Quarterlies generally only have an outlook for the next Quarter and a re-hash of the past announcements. We know there have been delays and it is annoying that there is a mild overspend.
I am not all that fussed about production although I understand there is a large fixation on it here. Even if they had produced buckets of the stuff, there aren't very many customers, if any, that want any size (so, again, forget offtake agreements any time soon).
These are very early days in this space and you wont (IMO) be making a quick buck any time soon. Customers need to be convinced of the worth of graphene, test the product, get the mix right etc before committing. I think that once it starts, the floodgates will open, but I would be surprised if that was before mid 17.
There will be plenty of room for everyone. TLG don't have any 'real' customers either, but they will find them for sure. SL graphite will always have higher margins, but doesnt necessarily mean they will make more money.
The 'dual' approach adopted by FGR is clever and solves the immediate supply issue required for potential customers testing. My guess is that there would be more available, if required. This is why I don't have a problem with the delays (and the Board said it would have no impact of the FGR's growth). I did like the fact that they are using the delays to improve the tenure and longevity of the mine(s) and it makes so much sense (to me) how they have turned a negative into a positive.
The testing of the units is the main key now and crucial to the Quarter, but from what I read that is almost a given. Again it wont translate into sales, but they will come and FGR will be in a perfect position to meet the demand
FGR Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held
