'Broadening your moat' doesn't usually translate to being a team player. I believe that one of the reason's why RNU has so-far managed 4 x MOU's with the existing Anode players (100% NE Asia) is that they understand their role in providing a secure product for the supply-chain. Therefore, RNU is a non-threatening and desirable partner in a market that will be dominated by NE Asia come 2030. See diagrams below.
Also, having the best synthetic graphite is not what it is all about either. Not to mention the increasing energy costs associated with producing synthetic graphite which is another topic for discussion.
My understanding is that NVX have produced synthetic graphite under laboratory conditions. Whether they can translate that into a large-scale commercial enterprise is another thing. Also, can they bring their complete business together into one cohesive package in another thing and a greater risk. Good luck to them and to any other graphite wannabe if they can make building a broader ‘
puffed-up’ business model work. However, I can’t emphasise enough that from a shareholder’s perspective, when it come to Risk v Reward, RNU is as riskless as it gets: See my recent post about why I think so:
Post #:56341265.
The fact that many players need to extend their business proposition with hypothetical technologies is most likely because they realised early on that by just supplying the raw materials (that is if they can get their hands on it) will ultimately not make money for their hungry shareholders. The risk is that they are up against many years of polished well-advanced semi-conductor manufacturers who will not let go of their market share easily and still may have something (disruptive) to say about it. To have a competent techno operation is many years away from proof of concept and market acceptability. Not only is it riskier but highly likely that teething problems and shocks (new ideas) will invariably surface in the process.
In a recent
Australian Financial Review article by Elio D’Amato, he clearly stated that ‘there aren’t many homegrown options that are investment grade…’. He then proceeded to mention three companies which included Renascor as his number one highlighted pick. I think this kind of independent kudos, especially because it is the AFR, is as good as it gets.
Graphite demand follows lithium demand. However, graphite is yet to grab investor’s attention as the lithium shortage which has been understood but has not yet translated over to the graphite issue. However, that tsunami is coming!
The Siviour Graphite Project’s greatest advantage is that it is a simple operation with minimal ambiguity. It will most likely be the lowest cost mine concentrate operation in the world. This then becomes an economical feedstock into the higher value PSG side of the operation using RNU’s own calibrated to resource eco-friendly purification technique. As boring as that may sound, risk isn't what RNU is offering its shareholders but a faithful riskless investment proposition. An unique investment opportunity that should be on everybody's radar.
Once in operation and making money, RNU may then decide to build and diversify products. This is smart economics in anybody's book and why RNU is still undervalued.
KISS, DYOR, All IMO, GLTA(Patient)H
