Hi Croc, all of these phrases and terms that you’re coining...

Hi Croc, all of these phrases and terms that you’re coining (“gunshot ready”, “debate ready”, “now factor”, “golden triangle”, “triple trifecta”) sound like the sales pitch of a dodgey salesperson.

Tanzania is rich with high-quality large flake graphite. There are a number of companies that all have very good resources. The reason KNL appeals to me more than others and I consider it a better investment is mainly due to three factors;

- Focus on non-Chinese offtake agreements.

- Given the the specific requirements from end users, having an in-house graphite expert.

- Targeting traditional graphite markets and expand into the high growth battery market.

There are Tanz G companies that have published higher basket pricing and IRR’s, lower CAPEX requirements and so on in their feasibility studies, and on paper it looks impressive, but I’ve been fooled by these kinds of feasibility studies in the past. They often run over budget, don’t meet production targets, don’t achieve desired grades, OPEX ends up being higher than published in the feasibility study, the list goes on. Kibaran has been very conservative with initial production targets, CAPEX, basket pricing, OPEX etc. Furthermore, KNL’s BFS had the ruler run over it by bank appointed independent engineers and underwent rigorous scrutiny. No other G company’s DFS or BFS has undergone the level of scrutiny that ours has. This gives me great confidence that the figures published in our BFS will be achieved. I don’t have that same level of confidence in the feasibility studies of other G companies.

As for CBA being a substantial shareholder, that alone does guarantee KNL success, but what it does mean is that after conducting their own research and due diligence they have come up with the same findings that I have, and that is that KNL presents the best investment opportunity of the Tanz-based G companies. I think it’s fair to say that any investor gains a degree of confidence when sophisticated or institutional investors concur with their investment decisions. Whether we are right or wrong, only time will tell.