"To calculate the profitability of the project we also need to know the proportion of each of the grades that are being sold. In other words you could have a high average price for products of different grades but if the company is mostly selling the lower grades then the profit is far less than if the higher grades make up a bigger proportion of the sales. For example if 70% of the product is -100 and sold for $700 with the higher grades making up the other 30% then the company is not nearly as profitable as it would be if you reverse that, 30% low grade with 70% higher grades."
In an ideal world,your thoughts would be ,"perhaps" fundamantal.
However the Graphite market is an opaque one.
I refer you to an announcement from VXL,
"The sales have been made in a range of volumes and for a range prices that reflect the immediate commercial applications."
http://www.valenceindustries.com/pd...L-COS-ASX-20140429_VXL_Sales_Announcement.pdf
I would be very concerned if Valence gave away important information to potential opposition companies such as the real costs of production for each product segment, and sales prices for them.
Were not just digging it up and shipping it out to China, were value adding,moreover were at the first mover advantage,it would be corporate suicide to "open up the Pandora's box" ,you want to.
I'm more than happy with the $US 1,400 a ton number,and to hell with the nevawazzer potential opposition.
Raider
