How much MNS worth without Tesla deal, page-30

@ Evergrayeful.

It is probably worth adding to this post. In graphite (as with all mineral deposits) it is not just about size of deposit - you can have the largest deposit of something in the world, but if it is the wrong grade, high impurities, etc, it's economics can be challenged.

In this instance (and I am sourcing this data from a variety of sources):

• Magnis Nachu total resource is 174Mt @ 5.4% grade (3% grade cut-off) for 3.6Mt contained graphite so far. They have not drilled out the total resource area.
• It is a premium product resource - unique crystalline structure with low impurities that allow for product concentrate purity levels up to 99.6%.
• An interesting feature is the product mix potential. We are all focused on the battery side of things - in fact only about 55% of the Nachu graphite (Large Flake = <300 microns, -50 mesh) would go into Li-ion batteries (ie to the AAM). 10% goes into ultra high-end uses such as Aerospace and composites (Super Jumbo Flake = 500+ microns / +35 mesh) and a further 35% goes into electronics (Jumbo Flake = 300-500 microns / +50 to -35 mesh). I suspect that the Traxis offtake will be focused on those high-end markets and the balance into the AAM.
• This little table is from a now very dated Paydirt report (published in 2015 - so ignore the very dated Price per tonne figures), but it succinctly defines different product types and the relativities in pricing:
• 
• If I can use Syrah as a comparison, their Balma resource is very large (107Mt @ 16% = 16.9Mt contained graphite). Their product is refined to a 94% to 98% concentrate with 80% as Fine Flakes (-100 mesh). So, they have a very large deposit producing mostly the lowest grade (Fine Flakes) product.
• Not sure of current pricing relativities, but from the dated price information in the above table, every tonne of Nachu product is worth more than 3X a tonne of Syrah Balma product!!
• The Syrah AAM is to produce 18-micron and 12-micron coated purified spherical graphite.
• The Magnis AAM is to produce an average product size of 22-micron coated purified spherical graphite.
• On my read, Syrah really needed their AAM deal to make their Balma operation financially sustainable over a cycle. The AAM deal for Magnis is quite different - it is more about maximising the value capture for the approx 55% of their Nachu production that will go into the Li-ion battery market.