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The investor call was very interesting. Matt Bull is very impressive - knowledgeable, concise and most importantly, has his money where his mouth is.
Concerning for me is the quality of those posing the questions. Money Sponge who is held up as a serious investor confessing to "having had a big night" the previous evening and the other main interviewer other than Sacha had one question which was by the sounds of things posed from his garden. If he can't be bothered to ask more than one question when there are so many important aspects to probe and cannot be bothered going inside to ask that question then how important is he as a shareholder? Concerning if they're the major shareholders. If either could ask a question without saying "you know" three times before finishing the question would also add slightly more credibility.
Thank goodness Matt Bull and his family are invested.
Thanks Dambaba, some really good points. I'm now sitting on a good profit having averaged down over the years. I have been tempted to take some profit now the price has reached 4p but what gives me huge confidence and why I won't be selling any shares yet is Matt Bull and the fundamentals of the project.
Matt Bull is a director with 800k of his own money invested in this company. He has experience of taking companies from explorer to producer and has done this previously. The last company he did this for saw a 180 times increase in value.
The fundamentals of this project are also unbelievable - just look at the IRR and let me know if there is another share with similar economics. It's also worth noting that larger flake and higher purity graphite prices have held up despite the recent downturn and that is one of the Mahenge project's key USP's. Also, the capex is very low so even if financing markets have tightened recently, the low capex and IRR make this project more likely than most to get funded and also avoid dilution. GLA
The article below is quite interesting - it looks as though while graphite prices have reduced slightly, large flake graphite prices have remained firm due to lack of supply. Could this explain the updated mine plan? Hopefully even Jenny Lee can flog large flake graphite.
https://www.indmin.com/Article/3932830/Chinas-fine-flake-graphite-price-falls-further-large-sizes-supported-by-supply-scarcity.html
The
Agreed. Yesterday I was listening to the investor interview from October when the MOU off takes were in place. Matt Bull said work was underway to convert those to binding off takes and the parties involved were doing down stream work to ensure our product was suitable for their needs. At the time he was expecting there would be news in the coming months once that work was complete. I'm fairly sure that work must be complete now.
One hold up may be the graphite price agreed. If you have a look at how pricing hit Syrah Resources in Q4 last year, I wonder if it's having an impact with us in terms of converting the MOU to binding agreements because of the prices agreed. Syrah also reduced production capacity by 75%.
I know there is going to be a significant increase in graphite demand in future as societies go green but perhaps the short term economics aren't helping our cause.
I will happily add on the dips. There will always be some investors happy to take a quick win but nobody can time the market so I'd rather hold and add through the volatility to get the full benefit of the imminent news flow.
Couldn't agree more. It's hard not to look at the short term price changes especially in volatile stocks like mining companies but I'm happy to hold for years to come so just keep focusing on the long game and think about what the shares will be worth once mining license secured, financing in place, binding off takes and then production. The fundamentals here are superb and with the low capex this project has as much chance to get to production than any in the current climate
Good video - thanks for sharing. The numbers are brilliant. Only thing that concerns me short term is that he said financing depends on nickel price and equity markets and both have since taken a significant hit.
When we come out of this current situation and EV demand continues to surge then hopefully we can see attractive financing secured but I doubt it can be done in the current climate. Happy to hold long term though. GLA