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To: LoneClone who wrote (10398)	5/10/2014 7:03:07 PM
From: LoneClone	Read Replies (1) \| Respond to of 24857

[Graphite] Flinders Resources secures first sales contract for Woxna graphite mine Tue 1:14 pm by Deborah Bacal proactiveinvestors.com Flinders Resources ( CVE:FDR) has signed an initial sales contract with a former European customer for its graphite production that is about to restart this July from its Woxna mine in Sweden. The Woxna mine is a historical operation in central Sweden that operated from 1996 to 2001, when production was halted due to falling graphite prices. Since then, the project has been held on care and maintenance status, with Flinders planning to restart production by July of this year to coincide with an expected rise in demand for the strong material. The company said Tuesday that it has been working to re-establish its sales and distribution network throughout Europe, with the project strategically located in a gateway to the EU graphite market. Flinders did not disclose the name of the European customer with which it has already signed an initial contract. The company did say, however, that the first contract does not represent a material portion of its production capacity and that it is anticipating more contracts to be signed over the coming months as graphite production begins this summer. "Securing our first sales contract is great news and a vote of confidence from our former customers," said president and CEO Blair Way. "Our marketing endeavors are starting to have an impact in line with our restart of production. This is an exciting time for the company as we become the first TSX Venture Exchange listed company to produce and sell graphite product." The company said that customers are seeking "stable and reliable producers" that can consistently meet quality standards and delivery schedules, and it has been meeting with both former and potential new clients as part of its efforts to re-establish its sales base. The project is located just a three and a half hour drive north of Stockholm, and less than a two-day drive to most customers in Europe, meaning reduced transportation costs. With production capacity estimated at 16,600 tonnes per year based on a preliminary economic assessment, the company is aiming to capture some 10% to 15% of the European graphite market, with the ability to expand capacity to easily support some 30,000 tonnes of flake graphite per annum. According to the PEA released last September, Woxna is forecast to deliver premium large or extra-large flake graphite—the type of graphite used in lithium-ion batteries found in electric vehicles --- with 88% to 95% purity over a period of 13 years. The project’s financials are just as robust, with the economic report predicting a net present value of $26.6 million after tax, at an 8% discount rate, and an IRR of 34%. Average production costs were pegged at $662 per tonne of graphite concentrate, while start-up capital costs are projected at $16.7 million, including contingency and working capital. Shares of Flinders have almost doubled year-to-date in anticipation of the commencement of production.