Graphite Market Conditions / Large Flake

Interesting announcement by WKT on Graphite market condition. Extract below is from the announcement:
"
Recently, announcements regarding the state of the graphite market in China have led to significant
speculation and general negative sentiment about the state of the Chinese graphite market.
The Company has, through its offtake partners and marketing agents in China, followed up with its own
enquiries about the general graphite market in China and has concluded that the “sudden and material
decrease” in spot prices for all flake sizes in China has not occurred as stated.
The Lindi Jumbo Project contains only 25% of the finer product suited to Lithium Ion battery manufacture
and which is the most commonly produced natural graphite flake size in China. The domestic market in China
remains sensitive to over-supply of these products while the market for larger flake sizes remains robust.

The Table below represents Chinese Renminbi prices for various sizes of flake graphite concentrate at
95%TGC as published daily for the Chinese domestic market by ICCSINO for 12th September and two months
earlier. ICCSINO is a market intelligence periodical based in Shanghai, China and owned by Shanghai Xinluo
Network Technology Co. Ltd.

The different US$ spot prices for most categories remain in line with currency depreciation over the period
of around 3%. In the case of the 100-mesh size (195) which is generally used for battery manufacturing, the
drop in price is outside the ranges of the currency effects and can be ascribed to short term oversupply in
the market. The large flake product of 80-mesh (895) has increased in price significantly despite the negative
effects of the currency depreciation. Lindi Jumbo will produce products in the 3295, 595, 895 and -895
categories.
It is important to note that the ICCSINO prices listed above relate to industry minimum pricing specifications
for flake graphite concentrate at 95%TGC, which typically require a product to have a minimum of 80%
compliance to the size classification. Substandard products, either by grade or size compliance, will receive
prices that are adjusted lower according to the “out-of-spec” range.