The Due Diligence is not conducted by the company or the...

The Due Diligence is not conducted by the company or the Investment Bank direct, they engage very specialised independent consultants with the appropriate professional indemnity insurance to review the project and its identifiable risks and write up reports with costings and associated risk mitigation strategies to de risk the project.

Complete garbage - the Investment partner will do massive DD, it's usually a combination investment partner and their own consultants. Infact, they will likely seconder an employee into the WKT for a few months.


They will be covering everything and anything to do with the project. Construction Processes, Site Works, Training, Technical, Logistics, Offtake Pricing Mechanisms, Shipping and Handling, Legal aspects that cover Tanzania, China and Australia, Legislation changes and the free carry royalty framework, political stability, etc, etc.

No shit sherlock.


The DFS will be fully reviewed by everyone and that is what has to be done as we do not have a BFS, so essentially we are undergoing a major health check and BFS process simultaneously.

Or they could request you undertake a BFS - See Graphex

IMO the Investment Bank having got this far into the Due Diligence phase is unlikely to be walking away as they would have done so already.

Who said it will be an Investment bank? It will almost certainly not be an investment bank, likely an investment fund, asset manager or P/E vehicle. Deutsche Bank and Credit Suisse made fee money on Syrah, but given their performance, its probably more unlikely that a big Investment bank will underwrite another graphite play. The potential investment partner my also be looking at more than one graphite play and could walk away at any time. Not to mention they might have already walked away and the Company has just chosen not to fill the market in. They could be on more than one DD journey.

Not to mention, at some stage, there were term sheets which obviously got laughed out of the room and now they are on a more traditional journey. There were actually posters here who thought the company would be dictating terms. Hilarious.

Highly unlikely they are going to open a door in the DD process and be freaked out.

On the project perhaps, but they might look at the Board and management and go nah.