I think we might have to wait until the finance facility agreement is solidly in place before any positive sentiment emerges for VXL. But it is looking more and more likely if they have upgraded the bridging facility to $5 mill.
On the other hand, they continue with wishy washy motherhood statements like "
Processed graphite above 95.5% purity has been transported from site to Valence Industries’ warehouse in
Adelaide.
Stock levels in each of the Company’s product grades will continue to be progressively built up to match
existing customer orders and export shipments will then follow."
They really have to stop that, and instead give us some real figures to go on. We know they struggled to reach 95% purity with the average at around 90%, so if they only shipped the 95% and above stuff, what happens to the rest? Does it get stockpiled for reprocessing when the plant is upgraded? Or do they have buyers for the 90% stuff as well? Given all that, and that production is at 50% or less levels, they might have only shipped a one tonne bag to Adelaide for all we know. Building of stock levels may take weeks to months to years before shipment, we just don't have a clue from the information here. I'm actually keen to know, that as they have a take or pay contract for graphite, is it also a "give or pay" contract with penalties for non-delivery? If so, VXL may have some bigger bills to pay in the near future. We just don't know.
