SP failing- summary23 Nov 2021 21:05
I am currently holding a small value at around 90p, I hold this and #cmet where I hold large position. I am considering building a large position in TGR over coming months and have started more research. I got a great summary of mainly the positives on Twitter from keen supporter (probably on here) below.
“obviously frustrating given the fairly recent 158p highs but since then the company has only continued to develop at an impressive pace. capacity now at 12,000tpa from 3,000tpa at the start of the year. This is going to 30,000tpa in Q2 next year. Given flake graphite price movements and margins achieved by TGR this will set up for some serious revenue and gross profit for the primary business unit. This will further grow to 48,000tpa after another c.9 month period. Also H2 should see the completion of TGR’s 1st downstream project in India taking specialty graphite product production capacity to 16,200tpa. TSG transaction needs to complete for results to be consolidated under TGR. Downstream ops will provide the juiciest financials imo. Mozambique transaction at 103p needs to complete and the business plan for Montepuez and Balama Central needs to be incorporated into the next MTD plan for the expanded company to establish which markets they will serve and whether they can be used to supply TGR’s own downstream projects in India and any possible future specific anode-material facilities in US or EU. imo share price is a reflection of the anticipated enlarged share capital and issued number of shares going from about 86m to about 106m, some very impatient selling, and a lack of wider market confidence but also a lack of foresight and patience for what could be serious revs and profits on the books for TGR in 2023. I’m seeing 2022 as the most important year for the company’s journey as it will establish large scale production for the first time and initiate decent size downstream operations to then launch scale from and establish itself in the field and earn market share. I see the sp reflecting the current company but not taking into account the projects upcoming in 2022 which are under construction and funded and also not including any of the graphene potential. ofc there will be a need to fund the next leg of the journey into 2023 but successful execution and demonstration of sales + increased availability of debt to fund as profitability is reached shouldn’t make this a problem. competition-wise graphite is an increasingly crowded field with many proclaiming future success. However few have actually operated mines and processing facilities themselves unlike TGR which now has several years in Mad. and a management team with several generations worth of experience in graphite. The total addressable market size for graphite will be huge as is widely reported, and TGR is fortunate to have assets and processing abilities to allow it to directly serve expandable, industrial markets as well as Li-ion/EV anode markets. 1/2
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