RE: scissors14 I don't see how a binding off-take agreement is possible for FMS at this point in time in its development. It would have to be conditional at best because there is no scientific proof of what quality of graphite can be consistently produced and in what quantity. That is why metallurgical testing (53% historically not commercial grade) must be completed and a pilot plant study is conducted. Then there is the permitting as well and there are environmental concerns (eg: sulfur content, acid and animals) with Lac Knife that must be overcome.
How could an end-user agree to something that can't be promised/guaranteed at this stage and is maybe 2-3 years away? Maybe an MOU or LOI could be announced but they are meaningless and non-binding and just serve for PR purposes. Also, companies like Superior and Graftech are like brokers who seek to buy graphite at the lowest price possible to fill custom orders to sell at the highest price possible to end-users. They are NOT who you want as clients because they make most of the profit.
It generally has to be a specific large international end-user(s) who wants a guaranteed supply of proven quality graphite that it can depend on for decades to come so it can in turn guarantee a consistently high quality product to the consumer. Also, it will spend millions on its manufacturing process based on the qualities of the graphite it will consistently receive. So the science on the graphite it will receive has to be completed first in order for it to plan and budget its production profitably/correctly.
IMO this is why NGC is the current leader in the graphite space today. It is following these steps without a lot of hype and is down to the final stage - a bankable feasibility study that is expected this quarter. Management is key. This team is finally getting it done after several incompetent and/or dishonest management teams over the past ten years.
I'm not saying FMS won't get there, it is too early to say. But the hype is ahead of the science in the case of FMS. Management comes from IR/PR backgrounds so what else is to be expected? Big shareholders with cheap FMS paper are selling every day and making up to several hundred percent on their investment right now regardless of whether Lac Knife becomes a mine. It's the small shareholders that are at risk.