A couple of graphite related comments by Warwick Grigor. If memory serves me, Grigor is a director of FGR (the subject of the positive comments) and from previous articles Grigor has never thought the SYR sp/mc was justified....... A bull market is declared as uranium stocks go ballistic
By Warwick Grigor, Far East Capital FGR strengthening its hand with vein graphite offtake agreement
Some investors have been missing the point with FGR’s activities in the vein graphite business, failing to appreciate that it is the control of the vein graphite supply that is critical. The Graphene Cell, which produced the best quality lowest cost graphene in bulk, works best with vein graphite that is found only in Sri Lanka. While the graphite can be sold at US$2,000, its conversion to graphene can lift the selling price by 10-20x. The key is the feedstock, and FGR can best suppress completion by getting as strong a grip on Sri Lankan material as possible. Hence the two year sales agreement announced yesterday, securing 100% of the premium grade graphite production from the government mine. It places FGR streets ahead of the competition.
Over the last 18 months there have been a number of junior companies saying that they have options or off take agreements over supplies from the government mine. Maybe they did, at some point, but none of them acted on these purported agreements so the government decided to cancel these and deal with a company that was serious about operations, not promotion. In steps FGR.
Damaging article on Syrah
During the week I received an email that went into some detail on the merits, or lack thereof, of Syrah Resources. Any SYR shareholder that read it would have broken into a cold sweat. It has been a long held view of mine that the SYR story doesn’t stack up, but once a stock gets some momentum behind it and buyers are being whipped into a frenzy by brokers and promoters, any analyst foolish enough to stand in the path of the running bulls will usually get trampled. Eventually the reality catches up and the share price turns down, but that can take years to happen. When it does it can turn very ugly. That is when the knives come out. Having said that, the shares have recently broken the downtrend in a rearguard action.
