KfW IPEX-Bank UFK Financing Example, page-4

Great post summarising why Kibaran is such a compelling investment case - as always crazy to think you can buy in at these levels still.

In relation to the possible timeline you have illustrated regarding obtaining that final finance tick below is a list of reasons why I think it is very unlikely to drag out much longer:

Firstly, management are aiming to get the project into production in late 2016 if possible, but more realistically early 2017. Ever since the one month delay on the BFS announcement Andrew has said they are no longer going to be providing timeframes on completing milestones - however they have continued to emphasise when they will be in production. Not only this but in the TK off-take agreement announcement TK themselves are quoted as saying that the project is expected to be in production during early 2017. As we know it's estimated to take 17 months from obtaining to finance to first production so even a couple more months delay would inhibit the company's ability to commence production as advised.

Next, I posted maybe a month ago about a US company called NioCorp Developments also receiving an in-principle eligibility for the UFK cover. If we take a look at the timeline for this company - they announced their off-take agreement with TK 15 December 2014 then the UFK cover three months later on 3 March 2015. In contrast KNL signed the off-take 25 August then only a week to the day later the UFK cover on 1 September.

Finally, while it is true that the loan amount received from KfW was USD 194M the actual capital expenditure required for the project is USD 300M - refer to the attached link:

https://www.pcc.eu/ttw/pcc.nsf/id/EN_Silicon-metal-project-in-Iceland.

In relation to these other companies what I gather is that these are projects on a much larger scale that require a much heavier upfront capital expenditure outlay with a lower IRR as compared to the Epanko project which undoubtedly reduces the time required for finalisation.

Also I can't comment on the other companies but as noted Kibaran received an expression of interest from KfW during March 2015 and have therefore been quietly been chipping away at the requirements during the months that have elapsed.

To summarise, given the critical nature of being one of the first graphite company's into production & the smaller scale project the company are going with compels me to think that things will get sorted sooner rather than later.