Dejavoo,HA International and Possehl have been the two world...

Dejavoo,

HA International and Possehl have been the two world leading suppliers for the foundry industry for over 50 years. Both have done extensive research over the past 4 years in conjunction with some leading foundries around the world. If they've signed up to buy the Spherichrome production 18 months from first delivery at double the foundry price and 75% of the zircon price, this tells me Spherichrome has a strong future within the industry.

Now for financing to have been approved, they needed to obtain 40% commitment which was achieved. Now, Phil Garratt wrote in the quarterly that "the majority of the companies production has been committed with a small portion held for possible increases in existing customer demand and spot sales". So the majority of the new production numbers (95t) have been committed, meaning that companies are lining up to buy it, they just need to deliver it.

What you need to be mindful is how Phil Garratt words all his statements and how low-key he his. We've got miners on the ASX promoting the price of Zircon, but yet no one has a JV partner or the money to start a mine. Phil Garratt comes out with "we're benefitting", he doesn't pump that its going to add $10m every year to the bottom line. He also outlines a 40% uplift (95t) in production figures from his february 2010 report, again low-key because he has always stated the design was for 70t. I know from experience that you can't be "lucky" and increase those sorts by that size without having some sort of idea.

So what I'm saying is this, if you want to wait and see the numbers, I understand, they will come but may be a few months away. But this management have clearly shown on a number of fronts that they are a low key, head down, bum up operation, dealing with the two world leading organisations in the foundry industry, backed by two leading finance institutions and a tight shareholder base that fully understand the story and where this company will be in 12 months. So when Phil Garratt says "strong interest in Spherichrome was evident and company reps completed a full schedule of meetings during and after the event" I believe it? Why wouldn't I? He's never pumped any part of the project yet and I can tell you that the majority of the shareholders agree, look how many of the options are for sale that are held by the long term holders.

As for your previous post about IDM and being a takeover candidate, I hope that never happens, the future is just too bright.

Regards
Pep