If jumbo flake graphite will no longer command a premium price over smaller flake graphite in the future (as is asserted by some posters), then why did Sinoma and Sinosteel enter into 5 year off takes with an option to extend for an additional 5 years with MNS? If jumbo flake graphite were to no longer have an advantage over smaller flake graphite in terms of applications in the future, you would think that Sinoma and Sinosteel would have been better off entering into off takes with other graphite companies with lower production costs than MNS (such as SYR). That is, you would expect the equivalent graphite purchased from these companies to have a lower purchase price than MNS, given their lower production costs. The fact that Sinoma and Sinosteel have chosen to enter into long term off takes with MNS indicates that these companies are not interested in the smaller flake graphite that might be purchased from a company such as SYR, whether it be for current or future applications. Moreover, as a shareholder of MNS, I would have been concerned if the purchase price had not been linked to the "market price," as the price of jumbo flake graphite is expected to rise in the future (this has been the trend in the last 7 years or so).
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