Hi cartexI’m not sure what you mean regarding ARCH’s arrogance....

Hi cartex

I’m not sure what you mean regarding ARCH’s arrogance. It seems to me that they are really the only party involved who is capable of ensuring that this company continues. I would have thought shareholders would welcome any further contribution they could make.

When they listed in 2021 and purchased the Chilalo project from Marvel Gold they were probably the graphite company that you would back to be the first and most successful new graphite processor. They took over a project already at DFS stage, signed binding offtakes for their coarse flake with Yichang Xicheng and fines with BTR, planned downstream processing in the USA in conjunction with BTR, had financing prospects in hand and the Tanzanian government fully supportive.

The graphite market deterioration in 2024 slowed everything down, although they were slow to realise the implications. Walkabout Holdings' failure, whose Lindi Jumbo mine is an adjacent project, was the event which finally crippled their prospects and after that they became rather dysfunctional personnel wise.

They had top rate experienced people involved - Phil Hoskins as CEO had been involved through Marvel since 2014 and Michael Bourguignon had been project manager for Syrah during the construction of Balama but after they both left there was no continuity at all, now none of the directors or management have been there more than six months with the exception of Stephen Deniss the Marvel Gold board nominee who has been involved since September 2023.

With all financing prospects probably evaporated and no cash remaining they are completely reliant now on ARCH Sustainable Development Fund, their principal shareholder, who have inserted Paul Atherley as chairman and seemingly taken control. It remains to be seen to what extent they are prepared to support the company into the future. As well as their 25% shareholding they paid $2 million for a 1.7% royalty stream so probably have some incentive to continue involvement.

I don’t know what to make of their farm out agreement for the Chicundo copper, lead, zinc prospect, payment for which is keeping them going short term. Although it is not mentioned in that announcement Robin Birchall, the previous EV1 chairman is now the CEO of Oscilate PLC who are now responsible for developing Chicundo. Oscilate is an investment company, with no obvious mining experience whose main current investment is in a psychiatric care enterprise.