My take is that Dinwoodle suggests SYR is able to soak up any
graphite concentrate demand - not all
CSPG graphite demand. Two different markets.
"
one must understand that the CSPG graphite that goes into batteries is very different from primary-processed graphite concentrate, which is typically what a graphite mining operation produces.
Alabama Graphite will only produce battery-ready CSPG We will not sell any graphite concentrate whatsoever"
He goes on to points out that ......... "
all graphite development companies are “flawed” in his opinion, in that their business models are predicated on producing massive, unsellable quantities of graphite concentrate at completely unrealistic selling prices
What is even more unrealistic than selling prices,” according to Dinwoodie, “is stated production targets — normally in the tens upon tens of thousands of metric tonnes per annum — graphite companies use in their technical reports. Do any of these companies’ CEOs truly believe they can place 50,000 tonnes of concentrate in a market that globally is estimated at 375,000 tonnes? And, even if that was possible, what would that do to concentrate prices?”
My take on that is it most definitely includes SYR's "
stated production targets", which of course is the grand daddy of all production targets, and at present
they also don't have all of their stated production target covered by offtake agreements —
meaning, a legally binding, take-or-pay supply agreement - the majority of their OTA are marketing agreements. If you read Industrial Minerals they suggest that supply contracts for graphite concentrate for 2017 are being negotiated currently.
http://www.indmin.com/Article/3647842/Graphite/Graphite-2017-contracts-showing-no-price-change.html
I did post this article a while back - you may have missed - it describes their whole process.....A
labama Graphite's Coated Spherical Purified Graphite for the Lithium-Ion Battery Industry
http://www.techmetalsresearch.com/2...raphite-for-the-lithium-ion-battery-industry/
