Is it time for a share consolidation?, page-6

I agree, consolidations rarely work out well for existing holders.

The price is where it is because the outcomes which shareholders have been led to expect will happen within certain timeframes, have not. That doesn't mean they will not, but confidence is lacking. Bring on an offtake and large investment by a quality battery manufacturer (e.g Panasonic, Freyr) or EV manufacturer (e.g. Tesla), a joint venture with a big partner to fund Bunyu to production (like RIO is doing with SVM), or some significant grant funding awarded to Volt and the share price will climb.

A recent example of a company which seemed dead in the water was MRQ trading at 0.002 with huge walls on the sell side. They announced a joint venture with Sinowin Lithium who will fund their project to production with a USD $50m drag along clause to acquire the remaining equity in MRQ. In AUD that's $75m for a company which was trading at $5m MC. It's already rerated substantially to 0.006 ~$10m MC in a few weeks, but doesn't look to be stopping there. A good deal can turn a company's fortunes pretty quickly.

Consolidations aren't the answer to creating value, delivering on the company's objectives and vision is. Additionally, being in an environment where the company's primary commodity demand is outpacing supply and resulting in higher prices always helps. Natural graphite prices are still on the floor.

We're not seeing any ASX graphite companies doing well at this point in time. Syrah, Australia's leader in graphite is currently trading at 34c and yet 2 years ago was at $2.60... so has fallen 7.6 times from its peak. And they are backed by Australian Super as a major shareholder.