Member Info for Andii

14th June

Visiting host

"For me was sufficient to phone somebody to check"

JVL on multiple occasions

"We invite genuine investors to come to visit our online operation in Tuscany, Italy"

(I made the second quote up but he has said as much)

That person was making it very personal. Someone who missed out on something eqtec related previously. Maybe his "contacts" in itialy were incompetent and were shown the door at an early stage before the plant was online.

Far too much hearsay. Idex, Italian pipeline and now a bank loan at quite a good rate for me are signs that the plant is viable and the tech works.

Lorraine does batch processes because they change feedstock so often and it is a university, not a 24/7 working plant. Movialsa is the reference and off the back of which an insurance company have pregiosuly offered technology guarantees (although admitadly this hasn't been confirmed as still the case)

5min15, two industrial customers who use heat nearby to Italy who would be interested in heat offtake which would be an additional revenue stream.

Https://youtu.be/rSZYEhKWdEY?si=BhJbYqF7N663IPDL

6 month old interview with Rolf of MNRG. 3m50 talks about the original refinance plan. There us talk about waste heat upgrade also, buy haven't listened to it all again to find the time stamp

Performance guarantees are in the region of 86% Plant up time or above (from memory)

Movialsa has availability of over 90% per year.

We know that a new team were hired at Italy. How experienced can they be after 3 - 6 months? Good enough to hit 90%?

That's the rational, hopefully this is just a learning curve / training thing and not something wrong with the tech. They have also just moved from winter through to late summer so the feedstock will have changed from wet wood into dry straw which potentially requires adjustment/tuning of the process.

I'm hoping that the performance upgrades talked about is the addition of a waste heat recovery system talked about previously. Playing devils advocate here as there isn't enough information, so performance upgrades could mean

Getting the plant performing optimally from current low base line (plant only online 6 months so feedstock change and moisture content will all need dialed in)

Some other performance gains not yet known, maybe they can squeeze an extra 5% out of the system off the back of University of Lorraine testing/Dr Yoel working his magic

Addition of waste heat recovery which has been talked about as a future planned upgrade

The spreadsheet is mine and just a rough guide. The market caps was last updated in July

Here is a spreadsheet of most major graphite miners.

https://docs.google.com/spreadsheets/d/1FLftXFG0DPw82KsAubO1r4i3hstrjWW3/edit?usp=drivesdk&ouid=111843982053030047661&rtpof=true&sd=true

BRES 100ktpa 14 year operation based on early 2022 PFS came in at $62m capex.

There is talk of I think doubling production? But today's RNS talks about a simpler operation.

Cost of a DFS, not sure. Sovereign's is costing $30m+ but it's a huge operation, low grade and mainly rutile containing so hard to compare.

Probably need to budget maybe £10m for DFS, and hoping it is completed in 2023 is maybe a tad optimistic.

The Americans will mainly be interested in the fines and -100 mesh graphite for batteries. The Chineese are the big players and quick payers but will want a discount. There is other markets around the world for large flake graphite but it will reach saturation at some point as most of the bew capacity due to come online over the next 5-10 years is larger flake. That's why getting offtake agreements signed early is key imo

You mean this transaction here?

https://www.marketscreener.com/quote/stock/STRATMIN-GLOBAL-RESOURCES-12490896/news/Stratmin-Global-Resources-Strategic-Partnership-with-Tirupati-Carbons-Chemicals-20559327/

They paid $1.5m for a 45% share of Tirupati in 2015. The money was for a feasability study.

The company then went bust mid 2017. Graphite wasn't their only business.

Sounds like it was a high risk investment company and not a pure graphite play. Zero revenues 2015 and 2016. Market cap in 2015 was £4m.

https://www.lse.co.uk/rns/STGR/final-results-tdehj1bne14d7m4.html

"The Company's continuing activities did not generate any revenue in 2016 (2015: £445,000 prior to the agreed disposal) and incurred a loss of £809,000 during the year (2015: £2,185,000 loss)"

.....

A shell company and a graphite miner is not really a fair comparison

Based on €13m revenue forecast for 2023 as predicted by Panmure (who have since initiation had the lowest share price a d revenue prediction of all the research providers and were pretty accurate in january figures when conparing to actual results in may

https://drive.google.com/file/d/1jqYD91cTVeYvsJtOY9jTxNNR6iEtNkNu/view?usp=drivesdk

I would attribute €750k to Italy for engineering services during the build and for revenues for O&M plus electricity sales etc.

€1m from Northfork for outstanding works and ongoing construction/comissioning milestones

€250k from Larissa for engineering and comissioning

€1m grant from French government

So €3m revenue

Cost for all of the above €2.5m so gross profit €500k

Loan repayments, interest and financing costs plus admin costs about €2.75m

Ebitda loss €2.25m, potentially as high as €3m ebitda loss.

Revenue target between 1st july and end of December €10m.

€1.125m already achieved from Idex.

Total admin costs for the total year around €6m according to Panmure

FJ

Half of that figure you quote have been performance shares. So actually the CFO has options over £300k worth of shares.

Unfortunately at todays share price, the average value of those shares is more like £50k

PHE only squandered around £7m and their share price movement has been almost nailed on to EQT

ITM squandered hundreds of millions £ and their share price reacted very similarly

£20m was for protos. The tech ology development centre is 10th of the size

A merger today at 25p per share would be gifting a large portion of TGR to TSG.

Better to wait until the share price is £1

Also, how big is there operation actually if they only bought £800k worth of product last year? Can't remember current figures but I remember reading that their operation was ramping up to 1200ktpa.

Sounds like it's still loss making. If the Indian government deemed that operation worth £10m, how do TGR afford that right now? By creating 50m new shares at a discount to tofays share price? For an operation that would be a medium term cash drain?

Here is one institutional investor who has only added to their position over the past 2 years https://vimeo.com/606354545/description

Here is BatteryMinerals discussing Tirupati St the start of a video interview. Remember, they will have done extensive DD and chose tirupati even after a bidding war with another company. And they chose to take over 80% of the transaction in TGR shares.

https://twitter.com/SmallCapsASX/status/1661156132763885569?t=wwmLMqdkbNrK3tB_pM9zeg&s=19

Tomorrowtoday, do you know how much was invested into TSG at IPO? The answer was under £2m. Actually the total figure may be less as the aquasition didn't take place.

Do you know how much to date Capex has been spent on Madagascar? Around £13m. And Mozambique? Around £10m.

There is another company called Nextsource just brought online a 17ktpa capacity. That cost them about £25m. And the C1 cost is higher, with a cheaper basket price.

Here is a table of current Ex China companies and what their relative costs are

https://twitter.com/AndrewMathieso3/status/1691819119077622258?t=XrAWzdgK1TB_LkPeJUFoHQ&s=19

What is your issue again? Lack of governance? They are actually carrying out all the required governance. What they are not doing however is going through the traditional route of having a very expensive £10-20m DFS report done, because they can self fund and build using their own technology. Technology supplied very cheaply and quickly by... TSG.

The turn around from aquasition of Madagascar assets to a position of ramping up to 30ktpa profitably has been remarkable. Another miming company with expensive management would have taken 2x or 3x as long.

Have you done your homework? Please don't follow these sensationalist voices on twitter. There is a tiny minority want an ESG. And they don't want it for the good of the comapny. They are predators, want the share price depressed for a cheaper buy in price.

Please explain what management could have done better against Indian regulators, against supply chain issues, cyclones, falling graphite prices. Please provide an example of a better deal than the Suni Resources one carried out recently? I believe Rio Tinto bought 15% of sovereign minerals for around £15m, maybe start there. I think they are about 3 years away from first production still require to compete a DFS and on top of that, require £300m capex.

Had to laugh at this comment

"Looking at last year’s accounts #TGR could double, triple or quadruple revenue and it would still be loss-making. Revenues need to increase roughly eight-fold to just get to breakeven."

How can anyone make such comments without doing some research to see what Tirupati spent money on in last year?

If what he says is right, I'm looking forward to the assets growing another 1200% and production capacity growing another 300% this year 🍾🍾

That's a ridiculous statement. Have a look at the share holder register please.

Private investors hold under 25% of the shares. How many off those 25% are disgruntled shareholders? Surely a percentage of "disgruntled holders" sold out over the past week? Clearly it wasn't the 75% of shareholders selling out.

The wave of negativity is actually worse after the last two positive RNS's? Isn't sentiment supposed to rise on good news not fall???

As in brought the cost per T production down 15%

The 7-15% they just lost they probably gained by scaling up productuon to approaching 50% capacity