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In 2011 Peter Epstein, CFA, left a $3 billion hedge fund where he was a senior natural resources analyst to help increase awareness of a number of natural resource companies in which he's invested in. 

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Alabama Graphite Corp., Exclusive CEO Interview, What Makes This Company Unique?

Date: Tuesday, January 12, 2016 12:39 PM EDT

Regarding head grade, as far as AGC is concerned all that matters is: the final product’s battery performance and can that material be produced at a competitive cost. For example, take a 99.99% pure one-ounce gold coin. No one is going to look at that bullion coin and say ‘Hey, wait a second, what was the head grade of the gold deposit where the gold in this coin came from? That may seem like a silly analogy, but it’s entirely apt. The final product’s performance and cost is what matters. 

Given our extremely small production targets, we won’t enjoy particularly low per-tonne costs at the primary processing stage. Having said that, Coosa has near-surface, oxidized and weathered material that’s extremely soft. So soft, in my opinion, it will not require any drilling or blasting. Importantly, we expect to more than make up for a mediocre cost structure at the primary processing stage with a low all-in per-tonne cost after secondary processing. The PEA indicates all-in costs of US$1,555/tonne, and an average selling price of US$7,250/tonne.Clearly there’s plenty of skepticism directed at emerging graphite players and perhaps rightfully so. However, we believe our plan to commence small-scale production is achievable and that there’s a vibrant market for the entirety of our output. Further, we believe that with a reasonable initial CAPEX requirement (the AGC PEA indicated the lowest initial CAPEX requirement in the graphite development space), AGC’s prospects for financing are stronger. 

Is there anything else that you would like to share with readers? 

Baxter: In summary, Alabama Graphite Corp. (TSX VENTURE:ALP) (OTCQX:ABGPF) (FRANKFURT:1AG has a unique approach to graphite production, as detailed in our PEA. Instead of facing fierce competition at the primary processing stage where flake size, purity, head grade and other metrics dominate, we intend to deliver small scale (5,000 Mt/yr in years 1-5) production of CSPG (and by-product PMG). We believe, our flake is ideal for producing CSPG, with demonstrated yields of ~75% in lab testing. 

Security of supply and geopolitical stability is increasingly important, that’s why we’re excited about our green, Made-in-USA opportunity. Our proximity to existing and new U.S. battery makers is a compelling factor in the risk/reward analysis of the investment thesis. Our management team, Board and Technical team is second to none. We look forward to releasing the results of our CSPG testing in batteries in mid-to-late January. To learn more, please see this excellent [Video Interview] (Note: 1st minute only in German).

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