neutro The article mainly covers the concern of vanilla and refractory markets while referencing large flake graphite...While end users will determine the end use not all graphite is the same nor is the economics from one resource to the other. To be able to differentiate from peers and secure funding for project finance based on the merit's and economics of resource. Good management also play part in success and the effect of decisions that materially effect share holder value. A good project should be able to secure debt funding.
“Supply is tight and is expected to remain tight, especially in the larger flake, which is the reason pricing remains high. Equities are low and it is hard to finance construction projects when sentiment and equities are low,” he explained.
Recently Walkabout Resource released a revised reserve upgrade. The cut off grade was increased to 10% TGC and increased concentrate content levels by a massive 22% . The updated DFS should follow shortly with binding off take agreements expected shortly after. Mobilization of heavy duty equipment although only on a soft line approach. Treasury funds will kick start the project with the First of RAP payment made. RAP with total payment to made in full from first payment at 6 month's. Its expected that only areas of effected person's will be payed on start up.
The make up of investors is predominantly retail whom recently rallied to make management aware of equity raising concern's. Currently management are working on debt funding with the new DFS to be released possibly as soon as next week. @oznt has been working closely with our T40 network with many others reaching out. The 10% cut off is above what most peers are going to mine. This will enable a low capex,low ROM quarry like operation requiring around 20 million to full funding while our the project offers highest margin per ton mined.
The resource is open in all direction's with a strategy to grow in to known markets from 40,000 TPA. This was a sensible approach to mitigate against start up risk.
