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Ann: Namangale Concentrate Produces Graphite of 99.99% TGC, page-109

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Just Magic

495 Posts.

20/11/16

12:41

Post #: 20745518
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Originally posted by michaelbond89 ↑

I suggest you double check PLS NPV, it's currently $1.165 billion as of 20/9/16. PLS current market cap is $700. PLS is also Lithium which is different to the natural graphite business.

PLS is also a market leader very much like MNS, being first to market has a huge competitive advantage as many people see the possibility of a dividend return or growth from earning there. That's why several companies who are first to market have a much larger market cap than other explorers.

A better comparison would be MNS, simply because it's graphite and further developed. MNS current market cap is sitting at $300 million and they have a NPV of $1.69 billion (as of 20/3/16). So just because a resource has an NPV of such a large amount does not mean it will hit it. It provides comfort to investors but is rarely hit. I wouldn't get too caught up in the NPV of a project. Imagine a project with an NPV of $100 billion but the market has no demand for the product because every other competitor beat it to production, how much is the project worth? in reality without investment, nothing.

In getting finance for a potential mine the main component will be the IRR (initial rate of return). This will show the finance group/company (EAS potentially) how quickly they can get back the money they invested. Nobody wants to invest $150 million and knot's going to take 20 years to get back. I think Volts IRR will be very good and will seem extremely favourable based on its location and flake size. Obviously there is extensive testing that will still have to be conducted on the graphite (yes they hit 99.99% but that was more than likely in one case, to produce that on mass and in Tanzania will be the challenge).

Volt just needs to keep moving fast and thats what the management team seem to be doing, like I've previously mentioned it is a race to mine.

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Hi Michael

My post should of said when PLS was at a similar stage to Vrc their NPV was around $400 million and their cap was around $700 million. These were ball park figures. Refer to pls Ann 10/3/16.

My point is that I believe Vrc is incredibly cheap when their NPV should be north of $1 billion.

You are right management is moving very fast and IMHO the best is yet to come. I'm betting they have others covered on both the marketing and finance front.

Time will tell.

GLTA

JM

VRC Price at posting: 7.1¢ Sentiment: Buy Disclosure: Held
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Ann: Namangale Concentrate Produces Graphite of 99.99% TGC, page-109

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