General Discussion, page-1905

I believe i addressed the issue regarding the holdup with what's happening in Tanz for EGR. The fact that the scope of the project to include not only Merelani (expanded output) but a micronising/spheronising facility onsite, means EGR's German financiers need to bed down stuff with both EGR and the Tanz Govt.

Regarding your earlier comment that suggests that Kwinana is now an abandoned story, that is not how I see it. LTH certainly wouldn't see EGR's attention on the US and back in Europe again as being an about-turn. Think about it.... there's SYR building a BAM facility in the US - micronising, spheronising and purification processes requiring the shipping of graphite concentrate from Mozambique. Here's EGR giving consideration (based on much number crunching no doubt) to separating the processes to effectively more than halving shipping costs. Despite what all the naysayers think of EGR management, at least they are not rushing into things like SYR has done in the past and perhaps is doing now or how another company has rushed into construction without financing properly bedded down. Fact is that EGR has $40m in the bank, low SOI and very well-planned business model. The latest "pivot" has been forced upon us by virtue of ESG supply chain governance (perhaps even fortuitously if one is to think positively about it). Micronisation and spheronisation carried out at the site of the mine with purification facilities in Europe, the US and Kwinana... now that makes absolute sense. The CAPEX for purification-only facilities (potentially govt-subsidised in the countries of location) would surely make the business model even more efficient, economical and attractive.

What I think you are pointing out is that there is a greater need to get mining underway than it is to construct BAM facilities due to the looming deficit in natural graphite... and that is what EGR seem to be focusing on now and for that reason. As pointed out by the company, the significance of supply chain reliability, the ESG-compliance factor is making vertical intergration a vital criteria for OEM offtakes. EGR is simply adapting to the reality that is unfolding in the global scene. They haven't "walked away" from Kwinana. The revised proposal is for a 25ktpa purification-only facility in Kwinana alongside a products-testing facility. Sure, that needs to be spelt out a little more clearly with the definitive plans moving forward without all the noise. What seems to be clear is that a number of contingencies and cost-savings have been elevated, resulting in the perception that the company is no longer on track. IMO, they are still on track, and that perhaps it was with Dale Harris's appointment that these matters were brought to the fore and more attention is being placed on the upstream part of the busienss.