Acp is a hidden gem2 Sep 2019 10:44
Armadale Capital to advance graphite project ahead of schedule after confirming ‘highly encouraging’ grades (ACP)
https://www.valuethemarkets.com/2019/08/22/armadale-capital-to-advance-graphite-project-ahead-of-schedule-after-confirming-highly-encouraging-grades-acp/
We recently looked at whether investors are missing a significant opportunity at Armadale given these conservative figures on our sister site MiningMaven.com. As we highlighted, Australian miner Black Rock recently agreed to supply ‘premium’ graphite with a nominal grade of between 97.5-98.5pc for $1,490/t and ‘ultra’ graphite grading more than 99pc for $2,161/t.
Both of these prices come in at a significant premium to the $1,272/t used by Armadale in the scoping study for Mahenge Liandu, which neighbours and shares many similarities with Black Rock’s Mahenge asset. If Armadale can secure binding sales agreements at a much higher price than $1,272, then Mahenge Liandu’s fundamentals would be enhanced even further.
For example, if Armadale could agree on a graphite sale price of $2,161/t, then the project’s NPV would nearly double.