Valuation Disconnect - 3 parts, page-3

*apologies for multiple parts, HC saying message too long**

Part 3:

4. China will take all of GPX's graphite, not just the expandable stuff
So in securing their supply of expandable, the Chinese govt will also be securing an alternate supply of multi-purpose graphite should they ever need it



5. The expandable graphite market is larger than the entire battery graphite market
China National Building Materials (CNBM) have estimated their domestic flame retardant building materials (FRBM) market at 5m tonnes pa, impregnated with 5%-50% of expandable graphite. Adopting a weighted average of 10% = 500ktpa of expandable graphite, versus 300ktpa of battery graphite (from Syrah chart above)

6. GPX can supply the entire Chinese expandable market for 30-50 years
VTEM analysis confirmed the opportunity at Chilalo which is composed of multiple layers of interpreted graphite horizons ranging in thickness from 50m to +200m. The horizons at the Chilalo Project alone, account for over 54 lineal kilometres of strike. Only 2km of that has been drilled to date. The rest will be progressively drilled once production commences, to keep up with growth in Chinese FRBM.

That's why I believe there is a massive valuation disconnect between GPX and our battery graphite peers.