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4.00p/5.00p - market doesn't seem to know what to make of the stock this morning.
I wonder which route GROC will take to fund operations until sales income meet production costs ?
Opinions appreciated
Thank you
I was quoting other small graphite mines with those figures....
Https://physics.mit.edu/news/mit-physicists-turn-pencil-lead-into-gold/
Sorry 22 LOM with a 4 yr pay back and massive expansion area 50% at pres and a lot more available-it could easily be scaled up but no need. The initial capex is going to be subsidised and already has a 25% contingency built in. But power needs to be addressed.
I disagree AIM ,this and most Graphite mines are smaller operations and the figures are looking fine-Graphite price rising will help but as a 32 yr LOM and set to expand this has the potential of doing very well
You cannot suggest otherwise. To be competitive you need sub $100m capex, more than $400m pre tax NPV at 10%! and an IRR over 50%
I’m a little deflated and disappointed that a very positive Pea did not even move the share price one jot. I reduced my holding in absolute frustration that we wait for milestones and objectives and yet nothing seems to happen. I know Groc is a very long way from possible production but good news should be rewarded. I’m moving on to other stocks now and my remaining shares can go in the sock drawer.
GLA
So yoi invest in Graphite because you know there's going to be a shortage and then they find another potential use for it https://www.mining.com/new-graphite-based-material-can-be-everything-all-at-once/
I have opened a position here today after a bit of reading and past RNS
Graphite is/ will be in big demand going forward and this is very early stage but seemingly with decent support and potentially some decent JV opportunities this could be my new GGP. I have a large overweight position in TGR and when I top slice I will add to my position.
Interesting early opportunity
Or work on an assumed 70/30 debt to equity ratio
In putting a valuation on this stock consider the two boundary conditions
1. all capital raised through placing
2. all capital raised through debt
tells you all you need to know.
fill your boots
Just at PEA stage with a high cash burn rate.
Current market cap is reasonable with the level progress its made and current market conditions.
For the moment, it's a very lacklustre response from PIs to what is a major milestone of an RNS.
If PIs are prepared to leave GROC at its current valuation (4.25p as of now), suspect industry players may be tempted to come in.
4.25p per GROC share = a GROC market cap of about £5m (according to the rival site).
Off the cuff, would have thought a market cap of 3 or 4 times that figure would not be unreasonable. After all, GROC owns 100% of Amitsoq.
Plenty of scope for this to fly, SP virtually doubles even at a 95% discount to potential
Locks
yes looks looks
bearing in mind the material shortages coming lets hope they can get this rolling soon and commerial deals, be interested to see who is coming on on that?
Current Mcap of only £6.2m. All being well it should be 10-20x that when we get into production. IMO
And now we see who will be contributing to the capex US/EU/UK ? The payback will be far quicker after some fast track incentives !
A very positive Pea, onwards and upwards. Should tease out the big boys with lots of Capex, quite a low figure considering.
GLA
Highlights
· Pre-Tax Net Present Value at 8% discount rate (NPV8) of US$235M with Internal Rate of Return (IRR) of 31.1%.
· After-tax NPV8 of US$179M with IRR of 26.7%.
· Life of mine (LOM) is 22 years with potential to extend through resource expansion.
· 4-year payback period on capital from start of production.
· Average Net Revenue of US$89.8M per year throughout the 22-year LOM.
· Total gross revenue of US$2.1Bn over a 22-year LOM, with total undiscounted net pre-tax cash flow totalling US$794.7?M.
· Initial capital cost (Capex) of US$131M inclusive of 25% contingency.
· Average operating cost (Opex) of US$121 per tonne of milled ore.
· Average annual production of 77,000t of concentrate at a minimum 94% grade.
· Mine plan assumes mining from the Lower Graphite Layer (LGL) only, leaving considerable resources from the Upper Graphite Layer (UGL) available for future production expansion or extension to the LOM.
All looks very positive!!
China think this is a clever move to restrict now/push the price up and dump on the market when development is under way-But their weakness is ESG ,and the world will be made fully aware of the ramifications of Chinese produced REEs and Graphite when they start their rubbish !
The Sunday Times: Jose Fernandez, under-secretary for economic growth, energy and the environment in the US State Department, has warned that China’s move to curb exports of some critical minerals used in green technology shows that the West must accelerate its efforts to find its own sources (from Citywire's round-up of the morning papers).
The article is on page 1 of the Business section:
"... Jose Fernandez ... urged City mining companies and investors to back a new project to boost mineral supply, which Washington DC is keen to help finance ...
Fernandes is leading the 14-nation Minerals Security Partnership to raise public and private funding for the new supply of key minerals to meet the demand and cut dependence on China ...".
"Gallium and germanium have jumped 20% to 30% since the restrictions, and it’s likely graphite prices could increase by a similar amount, said Steve Man, an analyst at Bloomberg Intelligence"
The potential of GROC portfolio looks much better with the news from China and the decoupling currently taking place globally.
European car production will not want to be at the mercy of China, who will favour their own market.
Https://www.mining.com/web/battery-makers-hunt-for-graphite-ahead-of-china-controls/