Announcement?, page-52

I'm fairly confident that it's not a CR, as some have mentioned, due mainly to the fact that no-one has phoned me asking me for money, and usually that's a dead giveaway of a CR. By the silence from some other holders, I am betting that they haven't received any "money" calls either, although that can be all changed in the morning.

Tangible, I think you are on the right track. KNL management have a history of wanting to release straight to market with their announcements (unlike some other companies which issue a trading halt merely to announce that their receptionist is getting married and somehow that means the sp needs to get a bounce). This can occasionally leave them with a "please explain" from ASX, as happened in 2013 when they had to redact their initial scoping study announcement due to non-compliance with some technical issue around JORC reporting. As I said at that time, I'd much rather they release the info, even if it has to be redacted later, so that we (shareholders) know a bit more about the sort of things the company is dealing with.

Most particularly, anyone who has met Andrew or Robert would know they are very careful, and wouldn't have issued a release if they knew they had another one on the same issue to be released within a day or so. So my thinking is that the TH is due to an issue that has arisen since they released the announcement this morning. This could be a new issue (such as an off-take suddenly hitting their PO Box after 10am today) but I find that unlikely, and in which case the likely answer is that they had a query from the ASX that required a rethink about their "official" release, and in which case they didn't want misinformation affecting the trading while they issue an update.

Of course, I could be wrong on the above, and it's just my thinking, but I've put my reasoning in there in case anyone wants to draw a different conclusion. Regardless though, I'll reiterate what I've been saying since 2013 with a share price under 10c, this is a great company, and is one of the best development plays on the ASX, due mainly to the facts that they don't need to "find" any more stuff in the ground, they don't need to "find" any more buyers, the capex is low (graphite is cheap to mine), and these guys will be one of, if not THE, first new ASX listed graphite mines into production. (I'm excluding VXL as it's sort of an old mine).

My additional personal view on the NPV numbers is that people are arguing stuff that is a bit pointless at the moment. The calcs have to be put through a ringer to get them past the legal reporting requirements, but as someone who has funded a lot of stuff in Bankland, I can assure you that companies and funders work on two different sets of numbers, and it's necessary, and not illegal, dishonest, or underhanded. As an example, when I fund my developments, the banks and I all agree that we'll use the official valuation and official cost estimate in working out our feasibilities. But, we all know that a bank valuation and the actual valuation are usually very different numbers. My actual cost is also much less than the bank's appointed estimate from a 3rd party. The bank knows the final numbers will be better than we plan upfront, and their own records will back me up on that, HOWEVER, they still need to go through the proper process and play the game, and lend on the official numbers they are budgeting for, and not the likely actual numbers. This is no different, so arguing too much about the NPV calcs is a bit of time wasting, particularly when a single change can affect the NPV (such as debt cost, or discount rate, or opex costs, or sale costs, or inflation estimates, or payback periods, or a minute combination of all those changes).

Just know this, on a healthy margin, with a willing buyer, a willing funder, and a good management team, 40 ktpa is going to make a lot of cash relative to the current market cap. Throw in Merelani, and a planned increase to production of 100 ktpa in 5 years time, and the money being made will be astronomical relative to the current market cap. As investors, that is the best and most important thing to know.

If it drops to under 20, so be it. Use it as an opportunity to top up in a great management team and what will be an extremely profitable company.