General Discussions, page-3852

Morning RiseAbove,

Cheers for the insight mate and you are on the money. Graphite is a very unique commodity that the majority of the traders / short termers don't quiet understand as it can be complex. Unlike Iron Ore or Gold or Lithium or Copper where "Grade is King", in Graphite Circles "Purity & Flake Size are King", Grade is still important important as it determines your total material throughput required to produce concentrate, but not #1 in terms of pricing of that concentrate given that premiums are based on flake size & purity.

The two key announcements that discuss your point are:

1) The PFS for the integration of Spherical Graphite Production - https://renascor.com.au/wp-content/uploads/2019/02/20190221-Spherical-PFS-Demonstrates-Increased-Returns-for-Siviour-1901390.pdf

2) The Battery Anode 2020 Material Study - https://renascor.com.au/wp-content/uploads/2020/07/20200701-RNU-Announces-Battery-Anode-Material-Manufacturing-Operation-2080333.pdf

Within the 2020 Anode study the company present Met Work Micronisation and Spheronisation Test Results for Large, Medium & Small flake size products which covers approxmiately 97% of Renascor's product (Excluding Jumbo). The recovery results on the large flake size yielded lower recoveries closer to the 50% mark which is one of the reasons why Large flake size is generally not suitable for PSG. I wouldn't be surprised to see RNU utilise Small & Medium Flake Size as feedstock for PSG (80% of total concentrate) and sell the Large & Jumbo flake. Given the work completed by Dorfner over the past 12 months, the purity of these large flake products will range between 96-97.5% purity.





Your 2nd point around other Graphite By-Products is also covered in the Previous Studies (Although these numbers are going to change considering the company will model a 60% recovery for PSG, instead of the previous 50%), this essentially results in More PSG and Less By-Product for sale to market. Both products have economic value, however PSG is likely to be +US$4000/t, whilst the By-product is ~US$600/t (Snippets from the Anode Study below).

I for one am very excited for the upcoming Revised DFS, given the changed metrics of the project and what this will mean for product streams, markets, Value for RNU i.e. IRR / NPV / EBITDA etc, most of what we are discussing atm is based on company announcements and further testwork that has been undertaken since the last studies, will be very interesting to see how this is modelled, exciting times ahead for the company IMO