No doubt that the hydraulic mining process is a company initiative (given Tim's experience across a range of commodities including coal and in ) but I doubt that it's been without collaboration with Urbix, though, Stevo. Please see page 8 of the Sept Qrtly Report:- Consideration is also being given to recent corporate developments in the signing of a strategic MOU with leading downstream graphite processor Urbix ResourcesLLC (Urbix). This has potential to significantly improve not only the final concentrates produced from Graphmada but also improve the quality of feedstockfor the Company’s long stated aim to construct and operate an Expandable Graphite Plant in Madagascar. Yes, it does refer to "final concentrates" and "quality" only. However, with the integration of the innovative technologies that the Urbix JV brings to the processing stages, any reduction to FSD at the mining stage may likely be negated by any pricing differential. That statement, of course, is just Shellbell thinking aloud.
Whist mining and processing are two different stages, and Urbix specialises in the latter, I don't see the two being totally divorced from one another in regards to Urbix's input. In fact, they are synergistic. End product pricing is determined by flake size and fixed carbon grade. There is such a diversity of end-product types requiring such varying FS/FC specs that maybe compromising on FSD is an acceptable consideration within the equation.
Who knows? The company should know but I am sick of trying to get into their heads, Stevo. What comes out of their mouths and what comes out in Anns are the same but it's what's in their heads just seems to be an unattainable mission I am afraid. And, shareholders shouldn't need to do that, "try to get into their heads". Too many guessing games and too much BSMarketing = a SP of 0.6c
Does Tim even know himself whether the proposed hydraulic mining process will be to the detriment of FSD or is the resource itself the next "pilot test"???
The other questions that remain open for me are:
1. "For how much longer are SH going to be treated like mushrooms and pawns in this grandiose agenda of theirs?"
2. "Have we been treated as mushrooms because the company is being used as a guinea pig a result of management inexperience in producing graphite or as a result of a directive to use the Stratmin mine/plant (regardless of its viability in the short term to derive immediate monetary value) as a stepping stone to bigger and better things?"
3. "What is the company doing to restore trust and fix their reputation in the market?"
4. "For how long has the company known that the recommissioned plant is not capable of double the current output and was, therefore, never going to be profitable?"
The way I see it, Stevo, the company's reliance on the Urbix JV is obvious. Whilst Urbix could be the company's "saving Grace", one needs to take into account the fact that Urbix is the one with all the money and not us!
To further support my opinion that Urbix probably has collaborated with Bass on the proposed hydraulic mining process is the following statement on Page 9 of the Sept Report:- Bass are in continual dialogue with Urbix and look forward to updating the market soon as to its progress.
Several trips have been made to the US by key management personnel and directors this year as well.
Don't get me wrong, I think desperate times required desperate measures. The proposed upgrades, overhauling of mining methods and other modifications are not only necessary but could be transformational for the company in getting it to the next production level and status within the industry (if successful). I just think that it has come at a huge cost to SH and the reputation of the company. They really needed to achieve profitability first.
BSM Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
