Ann: Production of Battery Specification Anode Precursor Material, page-87

DoctorFouad yes it is a fact that Etablissements Gallois S.A. today has 150,000mt of annual graphite concentrate capacity. See details take from their web site below "annual production will then be around 80,000 tons in site No.1 and 60,000 tons in site No.2." Currently they are supply large volumes to China. Yes we all agree they have much lower inland freight cost to the port in Madagascar vs Syrah. They also produce much higher % of Jumbo and Large flake thus their average selling price is higher the Syrah. Currently the graphite market has too much over capacity thus Etablissements Gallois S.A is not selling today 100% of their 150,000/mt of capacity.

As for Brazil they mine some of of the lowest cost graphite mines in the world.Currently they operate 3 different mines and all 3 are profitable. yes they also then produce and sell valued added natural graphite thus competing with companies such as Asbury Carbons, IMERYS Graphite & Carbon, Graphit Kropfmuhl and others which added to their profitability.

The question investors need to ask is why are privately owned graphite mining companies successful while publicly owned graphite mining companies like Syrah are not cash flow positive? Is it because they lack graphite experience? Is it because they have higher overhead costs related to all the regulations and requirements of public shareholder companies. Yes one major issue Syrah has is extremely high inland transport cost but they and investors knew this from the beginning. Syrah management at the time projected however their cost to produce graphite concentrate would be the lowest in the world but fact is to date Syrah has never been able to produce graphite concentrate at the cost they projected and at same time Syrah has note produced the % of jumbo and large flake they projected thus Syrah average selling price is base on around 90% fines and only 10% jumbo and large flake. Thus Syrah is forced to sell mostly fine flake at market prices below their production costs.

The natural flake graphite mine of Etablissements Gallois S.A. is located in the northeast of Madagascar, in the province of Tamatave,. The mining operation was created in 1901 by the Gallois family, who started to produce graphite which was exported to the United States and Europe. Along with successive global industrial revolution, the Gallois mine has never stopped producing over the past 120 years. Because of its specificities and special quality, Gallois graphite has always been considered as a first choice by the global carbon industry. In 2016, the mine was taken over by a new operator who made significant investments to replace outdated production equipment with the most advanced technology. Annual production increased from less than 5,000 tons to 60,000 tons in 2017.more
The Gallois mine covers 280 square kilometers, the deposit is all formed by weathering. The average carbon content of the ore is around 10%, which is quite rare in the world. Opencast mining makes operations easy and safe, the carbon content can be easily increased to a high level by simple floatation. A team of Australian geologists has already estimated 240 million tons of graphite reserve while less than 1% of the total area has been explored.
Madagascar, an island country with stable political environment, has a mild climate throughout the year with a temperature of 15-35 ℃ and has rich water resources. These conditions enables the mine to produce uninterruptedly all the year.

There are three major mining sites referred to as No. 1 (Antsirakambo), No. 2 (Marovintsy) and No. 3 (Ambalafotaka) sites, currently only No.1 and No.2 sites are being exploited. In June 2020, the implementation of the new production lines with modernized equipment will be completed, annual production will then be around 80,000 tons in site No.1 and 60,000 tons in site No.2. At that time, the Gallois mine will be the most productive one in the world.
The strategic location of the mine makes logistics very convenient, the site No. 1 is situated only 45 km away from the international port of Tamatave.
We are currently marketing two brands MADA1 and MADA2 so named according to their origin. Since the mine went into operation, Gallois graphite has broadly been used in applications such as refractories, metallurgy, crucibles, sealing materials, brakes, pencils, and so on. As indicated by customers’ test in their production, the MADA1 graphite has natural specialties and high quality beyond comparison: it has a perfect crystalline structure, high density and in ash a very low content moreof substance unfavorable for purification. It is especially good for manufacturing spherical graphite for lithium battery, expandable graphite, advanced refractories, man-made diamond and high purity graphite for military and aerospace industry. With the development of new technology in carbon industry in recent 20 years, the Gallois graphite has been used in many new applications fields.
After renovation and upgrading, the mine is now entirely computer-managed. We take samples and trace the data all along the production process to guarantee uniform and stable quality in every bag of final product. Whatever the quantity ordered, we can supply customized products to meet specific requirements of customers and ensure the stability and reliability of their raw materials. The graphite, loaded in containers, can be exported to any destination with a transit time ranging from 10-60 days.
Etablissements Gallois S.A. supply natural flake graphite with carbon contents ranging from 80% to 99% and flake sizes of +32mesh, +50 mesh, +80 mesh, +100mesh, +150mesh and -100mesh.