I agree that the rush to binding offtakes is not in Renascor's interest but will come as a result of the super cycle.
I’ve been trying to find a diagram that shows how far Europe is away from developing its own anode manufacturing industry so that it will be capable to compete with the
Tier1 north-east Asian anode makers, however, the attached one is as close to where we can expect to find them – out of the picture and still many years away. That's because they are yet to gain the necessary expertise, manufacturing confidence and track record in its products to be able to compete with the
Tier1 producers, ie, they have none and it will take years to gain it.
So until then, it’s all about the
Tier1 suppliers for anodes which is 100% from Japan, Republic of Korea and China. Furthermore, it’s fair to say that these established players will want to maintain their
Tier1 dominance for as long as possible.
On the Purified Spherical Graphic (PSG) supply-chain side, Renascor will be a multiple Tier1 service provider:
- Tier1 project robust economics with,
- Tier1 PSG purification process (99.99%), located in a
- Tier1 – 100% in-country jurisdiction with,
- Tier1 ESG track-record credentials.
You'll be hard-pressed to name another similar project with multiple tiering capabilities. Not that there is anything wrong with having a lessor tier project (we’re going to need many of them), it’s just that no one else in this sector has such clear and clean fundamentals than the Siviour Graphite Project. To provide the most risk-less supply of PSG material to leverage-off the looming supply crunch.
So it begs the question, with Renascor having so far 3 non-binding MOUs, why hasn’t it been completely swallowed up?I suspect that it is all about timing – but are we talking weeks, months, by Christmas?
The general consensus is that only when such time as the
Tier1 players feel the pressure from the other lower tier players gaining traction that they'll act. Until then, they can afford to bide their time in the hope that Renascor can't. Therefore, it's a game of patience but whose patience?
What we do know is that management is concurrently in direct discussions with many of the established and upcoming players. And they all know how good the project is. Renascor doesn't need to flinch because they know that the super cycle will occur no matter what. So missing the Siviour boat comes down who needs us to '
maintain their status' more than we need them.
All IMHO GLTA(patient)H.
(20min delay)