Simon Moores Comments on Flinders’ Woxna Restart

Independent consultant Simon Moores published a note on the recent news that Flinders Resources Ltd. (TSXV:FDR) has restarted graphite production at the past-producing Woxna graphite mine in Sweden.

He notes that “[t]o firstly produce a consistent product and then build a network of buyers are now the major challenges facing the company.”

Moores also comments on what the restart means for the market:

With a total flake graphite output of 375,000 tpa in 2013, the Woxna operation will account for around 3% of total world output at capacity.

While that number at first may seem insignificant, in context of the European market, the importance of the new operation becomes clear.

Europe only has one flake graphite mine it can rely on (not including Russia ). The underground operation at Skaland in Norway produces on average 9,000 tpa. Smaller volumes are produced from a mine in Germany but it is a captive source for AMG Mining, while Ukraine ‘s future remains unstable due to the conflict in the country.

Flinders’ start up has in essence doubled Europe’s capabilities to produce flake graphite in a world which is eager to reduce reliance on the dominant supply from China , which accounts for 60% of output.

Click here to view the note on LinkedIn.
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