Hi oxxa23 Just replying to this post so that apples can be compared. Firstly great to see GPX get a kick along today and with demand and price tension due Chinese legislation and subsequent closure of Chinese mines.(Price tension= better prices a price makers market)
Please view this as being objective and to create discussion....The key objective is retain value.Which flake size attrition process and enables the best value and target market?
From today's announcement it appears that GPX are chasing a different target market where one offer's better value than the other.High flake size is important but it also achieves a different value by higher purity. There is a different target market...
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Expandable Graphite pricing (IMX) Jan 2016
According to existing manufactures of expandable graphite products,higher end expandable graphite products range in pricing from US$4000 to US$ 10,000 per tonne depending on the quality and the end use.At the lower end of this range are gaskets,seals and other products used in the manufacturing industry where the expandable graphite been produced from large flake graphite between
92-94% TGC with high expansion rates.
(GPX)
The upper end of this range is graphite foil and paper produced from high purity
(95-96% TGC),coarse flake graphite with high expansion rates.At the extreme,high purity,high expansion graphite capable of producing<3mm graphite foil could fetch up to US$50,000 per tonne but this requires the application of highly technological processes.
(WKT)
Expandable graphite-based flame retardant insulation foam currently sells for US$2650 per tonne.
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It should be noted that WKT graphite does have 850 Microns compromised to obtain maximum value with a higher level of purity 94-97% with off set of slightly reduced flake size retention.
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To better understand value it is also important to run the feed material thru a plant and see what you are left with per tonne processed .The economics change quite considerably from higher grade to lower grade with required plant size implications for capex and Run of mine cost.
To value a basket price distribution is only one factor among other points of difference that complicates true value in assessing the mine value.
High grade is king in flotation technology but there are many considerations to name a few and the end user market that is targeted.
- High grade TGC from surface for selective mining
- Purity range 92-94% less value
- Purity range 94-97% higher value
- Flake size retention with flip side for higher purity
- Depth of mining
- Recovery
- Value of sale basket
- efficiency
- Capex
- Opex
- Sales off-take
Deliberately leaving comparison numbers from this post as already quite large
Croc
(20min delay)