Confronting Dislocation in the Graphite Market, page-13

One thing that strikes me in all this analysis is the comparability of KNL to the various Lumberjacks -Focus,Northern,Flinders,Mason etc. The article is 'arguing' re the dislocation between TSE and ASX listed shares with an inference that ASXers are bloated,with unreal expectations, bubbled, have excessive production forecasts in supplying 100's of kts to the China Dragon. The Ben Kramer Miller contention.

Yet KNL is in more of the TSE parameters than ASX Super Pits. Only difference I see between KNL and their Flagship Flinders a current Producer for Europe is KNL proposes first up some 40kts production while Flinders is constrained by Gov't Regulation to only do 10kts.

Oh Flinders can do more Production but first they'd have to get further gov't approvals. Get their Special so precious Take or Pay Off Takes, I'm tagging these Blair Way Off Takes. Ones for End Users probably on a 3 month delivery schedule and probably flat out for being over 1000 tonne, 4/5kt in a year.
For an OPERATING Mine feasible run of business BUT for a PROPOSED Mine unviable.

Take or Pay Contracts are only enforceable when the Mine can commit to PROVIDE by a near term date ie 3months NOT 18months a specified grade and flake size etc to a End User for a determined set $ price by or on a Specified Date near term. End User Takes it or Pays for it.
If either the Plant or the End User fails to perform Delivery or Paying?
Enforceable [by Court Decision, hey @tobyjack

So IMO these lumberjacks banging on about Take or bloody Pay Offtakes are the Only Criteria are being a bit 'misleading'. Do you follow? A Mine Proposer can not enter any contract with financial penalty clauses for Non Delivery in a 3 even 6 month timespan.

KNL "suffers" from comparison to it's other East African ASXers- The Super Pits especially in Canadian Lumberjack Analysis of the Natural Flake Graphite Sector Supply and Demand, The Market 2016/22.
Yet I look at these graphs and the argument of these commentators and see KNL fitting right in, bettering, performing, leading over their 'Market Darlings" Parameters.

Just that KNL aren't paying these blogs ca$h for Comment

Anyhow KNL BFS and Spinks Scenario for Offtakes and Financing for a Proposed 40kt initial production
Plant should leave the Blair Way Flinders Floundering.



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