Hiya MMO. re sentiment
I, like quite a few on this forum have been invested in RNU for a number of years. My first RNU parcel was around the 2 or so cent era. My reasoning for graphite at the time was its relationship to Lithium in batteries and in particular this new buzzword/s, ESG. Effectively a new mass adoption purpose for Graphite that was low cost to manufacture and low in emissions.
Since those early days, we've had many potential catalysts that should have propelled natural graphite into mainstream investment thinking. This includes, China's control of that market (90%) and the west's over reliance, ESG and costs to manufacture, amount of graphite needed per battery (huge), second largest reserve (I think RNU is 5th now) in the world, MOUs with battery manufacturers (POSCO primarily), control of Chinese exports, Ausgov/EFA et al support.
My sentiment first started being questioned a couple years ago when on this forum, I asked; if there are no other producers of natural graphite (can't remember when SYR came on line), where are battery manufacturers getting the graphite from. The answer I found was synthetic. Manufacturers preferred it due to consistency of quality, higher current capability and for other technical reasons. Recently I discovered an article that mentioned that synthetic graphite can be produced according to the spec of the battery required, low capacity, mid and high.
Everything you wrote in your post above was how we (quite a few on this forum are still here..haven't seen bombers for a while) thought about RNU and graphite. We became the graphite bulls, the smart ones that jumped in early and rode the amazing euphoria into mid 30c share price. Some of us held fast, fell in love with the stock and graphite, thought she was the best, rode her all the way back to 20c where we started wondering; What's going on? It should be graphite's turn, the world loves ESG, it's cheaper, less harmful to the environment, the west wants to de risk from China etc etc bla bla.
And when we hit 8c again, I think we, maybe it was just me, really wondered if we got this right and started understanding opportunity costs and questioning what we believe, and also questioning the wests resolve and ability to truly compete with cheap s* (stuff) from the east.
RNU has so many boxes ticked, but graphite, the reality is that natural graphite is still in question and until we see binding agreements, it's pretty difficult to forget the years of ups and downs. But for me anyway, those agreements are what is needed for RNU to move. Even if we were in production, would be in a similar boat as SYR? Where are the battery manufacturers especially considering China's latest policy of export approvals?
Anyway, it's a bit of a story, but it's my story with graphite. Please consider that I am satisfied with RNU and the team, it's just graphite at this point in time which will evolve at who knows what point in time. In the mean time, opportunity costs and loss minimization.
And as for Aus gov support, we've seen our governments get things wrong in the past but yes, I would love to see an Australian made product kicking in on the global market unlike the technologies we've given away eg solar cells etc.
C
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