Thanks for your posts FTN! 100% agree that an offtake here would be marblelous for both parties! Let's say that Capex requirement is real and we need $411M to be cashflow positive. Tesla, which is always innovating and looking to cut costs sees this opportunity, our graphite works for them and so they take the plunge. They fork over $411M in tranches as needed and ZEN skips PFS and FS and go straight to permitting and mining. This could probably be done in 18 months. Tesla in return gets 10k tons per year for say 20 year with the option to continue to buy from the company at market rates at that time.
So now Tesla would be receiving 200k tons of ultra high purity graphite for $411M or $2055 per ton. They have a fantastic saving on their cost per ton, a guaranteed long term supply, a green supply which they can market! This is a huge win for Tesla but also a huge win for ZEN and us shareholders.
With no financial risk, no dilution and fast tracked to production, how high would our stock jump?
The Choo Choo is still here, the graphite in the ground. Do not let the share price fool you into thinking it has all melted away!
Glorieux
