Largest Tanzania Resource, page-6

MOZ is still a highly speculative stock.

But to date it has ticked all the boxes on the way to becoming a highly successful Graphite miner.

Recent announcements have been spectacular including the largest Tanzanian Graphite resource to date, and very high grade Jumbo and Super Jumbo flakes!

Stephen Hunt's interview was very good and very enlightening. They are aiming to Produce and Sell 200,000 tonnes of high grade, Jumbo Flake Graphite per year! Current prices would suggest an average price of US$1200 to US$1600 per tonne, so Graphite sales income could be in the order of US$240m to US$320m+ a year!! (approximately)

Hunt places MOZ about 18 months behind MNS. But with his drive MOZ may be able to make up a lot of that ground over the next 12 months.

MOZ will need:
Off take partners, and I believe Hunt will find them! (searching now)
Much more capital through some form of capital raising. (?)
Further testing of the graphite, more drilling and flotation testing. (February 2016)
To design the mine. (March 2016)
To prove indicated and measured Graphite resources. (March 2016)
To begin a pre-feasibility study (March 2016)
To determine the "all in sustaining costs of the mining", AISC, to determine profits (late 2016?)
(dates are from MOZ and are approximate)

Whilst I wouldn't go top heavy in the purchase of MOZ shares at this stage, my belief that MOZ is very cheap at around 4c a share. And any shares bought for under 4c are a bargain! IMHO.

In the long term MOZ has the potential to reach the sp of MNS of 40c. If Hunt's prediction of 200,000 tonnes or Graphite ore is mined per year, if the ore is shipped to suppliers at the current projected prices, and if a yearly Graphite sales income of over US$200m is achieved, then MOZ has the potential to achieve a share price in the $1 to $3+ range! This sp depends on the earnings per share, the p/e ratio and the number of shares on issue at the time. (capital raising may increase the number of share on issue)​

Possible sp scenarios in 12 months to 2 years time?
(earnings AU$60m, p/e of 10 = earnings/share of 10c  x  10  =  a sp of $1!)
(earnings AU$180m,  p/e 10  =  earnings/share of 30c  x  10  =  a sp of $3!)
(the p/e ratio could be higher or lower, some analysts tip a p/e of 15 for the Graphite sector!)​

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MOZ has a very long way to go, but everything has gone well to date. The future is very exciting and the sp has the potential of achieving 10x, 20x, or even 75x today's price! But expect to hold for perhaps 6 months, 12 months or 24 months+, depending on the sale price that you want to achieve.

Go MOZ!


(Please DYOR, reach your own conclusions, and determine your own exposure and risk to MOZ!)