Media Reports, page-929

It's good to see they're banging on about more -100 flake size is now mined than the rest of all the other flake sizes combined. The growth in every other flake size is close to zero which is why I would be wary of BKT atm.

According to BKT, they have signed a Term Sheet in 23 December 2021 with POSCO to take all of their fines -100 mesh size flake (30kt) from Module 1 which will produce 89kt/yr concentrate. This equates to ~33% battery grade (-100 mesh size). They intend to build 4 modules (not unlike Vidalia) to eventually produce 350kt. It's a quick way to go broke if you build a mine capable of producing 350kt of concentrate if there is no market for 231kt of it. BKT do mention it as a risk. They also mention inability to access funding as a risk. It's going to be difficult to fund a project which can't sell 66% of what it producers? They are looking for a strategic partner and sell down to provide funding.

A term sheet is like a MOU with more detail. POSCO haven't signed a binding off-take as yet. We know all about delays in getting binding off-takes signed.

SYR is 85% battery grade and 15% larger sizes while the graphite grades are double BKT. SYR's plant and mine is half the size of what they have to build and pay to run to produce the same amount of concentrate. Because BKT will be predominately producing large size flake, they are hoping to produce 99% concentrate which will help with costs versus SYR's 96% atm.

Their only hope is if hydrogen fuel cells using graphite block technology takes off. I think it will but when is debatable. The LIB market is going to require every battery grade flake BKT can produce. I can't see how they can do it economically atm. One to keep an eye on though.