But you're just joining the dots between random bits of this strange research note to make up scary scenarios, which seems to be your favourite pastime.
My money is on this deal proceeding as planned, with some tweaking of the financial model to accommodate Tanzania's 16% free carry eg instead of the Chinese paying US$18m-$20m for 50% of the project, they pay 16% less for 42% of the project (ie US$15m-$17m) and the debt facility gets extended by a few $million to make up the difference. A ho-hum disappointment for the Armageddon spruikers.
China simply has too much riding on securing this new, cheap, external, high-quality graphite supply to walk away from the deal over a couple of $million. As every day goes by, the case for it proceeding is building. This came out a couple of weeks ago:
New Environmental tax to end era of cheap Chinese minerals
as a direct response to things like this:
Chinese pollution problems from graphite mining: Washington Post
plus they need our graphite for this:
The Fire Prevention Law of the People’s Republic of China has been promulgated
And Graphex is the only graphite company that China has seriously engaged with, investing substantially in DD and materials testing over the past 2 years.
Join the dots between these and see what you can come up with: Deal or No Deal?
