Poppycock! Poppycock! Poppycock!
RNU has a high potential to be a low-cost producer of graphite concentrates and, purified spherical graphite (PSG) outside of China. This is primarily due to the quality of the flat-lying Siviour Graphite Deposit, which offers low operating costs and capital efficiency. Most others as in tricky terrain and are sub vertical.
The fundamentals are "better" for Australian resources over many other ex-China nations. Generally, Australia has a more stable and mature mining sector with a "history" of strong governance and investment, while other nations might offer significant potential but face challenges in terms of political stability, infrastructure, and corruption. Why? Because Australia maintains separation of powers between the state, judiciary and military. This is crucial for preventing tyranny by ensuring that power is not concentrated in one entity. It's as simple as that. Once you lose it, it is very difficult to build the trust again in the short to medium term.
Furthermore, the fundamentals underlying Australia's vast raw materials sector have changed in recent weeks with the agenda that the Albanese government took to the election. Driven by factors like the global transition to net zero and increased geopolitical competition, the Critical Minerals Strategic Reserve and Production Tax Credit scheme aims to put Australia in the most favourable investment position going forward.
While strong fundamentals remain, these new forces are altering the value of natural resources, disrupting trade patterns, and creating new markets, requiring increased adaptability and innovation. All of which are favourable to Australia's capabilities.
Finally, the graphite sector's fundamentals in general remain strong.
All IMO, DYOR, GLTA(patient)H
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