EGR 2.78% 18.5¢ ecograf limited

Flake Distribution between graphite peers

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    I thought I'd update a little table, taking the info from the Paterson report, and including the results today from TON. Note though that this is a KNL thread, and intended for comparison by KNL holders, and not intended to start useless posts that seem to occupy the TON threads at the moment.

    There are a range of different flake size distributions, and some companies (KNL, SYR, LMB) are good at putting up more detailed breakdowns, while others are a lot more "vague". So I've used only 3 distributions so we can quickly see like for like.

    In short, TON's results aren't better than SYR's in terms of quality. (They may have more tonnage, I don't know, but regardless, that's not my point here). The standout in terms of quality is still KNL.

    In particular, I highlight a number of references (by KNL, by Stormcrow, by Patersons, and others) referring to the sub-75 microns as likely to be unsaleable (or at the very least, selling below opex cost for that portion of the deposit), which is in italics in the little table below.

    Column 1 Column 2 Column 3 Column 4 Column 5 Column 6
    0 Company KNL SYR VXL LMB TON
    1 sub 75 microns 15.80% 25.60% 40.00% 53.53% 31.00%
    2 75 microns+ 34.00% 33.40% 60.00% 18.82% 32.20%
    3 150 microns+ 50.20% 41.20% 0.00% 27.65% 36.80%

    I've highlighted in bold the 150+ microns bit, as that's the bit that is going to lead to margin/profit. The thing that stands out for me is that in terms of quality (not quantity), KNL still has the lowest percentage of unsaleable product, and the highest percentage of the good stuff.

    PS two points on the table. VXL are showing as only 40/60, because that's all they've told the market. There is no guide to breaking down the 60% between the 75+ and 150+ distributions, but my guess is it will be approx 25%/35% for the 75+/150+, but that's just a guess. Also, SYR adds up to more than 100%, because I took it off Patersons report, but the difference (0.2%) is immaterial.

    In summary, KNL have one of the best (if not the best) distributions in the published graphite deposits. Our business will have a higher than average margin, and ultimately profitability. And if (when) there is a downturn in the future, the quality stuff is the stuff that will sell first. Every new release from competitors further validates the quality/fundamentals of our deposit.
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