tantalum - tantamount to torture, page-3

Well Bagman if something doesnt happen soon with GIP with this kind of Ta news in one of the most respected Ta passives(the highest user of Ta magaizines its hard to know WHEN it will happen!!!

Its not as if this news hasnt been known in the industry for a few months AT THE VERY LEAST now.One can only surmise that perhaps any potential offtaker is waiting to see what this renewed market weakness brings for Ta demand/prices/credit backing for long term large supply offtakes.

In terms of the last item we all know GIP can substantially undercut Talisons price required to reopen their mines.

Geeez Baman I cant see how the factors can be any more in favour of GIP.Like Ive said previosuly watch for the first signs of shortness of supply of tantalite which will be a creep up in price of tantalite powder.But we have seen such a tantalite price before havnt we.Just how much restriction there is of the cheap DRC stuff this time around will be critical to this price continuing to strengthen.

PERHAP, just PERHAPS, with the US pushing these blood commodity bills through Congress the awareness in the industry is even more heightened than it was before and there will not be a resorting to the DRC material.

Also surely tantalite stockpiles must be close to total drawdown or at least down to critical minimum required.

But the confusing thing is if this is the case then where the hell dotantalite consumers get their supply until such projects as GIP's start or Talisons reopen???

And whats even more confusing is that GIP's project is one that must be financially initiated well out from any such spike in prices/demand.

Torture in two forms eh Bagman.Frustration AND confusion for you guys:-(

At least Zogbi is finally putting his rag behind GIP to a degree with the Metalpages item highlight.Kind of smacks of Zogbi realising or knowing whats going on but the tantalite consumer industry perhaps flying blind to this substantial opportunity.But thats VERY hard to believe with JT having been cirulating around these traps for yonks now!!!

http://www.passivecomponentmagazine.com/current-issue.asp

* Component Lead-Times Continue To Increase In June: Page 1

With Ta passives lead times out the furthest by another 4% from 22.4 to 23.4 weeks.Zogbi stated in one of the last issues this was inevitable as it was a DIRECT result of a lack of Ta powder and wire in the supply side.He also reported that the Tantalite price was also more realistically $70.

* Metals Pages Raises Tantalum Spot Price: Page 7

"In an attempt to keep shareholders and investors informed of the tantalum market, junior explorer Gippsland has advised that the UK based Metal-Pages group www.metal-pages.com has announced that the tantalum spot price in June 2010 (as tantalite - Ta2O3), has increased by 8.77% from US$50 - 54 to US$54 - 60 per pound, an increase of some 70% since December 2009. Gippsland Directors are
of the opinion that the Company's 142.5 million tonne Abu Dabbab- Nuweibi projects, containing approximately 56 million pounds of contained tantalum (as Ta2O3), is unique in that Gippsland alone has the resource base to satisfy the long term demand for this sought after strategic metal.

Editors Note: Paumanok Publications, Inc., believes
that the price of tantalite may be higher at $70.00 per pound based upon primary interviews with ore vendors"

* Talison Not To Re-Open Tantalite Mines Until Certain Criteria Are Met: Page 5

Interestingly Talison will not commit to reopening Wodgina/Greenbushes unless they get long term offtakes signed up so as to commit tantalite consumers to financially backing these mines once again.

"Talison will NOT re-open its massive tantalite
mines in Australia until certain criteria are met
regarding pricing and the establishment of longterm
contractual agreements with customers."

"Talison spokesperson Bryan Ellis noted that the actual reopening date of the Australian tantalite mines was
dependent upon the establishment of long-term
contracts with materials processors at a price that
guarantees longevity of the business."
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