EGR 9.09% 10.0¢ ecograf limited

EGR vs Similar Companies, page-12

  1. 1,231 Posts.
    lightbulb Created with Sketch. 2728
    'RNU production costs circa 30 percent higher per tonne for SPG - US$2,000/t (RNU) and US$1,531 (EGR) *(please fact check this).'

    Hi SugeKnight,

    As requested, I’ve done a fact check comparing EGR's and RNU's ‘PSG’ production costs. Also known as their ‘OPEX’. They are as follows:

    RNU is US$1989/t GROSS. It includes its own graphite concentrate feedstock. And doesn’t include any by-product credits. See RNU ASX Announcement 1 July, 2020.

    EGR is US$1998/t however it is MISSING the costs of graphite concentrate feedstock? See EGR ASX Announcement 17 April 2019—and figure 1 below which I have highlighted in red the issue. Also, it’s not clear if the Announcement includes by-product credits. See also that report.

    Please note: the US$1531/t figure is actually EGRs EBITDA (an estimate of profit margin). It is not its OPEX. They are two different financial measurements. Therefore, until EGR releases an update reflecting a GROSS OPEX we can’t compare, except to say that EGR is going to be about $406/t higher (US$2404/t) based on RNU’s feedstock cost advantage. See figure 2 below.

    I trust this helps.


    https://hotcopper.com.au/data/attachments/3039/3039246-b0e0ba2e2b7f4c2ff05da9d5eeac10f4.jpg

    Figure 1: Compared to RNU, EGR’s OPEX doesn’t include the costs of the graphite concentrate feedstock. See, ASX Announcement 17 April 2019, page 3.

    https://hotcopper.com.au/data/attachments/3039/3039249-489ad6357d6da828ffdf975fce9b9af5.jpg


    Figure 2: RNU’s graphite concentrate feedstock cost advantage is at least $406/t and predicted to grow as prices do.



 
watchlist Created with Sketch. Add EGR (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.