Comparison of Lac Knife to Bisset creek: Reasons why it is a virtual certainty that Lac Knife gets built based on a just released feasibility study:
- Pre-tax Net Present Value ("NPV") of $500.9 million
- payback period 3 years
- The Project's additional Measured, Indicated, and Inferred Resources will continue to be evaluated to develop the mid- and long-term growth profile for the Company.
- "It confirms that the project hosts a graphite deposit with an average graphitic carbon (Cg) grade of 99.7% in +80 mesh flake concentrate, which is exceptional in this industry.
-AND MOST IMPORTANTLY: Lac Knife is unique in that all natural flake graphitic concentrates produced with flake size above 200 mesh (75 microns) size are more than 98% Cg. This allows Focus to divert finer sized products that would typically be difficult to sell due to their flake size to higher value-added products such as spherical graphite for batteries, due to the high carbon content of 98% carbon.
Let’s compare this to Bisset creak owned by the company you own (NGC) but are so insecure about that you come here in a desperate, futile attempt to discourage investors with lies. After 10 years of this is it not obvious that you are not getting anyone to care about NGC?
BISSET CREEK: (feasibility study from 2012, 11 years old???)
My first comment is that there is a reason the executive summary is absent oif any comments regarding the potential of the deposit.
+48 mesh: 48.4 % at 95.1% C o +80 mesh: 28.2 % at 94.5% C o +100 mesh: 4.8 % at 97.3% C o -100 mesh: 18.6 % at 94.8% C
Bottom line: nothing over 95% carbon.
“Table 1.3: Bissett Creek Flake Graphite Deposit Mineral Resources (Diluted) Indicated Inferred %Cg Cut-Off Tonnage”
Grade Cg% from 1.8 to 2.5. That is as remarkably low as lacknife’s 99.7% is remarkably high!!! (I am no engineer, but I do know that 2.5% Cg is not minable.)
AND LAST BUT NOT LEAST.....IRR.
Lacknife IRR was calculated with a sales price of 2,180 $CDN /ton producing an IRR of 22%. I refer you to page 31 of the Bisset Creek FS. Using a sales price of 2,100 $CDN gives an IRR of 13.7%. So, I guess if 22% won’t move forward you can all but guarantee that 13.7% is not even worth considering.
Oh, but wait, NGC has bought an operating mine (not even close batter grade material) for almost nothing. A deal? Not when its losing money hand over fist and will likely bury NGC and any unfortunate investors.