Ann: 5-Nines Graphite Purity achieved in Pilot scale sample, page-67

Yes and no. That resource might get a big upgrade and the margins will probably improve greatly, but you're dividing up the whole resource into a dollar value today and it doesn't work that way. Yes, I think it's worth at least $1 billion when extracted, over the whole life of the mine (which is 10 years?). But, I think it will be more like $100 million per year, in which HXG should be making at least $50 mil and running on at least a 3-5x multiple.

However, there is also the potential for a resource upgrade and improved margin for 5 N's and specific end uses (up to $15-20k a tonne). I suspect that a resource upgrade will probably add more to the life of the mine than the annual output and increase enterprise value more than annual profit. But it may push it towards a 5-7x multiple, where they could easily be making $50 mil to $250 mil per year based on the 5 N's quality.

Could be worth anywhere from $250 million to $1.5 billion.