Whilst it is true that the graphite industry is opaque re...

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Shellbell

7,691 Posts.

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03/11/22

13:26

Post #: 64569010
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Originally posted by cartex: ↑

Where is the substantive marketing section outlining in detail the specific products by market / application? Demand for each market / application to support the DFS? Two or three pages is substandard at best.

You need to provide to investors a cogent and viable strategic pathway to commercial viability, longevity, and sustainability as a graphite producer and not a few bullet points over a couple of pages in the DFS w/ brief descriptions.

An in-depth working knowledge technically and commercially for the applications and target customers is required and not relying on third party marketing firms who have limited knowledge of the graphite industry.

An important question should be asked of any new and current producer of natural graphite outside of China, would they divulge pricing they have agreed to in confidence, to a third-party marketing firm so they can use and disseminate to the public and ultimately the competition?

The answer would be a definite NO! This begs the question as why new graphite products rely on biased, unreliable pricing FOB China?

The graphite industry is highly competitive and why there is little to know public information on graphite metrics or pricing (except quoted FOB-China) and new project regularly cite third part market firm unreliable pricing and industry data. Keep in mind the graphite shortage narrative has been in the public domain since 2013; each year claiming of imminent graphite shortages and has yet to materialise.

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Whilst it is true that the graphite industry is opaque re pricing as there is no spot price for graphite per se, that's not to say the pricing in our DFS is not realistic. The reason for graphite being opaque is due to the highly customised / product specification of each product application. However, I think that you are being overly critical given that the BEM DFS is not just based on Battery Minerals Intelligence for pricing data and that the basket price is also based on forecasted prices for 2024 and not beyond that.

And, there is in al likelihood that European prices will be higher than those figures published by the Chinese. OEMs will be prepared to pay a premium for ESG-compliant product also.

Last edited by Shellbell: 03/11/22

BEM Price at posting: 9.4¢ Sentiment: Buy Disclosure: Held
8 Upvote

5 Great analysis

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