Key to the SP rising?, page-40

Hi Pauldola

I am just following certain people now on the TON forum and will read their messages. There is that much ill-informed 'noise' on the TON thread at the moment I admit it annoys me so I am better switching off for a while.

As for Brad's trip to China again, I guess one can only speculate. If you listed to his media talk of yesterday he made it very clear that there is significant customer interest in a variety of grades, so I am assuming his trip back to China relates to his media comments. I would not be surprised if our whole suite across grades is signed up in the not too distant future. Brad rang me on Thurs afternoon - he only reaffirmed what was said in the media session and sounded positive, looking forward to spending some time with his family.

I have formed a view that BB is an intelligent guy, extremely hard working to the max., is heavily concerned about the interests of all shareholders, BUT best of all, is smart enough to know when to get the required skill around him. This is a rare commodity.... There was a great post by Don a month on this point.

You posted a message a month or so that rings in my ear a bell of confidence....it was along the lines that TON is investing a significant amount of time in understanding the real graphite market in China. People at the time just had a dig at BB for clocking up frequent flyer points. Well, I think BB may have the last laugh.... TON isn't in the market of slinging mud on their competitors, it is in the business of developing core relationships with value add partners.

I am extremely confident PD that BB will get sufficient offtake demand to support the DFS specs. Ancuabe is a positive......and we haven't even touched on Vanadium. Haven't AMG got a proven track record in the processing and distribution of Vanadium?

Just need to tighten up the register. This will no doubt come.......the financiers have a set of rules that determine where they can invest. TON is ticking all the right boxes so I expect quantum changes when they take a real position in TON.

There is that much cheap money floating around at the moment looking for a home, so long as TON continue down the de-risking curve I really cannot see that funding will be a huge issue. My understanding is that TON's finance requirements would be 'loose change' for our Chinese partner. And we also have Alterna (as part of the AMG alliance)....these are big boys and I would not under-estimate what could happen in this space.

As TON continues down the de-risk curve, the funds will start bringing in their discount rate. This means big $$$$ valuation in your terminal value (normally at year 10 in a modelling exercise). Having a binding offtake for 20 years is a big plus in this space, as terminal value in this space is a material part of the valuation. Seeing this as a long term commercial operation, with customers to support this assumption, is a key driver of value in the 10+ year valuation exercise.

I am hoping that the SYR DFS comes out soon and is positive. This could be a huge momentum builder for the graphite space.