Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Exactly Basscadet - in the results the company states it expects profitability to be reached from the 12,000tpa operation. Obviously this should improve further at a 30,000tpa, 48,000tpa, 64,000tpa, 84,000tpa operation up to 2024 with profits reinvested to grow the company organically but also opens up significant debt funding.
This growth will be complemented by both Patalanga reaching 4,800tpa and the 15,000tpa downstream project coming online H2 2022.
The foundations for profit are being laid and the macro picture continues to strengthen as demand soars - news yesterday that Tesla is in desperate need of significant quantities of graphite that it's asking the US administration to reduce tariffs on Chinese Graphite imports so they can secure what they need - great time to be an expanding source of graphite outside of China that is not subject to trade war tariffs imo.
With growing revenue and margins though profits should outweigh losses at some point. If TGR just had the Madagascan operation I would think that would happen quite soon. However, Mozambique is going drink cash for the first couple of years.
still losses which is expected given the heavy investment but I suspect this will continue to spook investors as losses continue to increase and also the issue raised on the family ownership…
Thanks for the informative posts guys
Thanks Glengarth I suggest anyone with an interest in TGR reads the thread you posted
https://twitter.com/MylesMcNulty/status/1466366583828320258?s=20
YES, HUGE POTENTIAL
substitute/repla for copper
Oh and an updated website is hopefully in the works to better illustrate the future potential and quality here.
See a rather good thread, link below, on TGR that serves as nice explainer of where things could go in the short-medium term:
https://twitter.com/MylesMcNulty/status/1466366583828320258?s=20
Crocqman, fully agree with your comments. But as someone who has been speaking with Shishir from early days I'm very comfortable to state as a long term holder that I truly think that TGR can become a mid cap, yes it will take a few years but this company has the team and strategy to deliver that. I can't say that for many other small cap companies I hold.
Agree with many of the comments on this thread, but will still remain cautious as to the 'mid-cap in the making' comment.
Have seen this posted on virtually all small cap stocks, and it is by no means a certainty.
2022 looks likely to see a continuation of the growth seen to date, and hopefully some of the announced applications coming to a bottom-line enhancing fruition.
Certainly an exciting future, but there will inevitably be bumps along the way (as seen by current SP).
Still a long term hold for me, and will be adding when funds available in the coming weeks
gla
Agree SI and Basscadet - these results confirm the beginning of the hockey stick curve is nearly upon us in terms of financial performance and the road to becoming a mid-cap.
Low costs, which the company sounds like they will be able to reduce even further with scale and hydropower supply for operations, great operating margins which also may improve with scale and reduced costs, and a runway ahead for massive production and sales growth out of Madagascar at a time when demand for product is only increasing and TGR is one of the only operators out there right now actually in production, sorting out teething issues and building experience and expertise in its personnel so that they know how to operate future expanded operations.
Great to see the news about Patalanga - I had also overlooked this was being expanded to 4,800tpa by in H2 2022 - I thought development had been paused. For total specialty and downstream graphite capacity to be at 19,800tpa by the end of 2022 is something the market is not alive to yet imo- that alone will probably be able to double the revenue received from the primary flake side to produce juicy revenue and profits to reinvest to further expand the company's operations.
Graphite is a difficult industry but the hires made over the last year and the modular build-out and market development activities looks to be progressing very well under the MTDP.
Looking forward news of:
commercial-level production out of Vatomina,
TSG consolidation,
further spherical graphite testing news,
an update on exploration (looks like solid progress is being made from the results announced today but it is a huge programme),
possible Al-Gr composite news,
hydropower in Madagascar news,
Mozambique transaction news,
expandable/fire control graphite news e.g. more Indian Railway contracts (quiet on this front so far)
---- and all of that is before the next string of news starts on commissioning of the next 18,000tpa module in Q2 2022, specialty downstream project of 15,000tpa in H2 2022, Patalanga upgrade to 4,800tpa H2 2022 as well as the publication of plans for Mozambique assets and potential anode material facility in US or EU (or India if Tesla decides to move in with a gigiafactory I guess ?) and eventual JORC upgrade for Madagascar. Probably missed out more but there's so much this company is doing and it's not hanging around to secure itself as one of the world's best one stop shop for graphite and a much higher future valuation imo.
Good luck all
Bassadet, agree with you in as much as I see the graphene commercialisation longer term, which is also what the company always stated, and really see exponential revenue growth on the mining and downstream speciality graphite for fire ******ants, spherical re EV anodes etc. They are very smart in creating the markets and demand for their products to produce and sell where demand lies, very smart team indeed. Other graphite plays are years behind TGR and the 2022 year will be game changing again for us.
Indeed very good results. Solid financials. If they do 4000 T in the next 6 months they will be demonstrating nice continuous growth. I remain very sceptical that there will be "commercialisation of at least one of the many bulk graphene applications we are working on" in that time but would be delighted to be proven wrong. Cash burn to cash runway looks fine.
Delivering on all fronts mining, downstream, speciality, graphene. You can see the massive revenue growth in the speciality part of the business which we are now consolidating into TGR. Mid cap in the making, massive buying opportunity for mid term investors if you can wait 2-3 years. Note also: We expect commercialisation of at least one of the many bulk graphene applications we are working on and remain prepared to install additional capacities as markets are developed.