By flash in the pan i'm referring to a few different factors. 1)...

By flash in the pan i'm referring to a few different factors.

1) It's a bit of a flavour of the month commodity. Typically I like to have/own commodity before they become 'hot' otherwise there's the potential plummet if if comes off the boil. Happen with REO's a decade ago and lithium in 2017, cobalt even had a quick spurt. So depending on when you invested in those sectors you can do your dough for a long times.

2) To add to the point above the supply and demand equations are implicitly hard to derive in expanding markets. Typically (as i've seen in the commodities above) there's quite a few nice charts and table showing this un-waivered demand which supply can't meet. But there's 2 things that remain at the forefront of my mind. 1) Higher prices mean cut-off grades for other mines/deposits decrease and supply can fill the gap (to some extent). 2) from a manufacturing perspective, almost any material can be supplemented at the right price. So sometimes it's worth considering when pricing goes asymptotic what are some of the supplementary scenarios and considering those before one assumes that pricing can be asymptotic. I know to a great degree of certainly that there was even concern with Nickel for use in battery at tesla and the long term supply risk/cost of that as a material. But for the most part, higher prices mean more project become economic. In new markets even in lithium we're seeing a fairly inelastic markets because it's not well established - but in 5-10 years times there will be a bunch of lithium suppliers and the low cost ones will always remain in production. The marginal ones will flick in and out of production and be mothballed when pricing drops. In a more mature market the pricing swings and often not as volatile as there's much more turn-key production.

Back to graphite - whilst there remains fairly low amount of projects in production and not many projects production ready the first movers will likely have a good drivers seat. So those genuinely wishing to be part of the fold need to strike whilst the iron is hot. Otherwise they will face the wrath of decrease pricing mechanism's when everyone tries to fall across the finish line. Lithium was a good example of supposedly unwaivered demand that supply would never fill... until it did and several projects went to the wall or got mothballed. First movers, and lowest cost producers reign supreme.

Anyways, i'm just being mindful that the graphite is hot at the moment. The market can quickly change it's tune. Hot money in - hot money out. I should note that i'm actually fairly bullish on graphite as a whole I like the sector long term - but remaining grounded about just how many will take feasible part in the supply chain. Having tenements and projects in the hot sectors isn't a bad thing it attracts the money flow and the market - it's just important to take profits early in those sectors and so free-carry strategies can be viable options. I'm interested here for the REO but the graphite project is potentially a worth a few mill on the MC for sure. Proven resource, spherical graphite met work confirmed. They need to do a fair bit more in the space and probably prove up a much larger resource but speaking with Mike they're fairly confident there's more graphite in the area. Some historical results i recall on tenements outside the current resource.

SF2TH