Hello. Lets try to unpack today's announcement.1. 1st EGR must...

Hello. Lets try to unpack today's announcement.

1. 1st EGR must build a mine, which will probably cost at least $US150M probably more.

2. This mine may produce 73,000 tonnes per annum of graphite products.

3. 33% or 24,000 tonnes of this graphite (the "fines") may be suitable for spherical graphite.

4. EGR today announced processing 20,000 tonnes of feedstock (which i guess is "the fines") for what i guess is 12,000 tonnes of spherical graphite.

5. Therefore the remaining 53,000 tonnes can be sold at higher graphite prices.

6. Today announced a cost of US$419/t to sphericize the natural graphite.

7. The natural graphite OPEX is estimated at US$585/t.

8. Total costs = US$1004/t.

9. Current revenue may be US$2000/t.

10. EBITDA = US$12M. for 12,000 tonnes of spherical graphite.

11. Currently per BKT the fines natural graphite sells for break even at best.

12. Therefore, today's scheme might possibly add $12M EBITDA.

13. CAPEX is US$58.6M.

14. In column 1 below is my estimation of the mine financials.

15. In column 2 below is my estimation of the mine plus spherical financials; where the spherical is part of the govt profit share & taxed.

16. In column 3 below is my estimation of the mine plus spherical financials; without govt profit share & tax.

17. I guess at 66% debt funding, the equity component of the CAPEX capital raising might be done at around 14 cents per share.

18. Long term market cap for this stage 1 is guessed at A$588M.

19. Note: the CAPEX below is close to EGR's, which appears much lower than BKT's.









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