Well deserved heart ,Freehold. I know a little bit about SER. I am hoarding 1.5% (acquired my position a couple of years ago around 0.025) SER had 100% interest in Uley which is now demerged to be acquired by Canadian Mega Graphite which is supposed to list on TSX end of August. SER will hold 10% of Mega + 1.5% Royalties. Mega's MC on listing is still up in the air (we thought that it will have an MC of $210m,but a more realistic figure is around $70 - 100m. It is claimed that Mega has a licensed technology to upgrade Uley's large flake Graphite to battery grade & also contacts & customers (No solid proof as yet) Uley has a JORC resource of 6.6mt @ 8.6% Carbon (mainly large flake)...This is only in Main Road...The larger Uley was claimed to have historically 125mt @ 8% Carbon,which makes it one of the world largest. There is an old plant with all facilities connected (power,telephone & water)..Was said to have cost $12m (from memory)...The aim is to upgrade/refurbish it to produce up to 20Kt PA. It is worth having a look at Mega's web site.They claim that they will the 1st in production. As it stands SER has the following. 1) 10% of Mega...Not clear how much before Mega actually lists. 2) 1.5% Royalties (could be anything up to $6m PA,but a realistic sum is around $2m) 3) $1m in cash. 4) $3m to be paid by Mega in a couple of months. 5) Oil exploration interests offshore Gippsland Basin. 6) Minor (5%) PEL 182 Cooper Basin. 7) Copper/Gold exploration interests in Myall Creek & Cultana. .... If one has to consider a serious "longer term" investment in Graphite, it is important to consider an outfit that has the following qualities. 1) Large flake. 2) Near to surface. 3) Vertically integrated with the ability to upgrade Graphite,rather than just digging it up. Mega promises to deliver...But it is only a promise....we have to wait to see if it is up to the task.
