Ann: Research Report Available, page-6

GMP

Peer comparison with Syrah Resources
Triton’s Nicanda Hill project is adjacent to fellow ASX listed Syrah Resources’ (not covered) Balama Project. The following table summarises the two ASX listed companies with very similar resources, able to utilize the same infrastructure in the same operating environment.

One of the key differences between the two companies is market capitalisation. Syrah is currently valued 3.33x Triton on the ASX. This seems strange given TON’s larger resource at slightly better grade graphite and vanadium, better offtake and otherwise similar qualities as shown below.

Ton’s offtake is for 20 years (not three). Ton has also secured a floor price of US$1,000/t and signed offtake for 100ktpa rather than SYR’s 80ktpa. As outlined above, Triton is not restricted in selling its TMG product to other Chinese and global offtakers as well as YXGC. In addition, YXGC represents a well-established graphite player and is not just starting out in the sector. This distinguishes YXGC from other potential offtakers and also provides a significant vote of confidence in Triton’s TMG potential. In addition, the agreement provides TON with exclusivity in East Africa.

Syrah has a mining license and has completed a vanadium study, but given the similar geology and location of the two projects it’s seems likely that TON will achieve both. In our view, TON looks undervalued compared to its neighbour.