hahaha I've spent my fair share of time on the poker tables (way too much actually) and have learnt to spot a bluff when I see one.
I think the announcement is full of massive question marks.
"14,000 tonnes per year of natural flake graphite products"
If it just stated 'natural flake graphite' this would be great however, why mention 'products'. To me this indicates that the 14ktpa could be comprised of spherodised graphite aka 'product'. Thus, an off-take with considerable "terms and conditions".
Of course this could be viewed as a good thing - hey, Sojitz wants to build the processing plant and will pay more for this value add product!!! However, it also means building the production plant and the battery processing plant before the actual 14ktpa is sold.
This would explain why there was such a heavy emphasis on the "battery-grade graphite processing plant" aka "development of a downstream processing plant"... you even got a little Kibaran Sojitz branded flow diagram all the way down to global EV market!!
With the number of times Li-ion battery was mentioned, I thought I was at a hypnotist show!! A hint of desperation!!
As to why the SP of other company's hasn't plummeted in response to KNL supposedly securing Tesla and others would have to be this priceless beauty, "and is expecting to formalise further strategic alliances to tie down the remaining major supply portals outside of China" .... seriously Spinks, you cannot be serious!!
Are you trying to tell me that Spinks (who I do actually have a lot of respect for although I think frustration from the long wait is starting to twist his mind) believes that KNL is on their way to securing all 'remaining' major western supply portals... Does he even know how many there are or what this entails!!! It starts with:
- 2 year long testing/qualification periods with each end user
- end user requirements are evolving so quickly, significant R&D is necessary to even stay in the loop (besides for Sjitz's supposed testing, KNL's was last in the lab an eon ago)
- and the saddest thing of all - KNL proposes to build a processing plant in Tanzania that offers nothing new to what is already in China i.e. chemically treated graphite that has a huge environmental footprint. KNL is offering nothing innovate or progressive... simply, in it for a $ with little concern for the carbon footprint. I feel sorry for the Tanzanian people. I have traveled Tanzania from top to bottom and it is absolutely beautiful (well, Dar es Salaam is a congested mess)... and KNL wants to chemically process graphite in the backyard of where it wants to operate..... anyone familiar with the problems LYC had in Malaysia (the protests by people who care about their country crippled the company)!!!
If the world does switch to chemical free graphite which, performs better than synthetic and is cheaper (give it time), KNL's processing plant, if it does get built, will be an empty shed (a nesting place for pigeons). KNL will be totally left behind and completely out of the battery loop and will then simply be competing with the Chinese to supply the steel industry. Kind of ironic that KNL who has tried so hard to avoid the Chinese, looks to do nothing more than mimic their unhealthy practices in another part of their world.
KNL Price at posting:
28.5¢ Sentiment: Buy Disclosure: Not Held
