Back in July, I was approached by a company interested in...

Back in July, I was approached by a company interested in selling Walkabout products and becoming their distributor for a specific country. They contacted me to discuss the graphite market and explore how they could penetrate that market. While the discussions did not progress further, I had the opportunity six months ago to thoroughly analyze the project and the company's details.

My initial reaction was that acquiring this company could be a strategic move for anyone seriously considering entering the graphite market. The project itself is one of the best in the world, but their strategy is the worst one I have ever seen, to the extent that it could potentially lead the company to bankruptcy.

I still firmly believe that the project has world-class potential. With a few strategic adjustments and careful management, this project could become a significant cash-generating asset for any company aiming to succeed in the graphite industry.

The first thing they need is a firm strategy for small flakes and fines, which I assumed is around 70% of current production against 25% as it was planned in feasibility, they have no plan at all for this. They may have a couple of thousand tons of concentrate sitting on the mine labeled as "Off Grade" because of flake size and a grade lower than 95% C.

Below are two slides I prepared back in July, which may provide some insight into what might have occurred and how this opportunity could be leveraged.