graphite: supply critical material ..., page-7

OK

let us start the UNX kindergarten to learn about the ABCs of graphite

1st there is grade, which will influence operating costs

2nd there is metallurgy for processing. if the deposit does not have metallurgy that processes well then the grade is irrelevant

for example, SVM have proven their grade but not their metallurgy (which should be announced soon). therefore, right now, SVM remains an unknown commercial quantity

*****

some examples from other companies:

MGY (in JV) have:

124 million tonnes @ 6.3%C (reported at a 2%C cut-off grade)
60 million tonnes @ 8.1%C (reported at a 4%C cut-off grade)
20 year mine life producing 84,000 tonnes of concentrate p.a.
Concentrate average specifications; 92%C
Capital cost US$162 million
Operating cost FOB, including road transport, $482 per tonne


SYR have:
global high grade 1.15BT at 10.2%
one core super high grade 51mt tonne at 19.8% grade
other high grade, such as Sushi, with super jumbo size flakes
producing 220Kpa of product, just the 19.8% grade component is already a 46 year mine life
due to the high grade: opex is $198/tonne and capex $92M
Concentrate average specifications; 96%C to 98%C; achieved thru simply floatation without need for chemical washing

the following SYR announcement, at the link, gives a good guide to how deposits have different flake sizes, which produce different products and sell at different prices:

http://www.asx.com.au/asxpdf/20120927/pdf/428zhstvnfsl7b.pdf

the SYR scoping study announcement shows how SYR hope to mine from different pits & deposits, to tailor products for different customers:

http://www.asx.com.au/asxpdf/20131118/pdf/42kxs91hnt6xcs.pdf

the MGY table below shows how they come to an overall 'basket price' based on the different grades of graphite they can produce: