npv, page-7

Hi Neptune,

My understanding is that the first 20 years or so of production will be of the 20% grade graphite material.
This should halve the volume of material mined from your 2.5mt to 1.25mt for the same output of 220kt. It should also reduce the amount of vanadium produced. However, it is also possible that the 20% grade graphite comes with a higher vanadium grade (sorry but can't check right now) so V production may not be halved. Either way, the higher grade ore should have a significant effect on the numbers.
The new 'sushi' zone mentioned in the release sounds like the vanadium grades could be higher again. I wonder if they will hit 1%?. Maybe they should have called it the 'wasabi' zone given how green the ore looks!
I am guessing that given the massive V credits, the cost of graphite production will be negative in graphite terms - a bit like Norilsk and its negative cost nickel production due to polymetallic credits. This will put the cat among the pidgeons in the graphite world!
If we weren't already on Glencores hit list we sure as hell will be after today's announcement.