The simplest way I can distinguish Triton Minerals from Syrah Resources for you is the product..Completely different products with completely different markets and application.
With the exception of sharing the word graphite the companies products are nothing a like.
Triton is looking likely to secure financing for it's Ancuabe mine in the very near term which is rich in large flake graphite.
Large and jumbo flake deposits of graphite are rare around the globe and is currently not mined anywhere on scale, large flake importation into China is fractured and sourced from multiple suppliers. The fact that the majority of China's large flake is currently imported lends to the businesses case and analyst reports that there is a large flake deficit in China and it is likely to grow according to modeling.
The recent legislation in China to ban bromine in building material as a flame retardant property has caused the building industry to look to expandable large flake graphite as it's replacement to bromine.
Fine flake graphite which is what Syrah predominantly mine does not lend to the building industry, it's growth potential is rooted in the EV market and until that industry reaches it's in-flexion point it will continue to be an investment risk. The longer term modeling on fine flake demand too suggests it will be a lucrative product with potential supply shortfalls but in the near term there is sufficient internal production inside China to meet the battery market demand, this lack of international fine flake demand is currently choking Syrah.
Triton Minerals large flake will command premium prices, about 3x the price of fine flake which is great but yes, demand will still be of critical importance because if you can't sell it than 3x the premium is redundant.
Thankfully most of the information available to potential Triton investors is lending to a strong business case for the demand of our product now, not in 5-10 years.
I know many shareholders would have been pleased to see financing a year ago, however unlike Syrah who were able to raise a huge amount of capital for the financing of their mine on the back of a high sp and strong market sentiment at that time Triton have needed to take a different path to financing and one I feel is actually been to our benefit.
Triton are looking at financing via a split debt packaging, about 60% of capex through 'China Merchant Bank' and 40% via our majot key shareholder 'Jinan Hi-Tech' as I understand it from of managing director Peters interviews.
The level of scrutiny to the viability of Tritons Ancuabe mine and DFS has been extremely high. Both 'China Merchant Bank' and 'Jinan Hi-Tech' have gone over and over and over Triton's business plan and viability, they have absolutely made sure to every possible measure that this mine will be profitable in the near term. We wanted financing yesterday but Jinan and Triton management have really gone over everything with a fine tooth comb and I'm of the opinion the extremely low cost per tonne of production and the reduced risk of execution will be telling and well worth the wait.
You can rest assured after Syrah global financiers like 'China Merchant Bank' will have had the highest of due diligence before considering the lending of financing to Triton.
You can also rest assured that 'Jinan Hi-Tech' who as an SOE are extremely accountable will have categorically made sure the project economics and viability added up before investing an initial $20m and now potentially another $40m US. Our major shareholder 'Jinan Hi-Tech' manage multi-billion dollar infrastructure projects for the state of Shangdon and are undoubtedly very in touch with the dmeand for expandable graphite.
A further vote of confidence to the viability of Triton's Ancuabe mine potentially is the current collaboration between Triton, Jinan Hi-Tech and 'Xingchen Graphite' who are currently China's largest graphite processor and finished product manufacturer across both fine and large flake graphite. Xingchen Graphite have conducted multiple rounds of testing on Ancuabes large flake, not because they currently have too much but because they are aware of the current and growing shortfall. Xingchen Graphite have reported they are very pleased with Triton's large flake graphite test results and an off-take in the near term seems highly probable. In addition to a possible off-take Triton, Jinan Hi-Tech and Xingchen Graphite are in negotiations for a down stream revenue adding opportunity which again lends to the viability of Triton.
Jinan Hi-Tech last week released resolutions to its stakeholders that were approved all but guaranteeing financing for Triton, they even set KPI's with cash bonuses including one for the profitability of Triton of $50m in a single financial year in the near term. That KPI is another indicator that the profitability of Triton is an expectation in the near term for out major shareholder and financier.
I'm personally extremely confident of Triton's short term success and viability. I believe our management are extremely diligent, calculated and capable of executing our objectives.
Good luck Buddy with your investment and I hope you see many returns on it as I believe you soon will. This will not just be a flash in the pan burst of fire like Syrah only to fade out on the back of a poor market awareness and business model. Triton will actually deliver strong returns on commission and into the next 50 years, a sustainable and sound model investors can invest in, not just trade.
(20min delay)