well said
@SonOfTug
- graphex and the chinese met with the tanz govt.... afterwards the gave the timeline of March for impending Chinese signatures (from 05.02.18 announcement).
- 9 days later in the schroeders conference investor presentation they add:
"Graphex continues to receive strong interest from alternative financiers"
This line was not in the investor presentation for 121 conference released on 05.02.18....
Therefore, not only are the chinese keen, we clearly have external interest outside of the usual JV discussion parties....i highly doubt anything changed with the chinese in these 9 days... i think this could very well be plan b....or c or d.... who knows... certainly management have always thought they would be negligent in their duties to not be thinking of plan b etc should things ever not happen with the chinese...
my very uneducated thoughts on the tanz matter are that things are far from the doom and gloom of 50%, particularly for 99% of miners in the system or planning to enter....the majority will lose their 16% stake only. but, what has undertaken since june will no doubt stop some new entrants looking at tanzania as a starting point... as denver says, it would be hard to justify spending $10m in exploration there instead of Mozambique or Australia. However, it certainly doesn't mean it's dead in the water for new participants... It will be purely risk vs reward.... the few that do dare may well strike it very rich...
What i think we will find is that there will be more and more repeat miners in tanzania... for example, graphex in 18 months may be at the start of $40-$50m free cashflow per annum... they can afford the risk then. i am sure there will be successful companies (either in tanz or not) that will decide to spend money on further exploration then, when making money, as the cost to them of failure with say spending $10m is minimal and they wont need to source the cash... whereas a start-up, well, for the risk they will find it far tougher to obtain the cash to spend... therefore, i think either successful mining companies in general, or those successful in tanzania already will be the ones to spend money there... not the juniors... some will, but, i think we will see the numbers decline a little.
to go back to graphex again, the chinese absolutely value our in country experience and relationship with the government and export processing zones authority, this will go a long way towards getting them signed up, along with the fact they absolutely need the expandible graphite.
not long now... march tomorrow... and a very bullish tanzania government being quoted across a lot of asx companies (in tanz) that they are making rapid changes and clarification on the regulations for the better.... we will see business full steam ahead for GPX and many others very soon i think. but, gpx, with mining licence along with effectively finance and offtake done (should the tanzanian's clarify regulations agreeably) are in the box seat to be one of the first ones out of the ground.
