EGR vs Similar Companies, page-423

Agree, Miller, that its positive news that both companies have received support from the Aust govt. Afterall, the two companies are unlikely to be in direct competition particularly if BOA are going to be in place.

For the mining and processing side of the graphite business to be profitable, though, economy of scale must dictate that RNU produce a hell of a lot of graphite to be profitable. They would have to produce way beyond what is needed for its PSG plant, and, if its FSD consists of very little coarse flake graphite, then surely margins will be tight?

The other point that seems to keep getting brought up is the shipping aspect of getting graphite from Tanzania (if Epanko gets up). Surely, the savings in labour costs (Tanz vs Aust wages) would offset shipping costs.

Anway, fingers crossed that RNU investors aren't having the wool pulled over their eyes with unrealistic price assumptions and will be undertaking bulk sample pilot plant testing. I have to admit that I'm not conversant on their DFS parameters but SYR sure illustrates the pitfalls of going into production behind the 8-ball.