Great Lakes Graphite Inc GLKIF

RE:interesting information from the report

[DoctorFouad]

However their 20% discount rate for NPV (20M$) is a ridiculous discount rate....12% would have been already high enough. some may say there is high risk, but IMO the risk here is binaary, either they will succeed finding buyers, producing and selling, or they wont succeed. 20% discount rate is insufficient to take into consideration the risk of failure, so why bother with such a hig number in the first place ? 

DoctorFouad wrote: interesting information :

"Management estimates an annual demand of 80,000 – 100,000 tonnes of micronized graphite

in North America, of which, they expect to be able to supply approximately 10,000 tonnes.

Currently, the two major suppliers of micronized graphite in North America are Superior

Graphite and Asbury Carbon. GLK believes they will be able to attain a share of the market

as their products will have more consistency in quality as all of their raw materials are

expected to come from a single graphite mine in Brazil. 

They believe they will be able to sell 3,000 – 4,000 tonnes of micronized graphite per year. 
In order to increase the demand for

their products to 10,000 tonnes per year, management estimates they will have to further

purify the micronized material to 99%C, through a thermal process. In August 2016, the

company announced positive results of thermal upgrading of graphite feedstock

material sourced for the facility. Tests on micronized graphite samples showed that

thermal purification could increase purity levels to 99.99%+, with the best result

returning 99.997% purity. As thermal process requires high energy, and the company

intends to conduct the process in a region where electricity prices are cheap. Management

will make a decision on the location when they are in a better position to gauge the demand

for their production."