Good afternoon HongkongPhoohey, I’m more interested the fundamentals and longer term outcomes
With the plant now achieving 94 bags a day from 400 ton throughput is quite impressive…I earlier asked Sunrock for his thoughts on grade upside opportunity…
Achieving 94 bags in a double shift from 50% throughput during a period where the filtration system and dryers were not operating properly due to electrical issues is quite extraordinary…The IRR report shows a significant increase in value which may not be far away…It’s worth noting the value given by the independent report
The current sales being achieved from a blended sale product are very impressive…Western end user require a reliable supply outside of China. At the same time China has its own concerns becoming a net importer of Graphite and subject to a USA 25% import tax from 2025…Large flake graphite has only ever been produced as a byproduct and mining operations are closing reducing larger flake materials into the supply chain…
At the current real sale price being achieved place the project somewhere between 36-48 cents according to the IRR report. With the filtration and dryers resolved will allow for higher uptake of the backend which was only 16 bags short from DFS capacity stage 1
The grade upside is a huge advantage as demonstrated in recent weeks with 84% of required product being produced in a given day. Once the filtration and dryers are resolved expect even higher pricing to be achieved with sales super jumbo… These product range have not been produced at this stage and lower quality basket has been produced. +392290 up to 395590 products could be produced very easily once the sorting can be optimised. This will only occur when the drying is complete to stop what is referred to as clumping…The fines will no longer clump together with large and super jumbo material…Any product range will always have a small percentage of fines and other flake sizes but this figure is exaggerated if the drying process is not thoroughly completed…
Regards Croc
(20min delay)