First, thanks (Quincey) for the InvestorIntel report. One minor correction: InvIntel says, "Flinder to True North Graphite". It should be read "Big North Graphite".

It looks like Flinder is looking for additional resources for future production. And by spending ~$8M to get the resources plus the plant equipment which can be put back in operation in short order is not bad an acquisition. The resource in Mexico could be considered as an alternative operation to spread out the risk in case the current plant runs into difficuties due to various reasons, political included.

Second, shall ZEN follow the example by doing something similar by considering taking over e.g. ERA (cap: $11M, approx 10% of ZEN's Cap, small dilution, assuming share exchange) for 40% of the high grade, high purity vein graphite Regedera mine in Sri Lanka? There are pros and cons for this.

The previous production was small. But, this could be scaled up by adding more equipment. If production can be expanded to 20,000 tpy, the 40% share plus "management" fees for the other 60% could be substantial. Additionally, if further processing is carried out to produce value-added product, then additional profit could be made. ZEN would need to go though the number to see if the scheme would produce some attractive profit, which could be used to finance the Albany operation.

The above involved real dollars and cents, but a package of 2 operations together, one (Ragerada) is producing, the other (Albany) would follow in as few years, may be perceived by potential suitors as a more attractive target for a TO. Noting that the 2 deposits contain natural vein-typed graphite. One good way to consolidate to create a monopoly?

Just speculating.

goldhunter