Is this a con job, page-88

Hi TJ

That model is some nice work for doing hypotheticals. However, there are assumptions and then there are facts.

The facts with the Chalco deal indicate that SYR will be supplying graphite for 3 reasons. One being for possible use as anode material in the aluminium smelter. That seems to be the focus of Cdchi's nice little model.

The other two being:

For distribution to other users.
For use as cathode material in the aluminium smelter.

The assumption used by Cdchi is based on the cost of petcoke raw material being $550. The assumption missing is the additional overhead cost of graphitizing this petcoke using a lot of energy at high temperatures for about 4 days. Therefore, the costs being targeted for substitution by natural graphite from Balama are higher than just $550.

Anyway, nobody on HC will know the sale price to Chalco until it is announced to the market. Then it will be reviewed every 3 months from then on. Until then we can continue playing the guessing game.

Cheers