No 1 investment

Was very pleased to have come across FGR recently..and have been accumulating recently after some extensive research.. These are my thoughts so far...with some numbers to boot...

1) largest land holding of 65,000 hectares..with mining licences granted and most importantly land access agreements made with the locals..
2) 3 head frames nearing completion so mining can start soon.
3) Sri Lankan vein graphite known globally for its quality..90-99% total graphite content..with no treatment needed..allowing direct shipping.
4) premium price achieved for SL graphite of $1,800 per tonne
5) C3 costs estimated at $650 per tonne leaving good margin..
6) it is important to understand that there are multiple historic workings and the nature of vein graphite means there are widths of veins ranging from 25cm to a company making 1.7m..therefore no Jorc resource will be possible or practical.
7) low capital cost of $150,000 per site based on Pandeniya
8) aiming for a run rate of 5,000 tonne per year..
As a stand alone business plan and mining company this makes for a good investment with experienced management let alone the astute guidance and availability of investors and financing that Warwick Grigor provides..

I see the graphene element as being a free carried option for the company..and a potentially very lucrative catalyst..

The facts so far on graphene production is that the company has made some very good progress recently..
The recent progress with testing has led to a recovery of 80% graphene within a 24 hour period..this is early days and I am sure the process will improve and the quality and consistency will have to be verified by end user customers (no need for off take agreements either as strategic sales can be made as and when required and keeps the power of supply and demand with the producer...vertical integration of the supply chain is more likely with imagination to maximise the margin. This agreement also opens up further commercialisation opportunities )
The process to produce graphene is low cost..simple and clean allowing scale up as has been demonstrated by the increase to a 50litre production..the 250 litre design for commercial production has already been designed and should produce 6 tonnes of graphene..
The added benefit of the treatment process which provides some added income is that 99.9% pure graphite concentrate can also be made which sells for $6,000 per tonne..
Everyone can do the maths and see the potential from a valuation point of view..
The question will be how quickly the large industrial manufacturers can commercialise graphene and mark my words..$bn's are being spent on this worldwide..
I am happy with the risk reward this stock offers and I believe we will see a rerate as the market wakes up to the potential upside it offers with a strong cash generative mining operation with a future option on graphene...
I also believe the stock will be held increasingly tightly and a strategic investor will be tapped for any capital requirements for growth..