BobGreenfield wrote: Chief, you need to walk it back a little or at least provide a range to the outcome. Don't get me wrong, I don't find fault with the numbers as you have presented them .............. it's the presentation of those numbers without consideration of how you get there that may create a false expectation.
First off, I hope you have looked at Alabama's PEA to get an idea of CAPEX for a furnace, very low meaning multiple furnaces may be the preferred path to scale up. Second, you have to consider whether they will use auto-continuous furnaces, a single unit or multiple units in the ramp up plan.
Will they blend feed from the onset or will they front run high grade stockpiles in order that scale up can be done rather rapidly and self funded.
One way requires greater up front capitalization while the other allows for lower up front capitalization while allowing rapid self funding of expansion to nameplate projections of full scale.
How about you range it .................. start with 1,000 t of the best graphite on the planet to start, along with the yearly contracted marble blocks. It would be the most conservative projection and a reasonable bottom projection with substantial increase upon rapid self funded build out.
When you think in these terms, you can bring context to it by reveiwing the bulk sample returns. Obviously 1,000 t would be easily do-able and implementation of a plant to accomodate that type of run easily funded and scaled up for maximum efficiencies through multiple furnaces.
Not crappng on your numbers. Just showing that a measured approach to scale up still provides some very significant numbers that are easily attainable.
Once in business, then you go full tilt on scale up.
Is your expectation full scale from the hop? Mine isn't but the PEA should show the range which includes your upper numbers.
Would be good to see you range it in order that expectations are managed and not over-reaching at this point of development.
Build out to the numbers you suggest would be within 2 years, hardly a difficult expectation to manage, lol !
the_Chief wrote: Because ZEN KNATS are mathematically challenged I thought I should not leave it up to you to "do the math" as I stated earlier soooooo
5000 tons (with ASTM) X $25000US =$125,000,000US which is $165,000,000 Canuck
OH MY GOODNESS now add in the $13.75million and GEEZUS MARY JOESPH and FRANK, we got some income. lol