Hi antlizzie - I can't offer stronger arguments, but I have some thoughts about the process optimization (or tweaking) I'd like to share with you and others.

I suppose it's relatively easy to produce small sample sizes of graphite to the individual specifications of +25 end users, if the premise is whether or not ZEN can deliver the graphite to the end user's specifications. The question is - can it be done? And I think that has been confirmed that the end users are happy with the samples. In that part of the process where the graphite is purified in a laboratory, I suppose nobody worries to much about the cost of production. The important issue has been to prove to the end users that Albany graphite can compete with synthetic graphite, thus creating a real buying interest from the end users to start negotiating a sales price. I think the pricing negotiations with end users are completed - and that's the easy part.

Now comes the hard part of proving that ZEN is able to produce and deliver graphite to +25 sets of specifications.

Until now ZEN has proved that they can purify the graphite in a two step cost and environmentally friendly way to > 99% without the use of aggressive acids or thermal treatment, and that was the biggest issue, so they clearly have a cost advantage allready.

But I suppose that so far the process hasn't been centered around separating the purified graphite into batches that match the individual specifications that the end users require. This is the stage that I think ZEN is at now.

In this process it's been a bonus that the brilliant engineers at SGS have been able to simplify the process to a one step process cost wise, but naturally this optimization work has taken some time. It might be this process they are considering patenting.

Back to the separation process. I think this work is progressing well (if you can do it in a lab, I suppose you'll be able to scale up), but it might be a very complex piece of engineering work, and thus time consuming to get it right. At least this is what I suppose, and this IMO is the reason for the delay.

As I mentioned in a previous post, if I was AE I would make damn sure that I was able to deliver the graphite to the individuel specifications before releasing the PEA. When the production process is optimized, I would not only be confident that I could deliver, but I would also have a pretty clear picture of what my production costs would be, so I would be in a much better position to calculate my profit.

For reference I have thought about how synthetic graphite is produced to individual end users specifications. I haven't got a clue, but one thing is for certain. The production process (e.g. thermal) is materially different than purifying Albany graphite. I wonder if the producers use a standard thermal treatment and end up with an average synthetic graphite which is then separated into different specifications, or if the thermal production process itself is tweaked in a way, that they produce batches of graphite with specific properties. If it is the first production process, I suppose it might be pretty standard work to separate the graphite to suit the individual end users, but if it's the second production process that is used, then the separation would be a completely new issue to tackle at a large scale - and that might take some time to figure out.

The silver lining to all this is that it looks like AE is working on cutting out all the middle men, not just being a potential miner of graphite, but being a producer of a wide variaty of graphite with properties to suit individual end user's needs. This IMO would probably be a much more profitable operation than just to mine and sell the stuff to someone who would the add value by upgrading the graphite.

Right now AE has asked us for a bit more patience, while SGS figures out just how cost effecitve the production process can be, because it's a very important piece of work to complete before releasing the PEA, or before entering into negotiations for a possible buy out.

Just my opinion for what it's worth.

GLTA ZEN longs!

PS: Iv'e worked in an office for +30 years and know nothing about ingeneering work, so I'm just speculating based on my common sence.