research help, page-2

Welcome to AXE lokunia,

Below is a great post from Bandalup which I particularly liked from 15 March which gave a good summary of AXE at the time. Of course much has happened since then, with further exceptional results from Campoona and the divestment to BHP of Roxby Downs. AXE will have $13.5m cash to ensure that Campoona and Sugarloaf become both company making graphite mines.



Bandalup2
Post #: 7876091
Price at time of posting: 31c
Start of thread:
IP: 91.89.xxx.xxx
Sentiment: Buy
Disclosure: Stock Held
Views: 1323




No brainer here IMO.

The confirmation of flake graphite with some pretty spectacular drill results (grade/widths) is a game changer here.

Just a recap of where we are at:
- substantial widths of high grade graphite (with flake) with grades between 10-15% (most deposits others are looking at around the world are 5% or less).
- 6km strike, graphite is highly conductive so shows up very well on the EM surveys, we can be reasonably confident in the strike extent of the deposit. If the true widths hold up across the 6km extent and to a depth of 50m could mean a resource of around 8mt.
- located in a safe mining state
- with just another 2500m of drilling AXE plan to get this to a JORC resource (albeit only inferred), thats a quick/cheap jump from outcropping prospect to JORC compliant resource.
- Market cap of just over $20m with $3m coming from BHP and another $1.7m in the bank
- Short term cap raising likely.

Lets compare to Syrah Resources (SYR)
- Has several good graphite projects with very good surface sampling, metallurgical results and potential for good tonnages.
- Balama has course grained flake graphite and "indications" of high grades of 20%, a strike extent of approx 4km, good location wrt infrastructure. No drilling. Good metallurgy.
- Nachingwea - medium grained flake graphite, 2km strike, probably very good strip ratios. No drilling.
- SYR market cap of $80m+

So there you have it AXE is valued at a quarter of SYR. Despite having drilling confirmation of grades/widths and despite being in a safe, developed country.

Yes, we do need further confirmation of whether the graphite here can indeed produce a high grade coarse flake graphite product. The presence of large flake graphite and the regions endowment (e.g. Uley's flake graphite)suggests this is a very good chance though.

Lets recall that SYR went from about 18c in late January to 86c just a few days ago in a constant rise as the market re-rated SYR having cottoned on to the booming graphite market.

AXE is on the way. Further drilling results to come, ongoing drilling. They will get to JORC well before SYR.