The View from the Ground

A couple of days ago, Canaccord Genuity released a very interesting report. Many broker publications seem to result from the sum of whatever pops up on the screen, plus, perhaps, the odd phone call to the company, and maybe some titbits from a discussion over lunch.

Not so this time. The people from CG have got their feet well and truly out from under the desk, and actually made the long and muddy trek to East Africa, and South Australia, to give their clients a ground-level view of how things are going in the graphite business. The report, appropriately entitled "The View from the Ground", gives their frank, open and considered assessment of the strengths and weaknesses of eight companies currently vying for a piece of the graphite action. This is a professional piece of work, commanding respect.

Two brief quotes of particular interest:

"Significant preparation is required in understanding the geological resource and economics of any graphite project in order to support the commerciality of project development. A number of misleading shortcuts can be taken in this process, and we therefore remain cautious towards proposed timelines and some of the longer term economics within the peer group"

"Based on our observations, and form all aspects of geology, geometry, metallurgy, advancement, management team, and board, we continue to view Syrah Resources (SYR) as the sector leader, and Balama as a truly world-class deposit."

Whether you hold shares in SYR or not, or in any other companies active in the field, do try to get a copy and read the report. I can't supply a link, so it could require a phone call or two - but I promise it will be time very well spent.

Cheers,

Prime1