I guess the news, 3 Oct and 10 Oct, was too good to be understood.
Maybe the MM’s don’t understand the word “Synthetic” in the “Synthetic like Characteristics” term.
Maybe Artificial, man-made stuff compares to Albany, that costs a minimum $5000 to produce would be a better description? This Man-made stuff, which then can be sold to End-users for $7000 - $20,000/t and ultra pure 6n for $30,000 (nuclear)
I am sure ZEN’s Graphite at Albany will not cost $5000/t to mine, produce and process, more like under $1000 aisc.
MM’s are pissed at no free shares as Zenyatta holds back on financing and many back the loser Flakers, as they now try to protect their misplaced investments. The Graphite Industry will reward ZEN, whomever wishes the economic advantages of leverage in the marketplace, based on costs to produce and product pricing alone for this Synthetic-Like Natural Graphite.
If a Synthetic Producer offers product for $8000/t (Li-ion Batteries), ZEN could sell for $7000;
If a Synthetic Producer offers product for $12000/t (Electrodes), Zen could sell for $10,000;
If a Synthetic Producer offers product for $30,000/t (Nuclear), ZEN could sell for $25,000 etc.
If the avg Synthetic Industry Profit Margin is 60% ($3000) with costs to produce at $5000, they will want to protect their market. What if ZEN contracted at $5000/t to an End-user, whom previously paid $8000 to a Synthetic Maker. This Producer now has ZERO Profit Margin while ZEN still makes $4000/t.
End-users on the other hand, will look to any Graphite Producer with Synthetic- Like characteristics and the Graphite that will make end-use products more economical against the competition on price, if the standard is the same. Basic Economics and economies of scale!
Synthetic Producers and End-Users will take notice of Zenyatta!
Cheers, Mark
