General Discussions, page-8758

"A small Ore Reserve with a better flake size distribution can make better money, at least 2 times more than a powder product (small flake)""

Well lets break down the glaring errors you made in the above statement:
1) Small Flake is not a powder product, in the Graphite business "Powder is Amorphous" which can be a bundle of both fines and by-product / offcuts from downstream processing
2) Natural Flake Graphite as a Battery Mineral is targeted at a combination in todays market of Small + Medium and to a lesser extent Large Flake Sizes
3) Whilst the Compound Annual Demand Growth for Natural Flake Graphite is expected to be +25% per annum over the coming decade, this is nearly 100% driven by anode material requirements for Lithium Ion Batteries.

I.e. Small + Medium + Large flake sizes are going to see significant Demand Growth this decade. Whilst in comparison Jumbo + Super Jumbo will be in oversupply with next to no demand growth. Listen in to George Miller from Benchmark Minerals discussing how Battery Feedstock fines (Small + Medium Flake) will likely achieve price parity with larger flake sizes over the coming years as fines are in HUGE demand, whilst Jumbo is in oversupply.


If Renascor was planning on being a graphite flake producer only, I would be mildly concerned given the smaller flake sizing of the projects bucket mix (This was a huge reason why RNU was not seen as a Tier 1 Project back in 2019).

Alot has changed in the past 3 years and what was RNU's biggest weakness has now turned out to be one of the companies greatest strengths since deciding to head down the downstream Purified Spherical Graphite pathway. The main advantages of utilising Small Flake as a feedstock for downstream processing in comparison with say Jumbo include:
- Overall Higher Recoveries
- Significantly lower processing costs (grinding, shaping)
- Lower feedstock costs on todays spot flake prices

This is now beginning to emerge in the Spot Prices of Graphite Flake. Take the past month of March as example, the only Flake Size that dropped in Pricing was Jumbo (No Good for Batteries), whilst Battery Feedstock Fines continued to increase in pricing. As George Miller from Benchmark put it, Price Parity may be achieved this decade.

Small Flake Up 1.5%
Medium Flake Flat
Large Flake Up 2.1%
Jumbo Flake Down 1.7%

I Chuckle at all of the Graphite Mines with a large portion of the product mix in the Jumbo basket that a few years ago thought they were the bees knees ! With next to 0 demand growth over the coming decade for Jumbo, graphite demand being driven by the EV revolution with smaller fines (Small + Medium + Large) flake sizing the preferred feedstock due to increased recoveries and lower costs of producing anode material downstream, Id certainly be mildly concerned today if my Graphite Project was +30% Jumbo that is for sure !