RE:RE:Just some thoughts WB Thanks, I incorrectly blamed Madagascar for not providing a mining permit for to their acting slowly.
Madagascar's recent political problem – dating from 2009 through Jan of 2014 - when a new elected president took office was the reason EGZ did not obtain a permit - during that time frame and later - as the new government had to form its policies. Additionally the situation had to effect EGZ's share price and corresponding dilution.
A further problem concerns the complexity for new entries in the graphite space to deal with highly experienced off-takers, who've been in the business for many years. In other words new companies are at risk of signing low ball off-take agreements.
The cost for EGZ to place a mine producing 53,000 tonne of graphite concentrates of various types has first to be reinforced by The Staged Development Plan so as to insure an equitable price for it's concentrates. Then only at the proper time, should a lower than planned reverse splits be considered.
A JV with a reputable group would lower EGZ's cost of mine development and minable reserves should be enough for all concerned.
The life of EGZ's proven and probable reserve is 26 years, which gives graphite concentrate production at 53,000 tonne annually. Its easy to see that kicking production up to 106,000 tonne annually would still allow a mine life of 13 years. I believe that such would be acceptable to both the JV partner and EGZ's shareholders.
Additionally conversion of a portion of the large measured and indicated resource to a proven and probable reserve would extend Molo's mine life considerably.