Producing 19.5kt of AAM from ~22kt of flake graphite concentrate is a fair effort. I think that's TLG's biggest risk. I've always believed TLG will get the mining licence and financing. Not as easy as first thought but TLG will get there. Companies generally do and it is a strategic project.
There is also the possibility that stage 2 expansion is greater than 104ktpa, as many times now Mark has expressed that they've underestimated what demand would be and that they might revisit the scale of Niska with another scoping study. This doesn't make sense. Why would you produce more flake graphite than your AAM plant can handle unless TLG want to sell it. I've read no indication TLG want to sell flake graphite on the open market. Sounds like a flowery statement for the punters.
Besides, I thought the mining licence was only to mine 104kt of dirt. Wouldn't they have to go through the whole process again to increase it?
TLG Price at posting:
72.5¢ Sentiment: None Disclosure: Not Held
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