Critical to the development of any opaquely traded commodity project is establishing an end-customer network. To this end, Triton Minerals Ltd (AX:TON) has forged a number of pre-commercial agreements covering up to 80% of the output from its future Ancuabe graphite mine in Mozambique.
This note highlights these memorandums of understanding (MoUs), as well as some background to the companies with which the MoUs were signed. We also consider the effect of mining higher grades for longer from the company’s T16 deposit a key future catalyst to our valuation.
Strong support for high-quality Ancuabe product
Ancuabe graphite has been proven by metallurgical testing to be highly suitable for use in expandable graphite applications. In particular, the T16 deposit is a key focus as it could yield the highest run-of-mine grades (current indicated grade is 7.4% total graphitic carbon [TGC]), compared to the T12 (5.8% TGC) deposit that is also considered a key ore stream to the future Ancuabe mine.
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