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Gold/Mining/Energy : Zentek Ltd. -- Ignore unavailable to you. Want to Upgrade?


To: I_C_Deadpeople who wrote (6984)1/15/2016 11:16:05 AM
From: Siegfried1 Recommendation

Recommended By
Tbill89

  Respond to of 54991
 
Right on I C.That will make the best business sense.



To: I_C_Deadpeople who wrote (6984)1/15/2016 12:00:31 PM
From: Garth11 Recommendations

Recommended By
Canseco
cbs12311
ejasons
Glorieux
IronMan07

and 6 more members

  Respond to of 54991
 
Agreed. If Zen goes to bring the deposit to a mine on their own, they will likely offer the initial contracts as a discount to normal synthetic rates in order to secure contracts and market share. Once the mine is producing graphite and the company has cash flowing in they would likely flip strategies to extract a premium over normal synthetic prices since the "Naturally Pure" Zenyatta graphite is comparable to synthetic (so far so good) but also environmentally benign.

There is no reason beyond establishing initial contracts for Zenyatta to discount the sale price and pass along the cost savings to end users. If anything we can charge a premium because we will be the worlds only source of high end green graphite.

-Garth