Wow, lot's of activity with off takes being signed, imminent Mining Finance speculations etc..
Congratulations to MNS & SYR for signing their Chinese Off Takes, so naturally some KNL holders small & large have jumped ship as the grass looks a lot greener elsewhere at the moment and I have to admit
I was tempted for a while myself.
SYR was not a consideration as SP is already to high and their Yearly production target is to high for my liking (ie to find a buyer for full yearly production) then MNS came along from left field with a great resource and quality to challenge KNL's and they announced 2 large off takes, so we lost some holders and they can't be blamed and wish you all good luck.
These are some of the reasons I'm not selling KNL, MNS is already talking of securing finance shortly without having completed vital steps like Environmental Statement etc...the only way I think this could happen is via Finance from their Off Take Partners and I believe the Chinese have Political influence in Tanz to possibly try to fast track things but that would sour relations for the Tanz Gov with all the other players. I think the only way finance will be given from the Chinese side is via major dilution to current MNS holders and once the Chinese control finance and off takes, well make up your own mind...
Which brings me back to KNL.
I think the reason why KNL Management get on well with the Germans is they work the same way:
Don't make much noise, know what they are doing, research the product-make sure it works-check again-once sure and they know they have a sustainable business "for all parties involved" then make the announcement.
The Mine start up cost is low and production/ sales targets very achievable which brings me back to
the same important conclusion every time I try to compare KNL with other options is the RIO (return on investment)!!
Since the Chinese have secured their share of Graphite I have become more confident that the Germans now will make sure not to miss the chance of securing their supply of some of the Worlds best Graphite, also don't forget America and Japan they are looking as well...
Year of "The Goat" or "The Adler"?
KNL Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
