@detonate
Hilarious. I looked into these articles and here are a couple of fair disclosures...
Firstly, "The Pick Magazine" is a quarterly magazine published by Marketing Group, PPR (Professional Public Relations) and it's distributed nationally in the AFR.
In essence Volt (and other ASX companies, for example Metals of Africa) pay PPR to produce a nice generic article to market the company. IMO it's actually a good idea, but it's unfair to imply this is a research note with a buy recommendation endorsed by the AFR.
The author of the Volt article is simply a paid public relations media person... an important disclosure.
In respect to Magnis, the AFR article reports a "short" view by John Deniz of Paragon Funds Management. Paragon actually manage money and had a very good call on Galaxy last year so I'm more inclined to listen.
In their assessment of Magnis, Paragon states "
whose feasibility study is based on a 5 million tonnes per year processing plant - "that's a huge earth-moving proposition in East Africa" - for graphite production of 240,000 tonnes per annum coming online in a market they think will be oversupplied. "Despite global production falling by 40 per cent since 2012, and increasing demand, natural graphite prices have fallen by over 50 per cent," the fund managers point out. Nachu "remains unfunded, requiring capex of around $375 million and with its single off-take agreement still non-binding amid a very challenging environment"."
So Paragon are short Magnis based on the exact issues facing Volt.
