Ton has the largest high quality most diverse graphite deposit in the world but IMO the standout difference is the TMG advantage with its expandable graphite and the deals TON management have done with YXGC. Congrats to BB and also to Alan Jenks whose hand I can see in the formulation of the 2 joint ventures. He is a already a successful business man with lots of experience in Africa and running a platinum group metals recycling company. The JV'S are in good hands and the deals made were very strong for Triton largely because of very fortuitous timing!.........................
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YXJC are China's largest producer of expanded enhanced graphite products.
YXJC are expecting the Chinese Govt. to shortly mandate the use of one of its products. viz- all new buildings must contain 10-15%of expanded graphite for insulation!
YXJC therefore needed to find in a hurry an enormous supply of suitable graphite. Could not approach SYR direct because of Chalieco's exclusive
deal there; which left Triton, and "the TMG material performed well beyond our highest expectations". Note:- not all graphite is expandable however the TMG expanded up to 1000 times in the YXJC lab.
This off-take agreement was further strengthened by YXGC giving Triton exclusive rights to supply from Mozambique, Madagascar, Malawi and Tanzania which of course takes in SYR and MNS . Expanded graphite sells for up to $3500/tonne now and if this Chinese mandate does come in then it is reasonable to expect the price to rise in response to the demand. If down the track SYR and MNS want to access this lucrative market with YHJC they will have to do so via TON. IMO a very strong deal has been negotiated for TON which will get stronger in time.
TON Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
