KNL and ThyssenKrupp, page-148

Hi @FullMoonFever,

As it stands there is a risk factor with KNL in regard to funding - notwithstanding indicative terms from two behemoth banks amounting to US$70m dependant upon due diligence and possibly subject to the German Government Guarantee scheme for important commodities to Germany. And also notwithstanding the fact that due diligence inspections by the parties' engineers are complete and that the BFS on which the finance application is based does not take into account additional output capacity of 10% (following bulk sampling they company increased its actual grades), an additional MOU with Sojitz, the battery grade production scoping study and the potential for a JV with Sojitz to make battery grade graphite.

Now that that major risk has been discussed, I guess that just leaves a short summary of the good bits... 75% of initial output covered by binding off-takes with German companies (much easier to enforce a contract in Europe than, say, China). Graphite grades include the 300-500 micron range (which people like, apparently). Conservative approach by management, steady as she goes, very little 'boat party' hype. To date they have under-promised and over-delivered. The KNL BFS is interesting reading, particularly where they note that their price assumptions are conservative compared to its peers (and why).

The best part about KNL, in my view, is that compared to its peers and its peers' progress it is grossly under-valued (there is a recent comparison table updated by @rocko floating around here somewhere, will have to find it again later). And that is probably the best part about KNL, the fact that it has enormous potential to move upwards rather than sideways or downwards.