Quote: a causal glance at the graphite e landscape of wannabe African graphite producers shows a clear relationship between share price run ups for anticipated funding and then a correction.
This graphite space is littered with the bodies of over hyped projects
Hard to disagree as all projects mentioned were hyped into the vanilla markets and low priced refractory markets while there was enough information going around at the time to foresee the market had it wrong....@Tobyjack was years ahead of posters and unfortunately stopped posting after a barrage of criticism...Over hype were common place backed by the theory that all they had to do was emulate SYR...
How wrong they were developing huge projects designed for impressive NPV while clearly market size was not achievable let alone start up capex...Not surprised that these other projects have not been funded after all the hype
Imery's concerns and closure due to small margins and competitive pricing while SYR expected to take up new supply and sell to the prevailing markets for vanilla markets...Whats important is to differentiate from the over supply of vanilla markets to the new more exciting Expandable markets offering huge margin. SYR or other hopefuls will not be in any position to apply pressure to these expandable market as we all know you can grind down but not up...
WKT project underpinned by premium expandable markets with product limited in nature differentiates to vanilla markets in over supply...Have added the directional arrow so please observe while Tanzania projects have lacked funding news to date two entirely different markets are at play with WKT providing lowest capital intensity per ton mine with highest margin curve per ton mined quoted within spec and modeling conservative numbers for DFS...
Expandable markets pay premium while differentiating to Tanzanian peerswhom now need to adjust project scale to market size NPV will not be able to compete with WKT whom can operate at lowest cost and still produce higher revenue stream to peers...Expansion potential undeniable as demand ramps up from fire retardant markets,Tyre manufacture,heat shields and much much more...The most advanced project with huge upside...
What do you want to be invested in...Premium Expandable markets or low priced vanilla...
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