Great Lakes Graphite Inc GLKIF

RE:RE:RE:RE:RE:RE:How much will they sell?

[AliMcKenzie]

Let me try to explain it to you in simple terms.

GLK will be buying flake graphite, grinding it to a small size, and reselling it. The product they will be making is known as micronized graphite.

As you correctly point out, total US graphite consumption is around 55,000 tpy. Of that about 31,000 tpy is flake graphite. Most of the major applications for flake graphite do not require the graphite to be micronized. The market for micronized graphite is only a small portion of the total market for flake graphite, certainly less than 10%.

The market for GLK's products is that small portion.

Floridas2000 wrote: - You used Alabama's PEA which is talking about purified micronized graphite

- The fact that SGL, Graftech and Asbury sell many products is my point exactly.  There is a large and wide range of uses for graphite.  You're telling me GLK with it's connection can't make a million dollars a year when they making over 70 million a year???  If GLK can't sell micronized graphite then NO-ONE should try to sell graphite.  

- You're talking about Syrah Resources who's mine is big enough to supply the entire world's graphite needs for 100 years.  Not only that you have several Australian graphite mines - oh wait that's not true.  Several of those mines either ran out of money or had their production halted.  But the logistics of sending graphite from Africa to US is more expensive.  Also many companies are trying to preach this made in America brand which gives hope to N. American companies.

- If the market was as bad as you believe no-one would be in it.  The key to selling in this market is to make sure it's value-added meaning you can fill the specific need of your clients not just micronize graphite.  Any bobo can micronize graphite but to be able to sell customized graphite is a value add. Also first to market is always ke.

- Your analogy using Loblaws and Metro is ridiculous.  There are way more items at a grocery store compared to the uses of graphite.  Try harder.  How about this to help you out.  Comparing it to one brand of car sold by Chevrolet who have many brands.  But guess what - by using extrapolation people can do just that.  It's called math and finance and determining a percentage of the total graphite market you can figure out a value for micronized graphite and considering most of graphite used in the market is used for industrial purposes until the gigafactories go online then you can figure out the global percentage is greater than whatever ridiculous number you said.  I read through your report and the N. American market is bigger than you stated for industrials.  

North American graphite consumption consumed 55,000 tons in 2015.

Article discussing N. American graphite market and the need for more graphite in the future.

- Now which graphite company are you pitching?  Alabama?  Focus?  Zenyetta?  Canada Carbon?  Ontario Graphite???