Ann: Syrah Sales and Marketing Update, page-42

@Graphite,

And it could be of course that with all these new mines opening up and where others are expanding they are keen to offer a price -any price - to get their foot in the door, because they know that from 2018 onwards there is new player with the lowest costs and a product at virtually any specification level and any quantity required in the market place. The SYR graphite offering is clearly a threat to any marginal or low quality producer - no wonder they want to bolt in low priced contracts - just to try to stay alive I would suggest.

But alternatively if you have followed the comments of the SYR CEO they will not be flooding the market - they will be producing to their known market demand which in this first year of production is of the order of 160- 180kts. I would also expect that now that SYR have an operating mine there will be new approaches for product - and goodness me just last week they made this announcement -

"Signing of a binding three-year agreement with CS Additive GmbH & Co (“CS Additive”), a leading producer of specialty carbon and sulphur products, for a minimum of 6,000 tonnes in 2018, with volume increasing to 2020."

Whilst this is not huge I suspect it is a direct outcome of the mine commencing operations and proving it can make good product. There will be more like this I have no doubt.

With respect @Graphite I think you are taking a very narrow view on the capabilities of the Syrah mine and the management of the Company.

redgum