FDR and VXL

Flinders is following the same path as Valence in changing its production but offers a very different explanation for doing that. Flinders says present production is unprofitable so much execute Stage 2. Valence says it has sales at prices that suggest profitability and is executing the next production stage as planned. Flinders has a lower cost of production and the product is similar.

Despite the Woxna project producing graphite to grade and recovery specifications at competitive cash costs, declining global flake graphite demand during 2015 has pushed prices to a four year low of less than US$700/tonne. Given these weakening conditions, the Board has chosen to reduce production and only supply larger volumes when improved graphite prices return. The plant shall be maintained on a production-ready basis and working capital conserved.
With a business model based on production, not just promise, we are now able to execute Stage 2 and focus on supplying ultra-high purity graphite concentrate into the plus $10B synthetic graphite market.