Why MNS will succeed

Fellow MNS holders I wanted to attach a response I made to another poster on another ticker code.
This response is not intended to be derogatory to that poster or his stock however it is relevant to the graphite market and the lack of signed Offtakes Worldwide.

I can't be clearer in stating that the reason there have been no signed Offtakes is purely due to a lack of quality Jumbo Flake Worldwide.

Their failings will become our Triumph.

Always remember that MNS has given most graphite plays a 2 year head start. Never forget that.

Their failings over time should never be used as an argument against MNS - We are talking about chalk and cheese.

Anyway here is my response as below -


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Other posters comment -

("so maybe research it again and it may be excellent deep value now that its halved. i would be more worried about a stock with dubious chinese MOU's halving.")

My response -

I think you need to consider a number of things before throwing out broad sweeping statements. Before you read this I believe KNL will come thru due to Flake Distribution, however they will produce as a boutique supplier.

1. Firstly if you look up the businesses MNS has signed MOU's with you will realise the enormity of these organisations. Multi-Billion dollar organisations who are well respected and seen as LEADERS within that country. I implore you to look up SINOMA, and SINOSTEEL & Dallan Intercontinental and look at their revenue streams.
Multi Billion Dollar Organisations - Not European Traders or Universities.

2. These MOU's were inked in the past 6 months and will be converted to signed Offtake Agreements very very soon. MNS has only been active in the Graphite Space for 2 years and will be the first company worldwide to sign such deals. This is my researched belief.

3. Syrah have been unable to convert any deals into signed offtakes and have had 4 years in this space. Their MOU's were for small flake/amorphous product with a lower selling price. Their initial deal with Chinalco at a proposed sell price of $500 tonne (as confirmed by Tolga Kumov at Shaws Graphite Presentation in Sept 2014) has fallen thru as it had a 3 month signing period that expired in June 2014. Their second MOU with Azmet was signed 6-8 months ago with zero update. Azmet is nothing more than a middleman on selling the graphite top other 3rd parties.
MNS could sign 10 such deals tomorrow with 3rd parties however what is the point? It is a smokescreen.

4. Just because Syrah have been unsuccessful in getting any signed deals in no way represents the basket of goods MNS has to offer. Syrah's product is contaminated and is being valued based on its vanadium and not is graphite. The graphite Syrah has is vast, however the flake size distribution is nothing to get excited about. What is the point of having 2000 years supply of ma product no-one wants? TON is quickly learning this lesson.

5. China has an abundance of high grade graphite in existing mines and stockpiled.
This graphite is mainly amorphous/fine/medium flake at best.
They have MINIMAL Jumbo flake free of deleterious materials.
Why would they even talk to MNS when they had not even achieved a JORC at this stage in mid 2014? The reason being the flake distribution MNS could offer.
Once these initial results were greatly improved upon towards the end of 2014 the writing is on the wall. They will sign on the dotted line..............

6. Approx 87% of the graphite is in the Large to Jumbo category.
Unmatched worldwide. Flake distribution is king.
Supply and Demand is King.
Look at the price projections from Stormcrow moving forward.
There is a reason Jumbo keeps rising in price and fine/amorphous goes backwards.

Cheers

Matt