But the fact that the two biggest Graphite (and poss vanadium) resources are a few kms apart screams to me of the Synergy/efficiency that can be gained by joining the two under the single umbrella of a one company ... The MCap of TON may have moved out of the reach of SYR in the Short term and I think you right SYR will go to production 1st and generate some cash and think about TON later.... if Still available...
But by far the most logical would be for a major to take out both deposits ... Including the advantages mentioned above they would control a monopoly on graphite and cheap vanadium... Remember that majors have an investment time horizon of 20 odd years or more not just an offtake for a few years... So the option is there to "dominate/control" the Long term graphite market ...
It is no coincidence in the timing of SYR streamlining (spinoff Tanzanian Assets) has been announced recently and the rumored Glencore hovering IMHO... WHY ... Well up and to about 6 weeks ago SYR had a monopoly on monster graphite... however they are now seeing the writing on the wall, now another behemoth resource is being spec'ed up next door and they must see the value of their monopoly resource position being diminished and devalued ultimately ... So what are they to do to maximise shareholder value ... Well one option is to sell out before the monster Indicated Jorc gets announced at TON ... This I what I believe they will do...
All is IMHO DYOR to Confirm
TON Price at posting:
65.0¢ Sentiment: Buy Disclosure: Held
