Ann: March Quarterly Activities and Cashflow Report, page-20

"Prices will be negotiated quarterly between Syrah and Chalieco based on market prices which have​

prevailed in the Territory during the preceding three months".

This clause worries me a bit.

What's to stop the prevailing market prices in the Territory being manipulated way below world prices? Hopefully management has thought of that; can't imagine they wouldn't have.

The amount of infrastructure work that has been completed and SYR's focus on being a great corporate citizen derisks the investment considerably, but of course it's still in Africa. Seems the wet season has not impeded progress.

A quick thought on some raw numbers - this from the Feb 2015 announcement "Based on forecast prices from Benchmark Minerals, the forecast weighted average basket price of this Binding Offtake Agreement is expected to be USD 1,100 to USD 1,600 per tonne from 2015 to 2019

72000 tons to 88000 tons @ profit of
$600 ton = $43mil to $53mil = $A53-66mil @ 80c
$950 ton = $68mil to $83mil = $A85-104mil @ 80c
$1100 ton = $79mil to $97mil = $A99-121mil @ 80c

That's not too bad from binding sale number 1 - there's some "petty cash" from the Vanadium by-product too.