Anyone who bothers to take a glance at the map can see at once that the statements on transport costs are nonsense. The Sovereign leases are in Malawi, a land-locked country, and are more than 800 km from the coast. The claim that they can be sent by truck 60 km to a port could conceivably be true - but only if they plan to put the graphite on a boat in Lake Nyasa, which does not have access to the ocean!
The Stormcrow report shows that Sovereign has two deposits, one in hard rock, with high mining and processing costs, rather like most of the Canadian prospectors, and the other in saprolite, a heavily weathered clay. Similar Chinese deposits attract low prices, due to the difficulty of removing the clay impurities, which limit the applications for which the product is suitable.
Stormcrow have a well-deserved reputation for pushing their own particular barrow, and pumping their preferred stock. This report appears to be no exception.
Cheers, Prime1
SYR Price at posting:
$5.47 Sentiment: Buy Disclosure: Held
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