Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Massive potential here with more than 2Bln tonnes of graphite and 21 year permit. High grade / high recovery rates puts this at the high end of sales prices. A very competitive product for sure.
Placing over bought, brokers now sending out re-rating to 27p. MMs letting huge buys through, probably at the expense of pi’s who were confused by the price move down. Clearly they have buyers (placing over bought!) and they just needed some supply, so they shook the tree.
Gave me an opportunity to buy at a massive discount, so all good to me.
GLA
https://www.tbsnews.net/worldbiz/china/china-ev-battery-makers-grapple-graphite-squeeze-344308
Spending billions, and pi’s wonder how we will raise $50m! Off take agreements will come.
https://www.cnbc.com/2021/10/19/automakers-are-spending-billions-to-produce-battery-cells-for-evs-in-the-us.html
Pentagon adds graphite to stockpile list
Points to importance of developing Graphite Creek in Alaska
And to note: graphite one (graphite creek project) are talking 100m tonnes; we have 2-3 billion tonnes.
They are looking at 95% TGC we have 97-98%TGC.
We have more, higher quality product in the ground than this key US project… wake up everyone lol.
Blencowe are sitting on something very special.
https://www.miningnewsnorth.com/story/2021/10/08/news/pentagon-adds-graphite-to-stockpile-list/7017.html
Nice to see Brandon capital hill as a major shareholder. Even their CEO holds.
Given their expertise is in equity/debt raising for public companies they must see the potential for existing shareholders. They also specialise in Offtake linked financing so this is well up their street.
https://www.brandonhillcapital.com/wp-content/uploads/2021/03/BH-March-2021.pdf
GLA
Great presentation by Mike.
Huge opportunity
https://m.youtube.com/watch?v=qSqE4PKxITg&feature=emb_logo
The fact that they will debt fund the majority of the project is a big plus. They have moved their position from all equity, to 80% equity to 35% equity as the PEA has been released. So there must be some confidence in the conversations that are having and debt is seen as a feasible source of capital.
Big thumbs up to me.
This will fly once people wake up.
Even Mike has said that the share price would do some crazy things over night if the people they are currently talking too became strategic partners/ investors
46:30…….
https://m.youtube.com/watch?v=GVZ_o8oANjw
There is no way that the SP currently reflex the potential here in my view.
GLA
Earnings estimates are simply amazing $40m pa. yes the MCap is ridiculous now the PEA has been completed. Given a 4year payback on capital I think they would have many options to consider.
All very exciting and I’m sure more news will flow soon now the potential is known. Strategic investors / EV manufactures will have to be quick.
This won’t stay like this for very long.
Nice interview with Benchmark Mineral Intelligence. Confirms the quality of the material Blencowe hold.
https://m.youtube.com/watch?v=Z7EWy52sUbk
I think the PEA will surprise to the upside and any news on off take / strategic partners could be a game changer for the market value.
They are some way from needing significant funding for the plant and they will generate a lot of interest in the mean time. Many ways this can play out but one thing is now certain, they have high quality material and that’s a big deal to an industry where demand is certain to outstrip supply in a few years time.
I think the most important part of the RNS was missed.
“ for us to progress strategic discussions already initiated with a range of parties such as potential offtake agreements and strategic partnerships.”
Already initiated
Big things brewing!
Starting to get its legs on.
Would say 12p to start....21p Will not be far behind!
Once producing, £1 isn’t out of the question, Especially when you look at its peers MCaps and then consider the high quality and amount of the graphite Bres holds. It’s a monster.
GLA
And the pressure hasn’t even got going.
If some MMs have gone short to meet their obligations to all these huge buys over the past two months then they will be bricking it!
From my observations of the last year there hasn’t been any major selling that could cover all the big buys. Really sticky stock and I can’t see that there is any free float.
It will only take a little momentum and if they are short or have no free float; it will rocket.
An alternative thought....they could simply farm out this first section once indicated and measured Jorc figures are confirmed. Take the royalties from this and pump it into building plant on the next section. Remember that the 20Mt is less than 0.5% of the total area. Alternatively, prove up another section and Farm out again. let others do the heavy lifting.
Funding does not have to always come from dilution and this is a hot commodity. People invest a whole lot more capex into Exploration oil wells and risk coming up with dusters.
The capex is peanuts to big investment groups and the rewards are almost guaranteed. The Development opportunities are endless given the size of this 21year mining permit.
3bl tonnes of graphite...Love it
GLA
Yep, another great update.
Still waiting patiently.
MMs still holding it back to allow people in.
Some big buys went through last week. Can’t see there being much free float. They could even be short, so don’t want a rally.
Time will tell
GLA
I don’t think it’s that difficult to find off take partners who are looking for high grade graphite. Some deals to be made, it at least explored.
Other option, realise the potential Of the land and sell it to an EV / battery producer. The costs to build the plant is a tiny drop in the ocean for them. And they would get to secure their own Raw materials.
I wonder how many car manufactures are wishing they built their own computer chips right now! Graphite batteries will be in short supply soon I’m sure and the cost of high grade raw material is only going to go up.
Know any EV makers with a bit of cash!!!!!