You asked;
- You need to read the details, nowhere does it say RAP is finalised, just the government valuation;
- Do you actually think moving ~400 families, farmers, etc will only cost you ~$4.3m? This is the government’s valuation, not settlement terms. Or are you proposing to forcibly remove those who dispute the government valuation? Do you think every family will agree with the valuation? There’s over 400 affected families with different motives and desires we know little about. To be clear, you do not know what the final cost will be.
- MNS is burning through cash, and this will only hasten in the coming months. While I’m happy to confirm this is only my opinion, my opinion is you’ll have a CR (or two) before you have an off-take worth boasting about.
You have also overlooked the metrics of the mine in favour of hype. Global battery grade graphite demand wont hit 240,000tpa until ~2020, but you want to produce it in 2017, without a customer to be seen? And expect to out-compete every other graphite mine currently in operation to solely supply that market in 2020 and beyond?
You’ve also overlooked the water issue. A drought in Tanzania will pit the local mine against farmers, this will shut down the mine until it breaks because the government will back the people over the mine, every day of the week. It has happened in Graphite before.
Finally I have no doubt you believe the cutely worded “no harsh chemicals” flotation/purification process that only MNS seems to know about. Because MNS is better equipped than an actual producer, say Graphit Kropfmühl, who actually invented the process? (I’m not even going to mention the fact MNS management gave away ~23% of a $300m MC company for ~$9.8m!)
Much of the above doesn’t apply to KNL, it’s why I invested here.
- RAP (not just the valuation) will be finalised soon;
- KNL only has 4 families to move and has set aside ~$2m (I think?);
- Not an issue with our healthy bank balance.
As for customers, KNL has secured 7% of global demand (30% of European demand).
Drought, the semi-arid area of Epanko is sparsely populated and there’s no irrigated farms to compete with our bores.
Christoph Frey (heard of him?), worked for Graphit KropfmĂĽhl who invented the flotation process. If water purification can be done, I have faith he can do it.
A response is not required. Just remember you demanded this response.
