If you paid attention to the way he was talking, heres the notes;
- Engineering and Procurement are underway. He said it, then quickly said they did announce something (they did a while back), I believe he was concerned about accidental price sensitive info. - Natural Graphite mine is cheap and paid for, which once underway should fulfil the requirements of the current offtake agreements. - The mine is fully funded, and getting the mine up is a derisking play. - They have accelerated their plans to build the mine (slide 25).
Their intention is to build the mine ASAP as they have the money. According to their own BAM study the cost is $405usd/t, and the price chart on slide 13 says the price is around $650usd/t. Around $15m USD p/y profit. Good, not great. I'd guess its better if they are able to get a premium.
So why not announce?
He also mentioned that the offtake discussions were all hung up on price, and the chairmans address mentions that companies want to protect their margins.
It's very clear that companies want to lock RNU into the current price long term, and RNU want to set a floor price. This is why DC is happy to wait a little for prices to move upwards, it will give him manoeuvrability with those negotiations.
In the meantime, I believe they can start the mine and will proceed with it - but they aren't going to announce that as companies will be listening and know RNU will have product they need an agreement for, therefore losing leverage in negotiations.
An aside he also mentioned a few times early 'safe and consistent supply' because they are in SA, which I think was a direct reference to SYRs trouble with mine shutdowns because of jurisdiction.
