Guys, an interesting point that management reminded me about in...

Guys, an interesting point that management reminded me about in a recent discussion.

The LOI is for a minimum of 20 ktpa.


While I did read that initially, I'm usually personally focused on mitigating the risks to get a funder and to get into production, and I tend to zero in on the "bankable" side of things when I'm having a chat with management, or when I'm posting, so that I post accurately and fairly, and so I don't get accused of unnecessary ramping.

However, given the level of exclusivity that ThyssenKrupp has sought about non-German EU graphite provision, it's highly likely that they will take more. Of course, we can't rely on that for funding purposes, but the minimum 20 ktpa is sufficient for funding purposes anyway.

It does mean that our actual sales will likely be in excess of our contracted minimums, which is going to be great for our cashflow.

Management are in Tanz at the moment. It's very exciting times coming up as we become a producer. Once this LOI is converted in the near future, I wonder how many more sales deals we'll get before the market finally wakes up and realises that there are only a very, very small number of graphite companies on the ASX that will become genuine producers in the near term (less than the fingers on one hand).

KNL will definitely be one of those. (incidentally, the "more sales deals" comment is not ramping either. As per the last release, KNL are in discussions with other targeted customers).