Returned excellent results despite the plant not being optimised for Epanko material.
Testwork currently being conducted on various regrind mills for small flake sizes (<100 mesh) to increase purity levels by flotation to further enhance.
Cost and operating risk trade off assessed in light of increased operating risk of extra flotation steps against proven upgrading and established purifying methods at industrial scale.
Robust testwork at an industrial scale lowers design risk and optimises equipment selection.
“Epanko has the advantage of flexibility due to high in-situ grade and flake size distribution”. The graph on slide 12 is well worth checking out. Keep in mind that circle will grow by 2-3-? Times once the new drilling results are announced.
Maybe KNL is taking a swipe at the market; “Banks won’t lend without realistic pricing and offtake partners”.
Kibaran has made no “heroic” pricing assumptions in base case basket pricing assumptions.
Realistic pricing has been used without further value capture of value added products (i.e. spherical graphite).
Offtake is essential given there is no transparent intermediate market with acceptable payabilities for seaborne spherical graphite feedstock.
Epanko base case pricing does not include value capture for sales into high growth markets such as spherical and expandable graphite.
Funding;
Mandated debt finance providers – KfW-IPEX Bank + Nedbank. (KfW-IPEX Bank + Nedbank are happy with KNL using their name, on a regular basis! Sounds like funding is in the bag).
KNL Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
