Hi Potchip, some informative points...Is someone trying to convince us the project is no good...?
Good luck with that...Shareholders are finally starting to wise up across the road...!
The economics of Lindi is heads and shoulders above the unfunded projects... The future direction of Chinese production will be a significant factor in determining where graphite prices go. Traditionally, Shandong Province was the centre of graphite mining in China but its production is declining due to the depletion of ore reserves and stricter enforcement of environmental regulations.
The market for large and XL flake graphite is much more robust, in part because of declining Shandong production butalso because expandable graphite is the fastest-growing market along with LiBs.Expandable graphite is principally made from large/XL flakes. It is usedin thermal management for consumer electronics and many industrial applications, including heat and corrosion-resistant gaskets and fire retardants. The lattermarket is expected to grow rapidly as the use of brominated flame retardants is phased out or banned. Fuel cells and flow batteries are also new andpotentially significant markets for expandable graphite. Also, the steel industry isa significant user of large flakes and its recovery will put additional pressureon large flake prices.
Bench Mark Minerals is not indicative ofWorld Consumption and supply...End user tell the real story
Benchmark minerals have a market size at 50,000 TPA for expandable graphite material as not all sales are registered...China alone's annual production at approximately 70,000 TPA
Annual Chinese demand for expandable graphite is approximately 70,000 tonnes. China only produces 25,000tpa of +50 mesh flake and the balance is made up of less desirable +80 mesh flake.The demand for expandable graphite with very high expansion rates isgrowing even more rapidly and this requires +32 mesh flake graphite. There is currently a shortage of both +50 mesh and +32 mesh material inChina as there is in the rest of Asia as well as Europe. China has now startedto import +50 mesh concentrates from Madagascar.
In short to medium term, the graphite opportunity is clearly in the large/XL flake markets, which are high price and high margins with supply shortages. Longer term, new western sources of small flake production will be required to meet the expected growth in the EV/LiB markets and provide security of supply.
From BMI "A major source of natural graphite outside of China in the short term is Mozambique, which currently accounts for 10% of mined graphite, rising to 14% in 2030 according to Benchmark’s Graphite Forecast. Benchmark forecasts 96% of Mozambican graphite in 2025 will be mined in northern Cabo Delgado province which, since 2017, has been the site of attacks from an Islamist State-linked insurgency group.In June this year Triton Resources, an Australian-owned graphite miner, said that two of its staff were killed after an attack by insurgents. Syrah Resources also suspended personnel and logistics movements on a primary transport route in the province following the attack. Nearly 70% of graphite mining in Europe took place in Russia and Ukraine. Although Volt Resources resumed its Ukrainian operations earlier this year, the war could impact the stability of Europe’s graphite production. Madagascar is another alternative graphite supply to China, accounting for nearly 10% of the supply today. However, the region suffers from cyclones, one of which halted operations at Tirupati Graphite’s mine in the country earlier this year. Climate change has made these cyclones more severe and it is expected they will get more destructive in the future.
"Brazil, Tanzania, Canada, Australia & US are excluded from their list of high risk...
Great to be building a mine almost complete offering free cash margins of US$1200 per ton product...
(20min delay)