MNS (ASX) MNS-Understanding the graphite industry

Originally posted by MrSpecter ↑

Havent posted my thoughts in a while,

IMO

All companies are looking to achieve the highest margins, profitability and viability of their project and this should be the number one criteria when signing offtake agreements. Also we should remove the fallacy of supplying 'Tesla" or whoever and look at it from another perspective...

Syrah planned to build a Spherical plant to increase it's margins and KNL, despite signing offtakes for 40kpa* or so of it's graphite concentrate, is now also looking to increase it's margins with a spherical plant, because the current offtake agreements do not make the project viable, hence the share price never went up after signing offtakes for the capacity of their output.

The recent MNS MOU with Rosotam is actually a fantastic opportunity for Magnis to secure offtakes for it's Super Jumbo and Jumbo graphite. I think that in addition to offtakes for battery-grade graphite with end users, securing offtakes for the Super Jumbo will be hugely beneficial and profitable for our project.

MNS management are focusing on a long-term strategy and are perhaps reluctant when it comes to giving away profit margins, which is a good thing. MNS are probably avoiding deals with traders and perhaps very reluctant on those $800-$1200 p/t offers for graphite concentrate as we've seen others jump towards in the industry. Another very real financial risk , is that if you sign offtakes with a third-party trader, the capacity of your sales are based on their ability to achieve their sales in the lithium battery industry themselves, so they cant really commit purchasing a certain minimum quantity, especially if they themselves have no history of sales in the lithium battery industry. This again is a glaring financial risk for the project viability when dealing with third-parties and traders like Sojitz, Marubeni and perhaps also comapanies like Posco and Hitachi (to some degree) who also buy graphite concentrate...

IMO Magnis is strongly focusing on capturing the highest margins and profitability for its product. Offtakes may take longer because we are specifically targeting end-users and avoiding the third parties who are going to squeeze margins out of the company. While it may take longer, it's actually a very smart move and the most beneficial for shareholders in the long term. This has always been the company's strategy hence our ongoing focus and excellent results achieved with our graphite processing and high purity, which is far superior to any other company globally, not to mention our R&D team with Stanley Whittingam and Shailesh Upreti...

Management are looking out for shareholders interests here and the long term financial viability of the company. The company is in a strong position however are no short-cuts to success. You just need to have the perspective and the vision to see the difference between Magnis and the rest of the sector.

forgive any spelling or punctuation errors..it's late and really cbf editing.

Cheers...GLTA!

MNS!!

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Wasn't it not so long ago that people were telling us we would never sell our jumbo and super jumbo as battery feed stock needed to be smaller as less milling reduced costs??

Well here we are signing MOU's for offtakes for the very stuff the EX-spurts were telling us we would never sell and thus made our project unviable... strange they dont bring that up now??