Point Number 5

Hi All, with all the confusion caused by point number 6  of the announcement I sort of feel the importance of point number 5 has been overlooked.

https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvSDYL4wm7yBDxv/p37LFiGug=


In particular this bit

"During the various phases of development of Nachu, the Company management conducted several studies looking at the viability of the export of graphite concentrate. Particular attention was focused on what impact would be on the flake graphite market if several other large scale graphite projects commenced operation. Magnis’ view was that the potential lower revenue pricing in the market would make any strategy or operation reliant on solely producing graphite concentrate would not be a financially sensible option. "

And then focussing on this bit

"’ Magnis' view was that the potential lower revenue pricing in the market would make any strategy or operation reliant on solely producing graphite concentrate would not be a financially sensible option. "

I am sort of wondering if this could explain the difficulties in getting project finance over the last few years, as if this was Magnis view then it was unlikely anyone else would likely fund it in my opinion, given this risk factor of "lower revenue pricing" making project not "a financially sensible option"

Though it does seem to contradict the positive economics presented in the BFS, so I am a bit confused with this apparent sudden turn around from the robust DFS economics as presented.

So having done "several studies" we have this concern on the project , as not being a "financially sensible option". Now my understanding is that the DFS was completed on a producing graphite concentrate model, yet all of a sudden it not a "financially sensible option"

Seems a big turn around to what was presented in the DFS and may explain the SP trend.

Was the DFS wrong or has something changed, like surely they anticipated some new large producers coming to market (eg just about everyone had heard of SYR as but one example).

Anyway, to me it helps explain why funding hasn't been forth coming to date on the old concentrate model, not a "financially sensible option" apparently.

Be curious when these "several studies" were done that indicated that it wasn't a "financially sensible option", must admit I can't remember any ASX announcements indicating anything about these studies, would have been nice to know about them and potential impact on project viability that they seemed to raise. Has anyone got details on any release to market of this info as would be curious to read through it?

All just in my very humble opinion though