Hi Steve, don't think there is any requirement to process it...

Hi Steve, don't think there is any requirement to process it through the SEZ to be able to export it, one just need to process it locally, whether it be in a SEZ or not. Perhaps @cazz69 could clarify, seems to be the most informed on the subject from what I can work out.

Seems to make economic sense to do it via the SEZ though if it's allowable as will then get those tax breaks, think it was no tax for ten years or something on the profits. One would imagine the bulk of profits will be in the processing to increase purity, thus not a lot of tax will likely be paid on the straight mining portion, so seems a bit contradictory to what the President seemed to be trying to achieve with his new policies and regulations, but if it's allowable then I suppose that's the way to go.

On your question of "How can you claim to have an operating margin of $1,750 per tonne and it not be financially viable?" well firstly as Slogger pointed out they used the term "not financially sensible". What the difference is I am a bit unsure, perhaps @Slogger could explain that point further.

Anyway as I say my understanding of the BFS was that it was a solely reliant on concentrate production/sale model. So if you agree with that then perhaps you will need to contact the company to see if you can get a more detailed response as from memory I don't recall any announcements about these studies that were undertaken, their conclusions and the resultant actions required, to I assume make the project "financially sensible" so without access to this information I am unable to assist answer your question.

Do you agree the BFS was solely reliant on production/sale of graphite concentrate? as perhaps my understanding is incorrect, though I can't think of what else they would be referring to.

However I do point out that the not "financially sensible" finding would largely vindicate a lot of concerns that have been raised on this forum re the BFS, so perhaps the company has been listening to some of the concerns, if so, well done to those raising such concerns and well done to the company for listening.

Anyway from point 5 of the announcement we have

"Magnis’ view was that the potential lower revenue pricing in the market would make any strategy or operation reliant on solely producing graphite concentrate would not be a financially sensible option. Therefore, the Company has been very proactive in optimising the significant advantages of Nachu with its natural large graphite flake size and the ability to easily process the graphite to higher value products. It is these higher value products which will deliver the best value to the shareholders. "

So it's good to see them being proactive to deliver the best value to shareholders. I will be quite interested to see a detailed feasibility study of these "higher value products" if they release one so we can all see what the expected benefits are. I don't recall seeing any feasibility studies to date on them, have you?

Anyway, Thankyou for your time and if you do contact the company hopefully you can keep us updated on any response to your question "How can you claim to have an operating margin of $1,750 per tonne and it not be financially viable?" , but just use the word "sensible" when you contact them.

Thanks