Tweet, page-126

I think Lindi has good graphite but it doesn't have a resource that is conducive to a scaleable mining operation. The selective mining method proposed in the DFS will be susceptible to ore loss and dilution, and the small plant (per the DFS) will potentially not have the capacity to increase production to produce 40,0000tpa. Ore loss and dilution will result in increased mining and processing costs to produce the desired 40,000tpa, which will obviously adversely impact the profitability of the operation.

IMO Lindi does have fatal flaws and I have maintained this view for the past four years. At the time I was looking to invest in a graphite play it came down to KNL and MNS. Ultimately, I decided on KNL due to their realistic planned production and the quality of their partners. MNS also has a terrific project but their plan to produce 240,000tpa would have flooded the market and they lacked the quality partners (though POSCO's interest kept me monitoring their situation). BKT has since emerged as one of the strongest Tanz-based graphite plays. Lindi and Chilalo are my least preferred graphite projects in Tanzania.