I disagree on all counts. First FGR has achieved much, none of which has been company making. All the way from Best Battery to now. If you like sleep walking continue, but if you dare to understand the state of SL, and you were a cement company, you might just have a few questions. Especially if you read Far East Capital to find you have 22 other competitors for a product relying on an economically failed country in full blown riot.. All of the 23 apparently were undertaking tests using FGR graphene.
The next question from them, have we wasted time and money? Is there going to be a switcheroo to some other supply source. The word used will be risk. If not handled well and fixed fast, reputational damage occurs, then you are really on the nose..
I always thought it was never a good look if I recall correctly, that FGR was buying hand-picked graphite for $2k/tonne and offering graphene to market at $150k/t. Pretend you are SL for a moment. Its not as if FGR has the field to themselves either. Local boys Ceylon Technology you might expect might be more favoured locally as a buyer. I recall 500 tones being about $2k/t about $1m. C.T pays currently about $2.4k/t
Regardless of riots, the graphene is still in the ground and not going anywhere. Don't be too complacent though - China can come in among this turmoil and get their pound of flesh, which they are owed BTW, and the window is permanently closed. On that front, SL graphite would be low on China's to do list given bank runs, corruption everywhere and the virus related stupid political decisions hamstrung by the "don't lose face" rule.
FGR Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
