Hi
@Romann,
ThyssenKrupp wants a
long term partner to secure its graphite requirements.
Their behaviour re-enforces this:
-
23rd October 2014: ThyssennKrupp signs Letter of Intent for 20,000 tonnes of graphite from Kibaran (
10,000 tonnes from Epanko & 10,000 tonnes from Merelani);
-
25th August 2015 - ThyssenKrupp executes 20,000 tonne offtake agreement with Kibaran (
20,000 tonnes from Epanko).
They recently
increased the amount of graphite that they're demanding from Epanko by 10,000 tonnes in August of last year. This suggests to me that the partnership between Kibaran and ThyssenKrupp is strengthening not weakening. And this is good news because both players are looking to the long term for an enduring and mutually beneficial partnership to drive revenue for Kibaran and secure graphite supply for ThyssenKrupp that diversifies their supply base.
Furthermore, they've no doubt assisted behind the scenes with the
German Government Loan Guarantee which is proceeding on schedule (we've received
indicative terms and conditions from KfW-IPEX bank, and things are proceeding
normally for the UFK process).
It's true that our share price is dependant on the relationship with ThyssenKrupp (on the upside as well as the downside). In my assessment, this is a solid relationship/partnership and I don't share your concern about the contract's strength because ThyssenKrupp is a long-term partner more focused on securing supply than any other factor.
Furthermore, our customer base is likely expanding now beyond ThyssenKrupp & a Europeran Graphite Trader to include
Sojitz Corporation from Japan; so we're not completely dependant on ThyssenKrupp either, 50% of Epanko's supply is diversified to other players.
Thanks for your wishes of good luck, all the best to you with your future endeavours.
