1973 is long on colourful phrasing and ominous pictures, but woefully short on facts. He appears to have not bothered to actually read any SYR announcements in the last year or so.
Contrary to his claim, Syrah already have contracts in place with Marubeni and Morgan Hairong, for well over 50k tonnes of coated and uncoated spherical graphite per year.
1973 also states that Balama ore is "low-grade", and "second-rate". Interesting. Especially given that Syrah will not be mining any ore of less than 19% graphite, for at least the first ten years. Perhaps 1973 has forgotten the graphite content of the Nachu orebody, controlled by the company in which he has shares. What is it again? Oh, yes. 4.6% graphite.
Well, if 19% graphite is "low-grade", and "second-rate", where does that leave 4.6%?
That is exactly the kind of difference that Credit Suisse refer to, when, in speaking of "lower grade explorers aspiring to be producers", they say:
"Nothing beats grade and strip ratio"
For a long time, 1973 has been attacking the use of acid in the final stage purification of graphite to battery-grade, proudly touting that his company does not use acid, merely flotation in purification. But does that remove all impurities? What is it going to cost Samsung to recall and replace their entire new line of Galaxy phones? Is any major company ever again going to cross their fingers, and play "You Bet Your Company" on the hope that there are no contaminated flakes in their batteries?
Now, of course, it is becoming apparent that, again, as CS state:
"There appears to be an absolute requirement by ex-China users for chemical purification of all graphite".
And:
"End users appear to be contractually requiring chemical purification to remove this hazard".
Finally, it's very significant that, in all 1973's attack on Credit Suisse and myself, he has not even attempted to respond to a single one of the key points made in my post. Which simply confirms the accurate and careful, professional analysis which Michael Slifirski and Nick Herbert have presented.
Far from being fluff, this report is well-analysed fact. And 1973's reaction shows that, for him, it is indeed a bombshell.
Cheers,
Prime1
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