be fully funded in the absence of debt. If e same was required here then how many more shares will that equate to?

Even if 50% is debt funded that IMO is still enormous dilution. Even if the stock runs up to 20 cents then that dilution is still going to be very big IMO.

IMO its hard to get the numbers to work but as I said I'll be happy to buy it back for the reasons mentioned above because that will provide some certainty around these risks.