Now you understand kl. Your right in pointing out that ton is...

Now you understand kl. Your right in pointing out that ton is going to be a low cost producer and that should help them get to production and hopefully survive the fall in graphite prices. What does it mean for ton, is if people are doing eps calculations, they need to lower the average price received from $1,000 like people are quoting to the long term average selling price of graphite at 500 to 600 per tonne. With this explosion of supply coming on stream, expectation may need to be lowered again to 450 to 500 a tonne. Tons cost are likely to be 350 per tonne, so there's money to be made by ton. It's also likely at those price levels, ton will be a dominant player and could possibly supply more than the 200,000 tonnes, to say 300,000 to 400,000 tonnes. So the drop in profit margin could mean it's made up in selling more product, hence keeping steady the company profit. Selling product for less doesn't necessary mean less profit if you are a low cost producer. One just needs to look at the iron ore market. High cost producers leave the market and the low cost producers dominate