|Musky imo has been telling everyone for a long time. I started becoming a believer a few years back when musky used Stockhouse for posting his predictions under the alias of Taylorlee. So Glory has explained how Musky has come up with his pricing models, I want to highlight another point that musky makes about the size of our resource. |
So for simplicity sake let just say we have 1m tons indicated and 400k tons of implied resource. Musky has said that there is much more Graphite than meets the eye in our deposit. If we go back to the PEA the deposit had robust economics as per RPA using only the indicated resource of 1m tons and a price per ton of $7500.00 usd. As we all know now that $7500 price is completely wrong with the advent of graphene. For arguments sake let use a graphite price of $30,000/ton. The point is that as the price/ton rises, more and more tons in the Inferred category becomes economical. As the price per ton rises further the tons below the cutoff grade become economical as well. So when Musky says the deposit is close to 2m tons, I would suggest that his theories are sound.
Now lets look at what is missing from the Zen picture. That would be the annual demand numbers for this special graphite. In my mind the demand will come in spades via the cement industry and the rubber/plastics industry.