My guess is that they will not pull the FID trigger until graphite prices show some life.
I just listened to a preso from David Christensen of Renascor and he was quite explicit that Renascor is all dressed up and ready to move into development of their South Australian graphite quarry and mid-stream operations but are holding back waiting on prices to turn. He said at one point that if they could sign up an offtake agreement with one of the big ex-China downstream operators then that would allow to move into arranging finances and FIDing. What he didn't say explicitly was that the prices the downstream guys are currently offering would make Renascor's operations unviable but I am quite sure that was his message. I suspect it is the same for International Graphite: even if they did do what they say they are about to do it would be an unviable proposition. The difference between Renascor and International Graphite is that the latter is pretending that their project is not stuck.
Originally I was impressed by Andrew Worland's presentations but over time I've come to think that he is unusually careful in what he says and how he conveys information. In light of this, my view is that it is best not to anticipate progress with this company. I intend to ignore all the huffing and puffing about what they are about to do and only when they have they delivered something tangible will I reassess IG6 as an investment opportunity.
Add to My Watchlist
What is My Watchlist?
