Rolly SYR are struggling to make profits from battery markets...Retention of flake size determines a higher basket price while it is true conversely this is not the case....
It depends on your targeted market where SYR target battery markets that underpin there economic value Walkabout Resource target market is very different.
Target Market's
conversely this is not the case....SYR target the battery market where flake size retention is not a key model of their economics (75-180 micron's)You can grind down but not up.While SYR have outstanding TGC level's at 16% TGC they do not have a great distribution of above 180 micron's. Lindi graphite differentiates by the graphite being suitable for almost an entire different market.
What important's for SYR is to not reduce the yield during the grinding and polishing process.Up to 66% of yield can be lost in this process where more material is required to make up your short fall. Purity levels at 94-97% TGC suitable for expandable markets require less grinding with retention of flake size for Lindi product at 93% TGC.
Yields go down while run of mine cost goes up it's a simple equation when looking where the DFS/BFS are used to support a solid business case the reality may differ.
Target Market's
To differentiate SYR have lead the vanilla battery markets Walkabout Resource will lead the expandable and niche markets product limited in nature. This Resource is set up to grow into known markets with competitive advantage over all peers. It is from surface high grade and open in all direction's. Current 24 year mine life with southern end at an inferred level with known high grade.
Being cost and quality competitive over all peers de-risk's the project where we could lose
50% of yield and still be competitive against other start ups.
Mr Benson has commented that full funding expected by first half....Share holder groups also keen to step up. A high yield bond may just do the trick and avoid giving equity away.
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