I see no obstacle to EGR obtaining the SML - just a matter of time, formal approval date at the whim of Tanz Gov. The framework agreement signed 2 years earlier has Tanz Gov as a major stakeholder in Duma TanzGraphite (16% non-dilutable free-carried interest) - in their best interest to facilitate development of Epanko.
Of course, the major hurdle is obtaining the UFK loan through KfW-IPEX. I'm not overly confident of this eventuating, despite the progress outlined in the recent quarterly report. The graphite market remains depressed, with the Chinese stranglehold tighter than ever. Are western governments willing to stump up huge money to assist in shifting the status quo? Risk that initial tidal wave of investment across graphite/REE sectors necessary to start building some momentum? All of this talk for years on development of ex-China critical mineral supply chains and still very little real action.
However, it seems to me that the Ecograf (high level of technical de-risking and offer of downstream processing) - Tanzania (superior natural flake graphite) - Germany (strong vehicle manufacturing and industrial sectors) combo proposition offers as good a chance as any at success.
EGR Price at posting:
8.0¢ Sentiment: Hold Disclosure: Held
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