Potential Upside of WKT - Expandable Graphite, page-1310

HI @Riskon22

A very important FACT that needs to be kept in mind with WKT.

The current size of the Expandable Graphite market is only going to get much larger year after year after year and the current size is not the key point simply due to the supply demand imbalance occurring.

WKT master plan is to GROW WITH the Expandable Market - NOT INTO IT and certainly NOT intending to disrupt the Expandable Graphite Market.

Of importance is WKT has its first 2 Binding Offtake Agreements with 2 Expandable Graphite processing businesses that are existing expandable businesses where one in expanding their existing plant and the other party is actually building a 2nd expandable processing plant.

Growing WITH the Market and NOT disrupting the market is the KEY.

The Expandable Graphite Market is growing and will continue to EXPAND in such a way over the next 10 years that there has to be more Expandable Graphite Mines become operational to cater for Fire Retardant Building Materials alone.  

China National Building Materials CNBM have stated they would need approx. 2 Mill Tonnes per year of Expandable Graphite and this figure is likely to double as legislation changes around the world change.

Those fire retardant building material legislation changes are occurring now since the Grenfell Towers, along with other high rise fires around the world and only recently earlier this year, Australia dodged a major catastrophe that has seen almost instant changes to legislation for Fire Retardant Cladding on high rise buildings and high density living.

Ultimately WKT will not be able to service this industry single handed and it will require a lot more Graphite Mines with greater flake size distribution leaning more towards Expandable Graphite and NOT the Battery Graphite Market to come online.

In due course WKT is likely to be producing 200K TPA of Expandable Graphite in future IMO.  If the demand is 10x-20x that in 5-10 years, it leaves a major supply and demand imbalance that we as EXPANDABLE Graphite Investors want to be on the early side of and we will reap some very serious upside benefits.

Everyone else will be playing catch up as the world is largely ignorant of the Premium Priced Expandable Graphite Market and more fixated on the Lowest Priced Battery Graphite Market for the EV revolution that has the lowest Free Cash Margins.

A real shame that industry participants are not highlighting the Expandable Market when they talk about Graphite as if the Battery Grade market was the only market.

I see time and time again, journos, researchers, analysts, media, brokers, financiers etc not yet truly understanding the differences in the Graphite Markets and why its so important to know your Graphite.

Now with SYR who has gone for more is better, have actually harmed their battery market by saturating supply and affecting the battery market with lower prices again and have been burning cash due to having the lowest free cash margins.

SYR who by the way have only just realised that supplying more is not better in recent announcements.​