The market can be wrong no doubt, but not over the space of 3+ years.
The off takes are not being considered to be worth anything, how can you dispute that?
They can be canned at any stage. Take a look at the PLS announcement from today as an example of what a legitimate off take deal should look like.
The reason the off takes are not worth anything is because nobody will provide finance against them, not even these chaps who are so desperate to get all this graphite and who posted ~$500m profit last year, strange one that. The reason nobody will provide finance is because the business is not viable with the current quoted figures (they were entered into during a bull graphite market) and as I said before this is the reason they are gradually increasing the proposed output of the plant and re crunching the figures. Buying time is the other reason.
KNL won't have the luxury of going the route of SYR with dilution for capex, which isn't necessarily a good route anyway going by the SP there.
All in above is in my very humble opinion.
KNL Price at posting:
16.0¢ Sentiment: Sell Disclosure: Not Held
