I also have invested in BKT, WKT & SYR for different reasons.
RNU & SYR will make great money at the top 2/3 of the price cycle whereas BKT & WKT will make money at all points of the price cycle while arguably not as much as the other 2. This is because of scale & cost but also inportantly the extent of large flake.
WKT is already producing close to its planned production levels & is probably above its break even.That is helped by the proportion of larger flake that has a price/tonne double that of fines or better. This benefits both BKT & WKT. Each tonne cost the same to produce but has a much greater margin. This means they can sell their fines at close to break even & make their money on larger flake.
I am sure thats why Posco will favour a BKT over RNU at this point of the price cycle. When graphite price recovery comes, already built SYR & WKT will benefit as will BKT being closer to production. Unfortunately, its at that time that RNU will be under construction.
RNU Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
