CDT - $2.6m cash, $6m EV for undervalued graphite exposure?

Hi all,

Lately I have been trying to wrap my head around why CDT hasn't been getting any market recognition despite so much untapped potential. In the end, I came to the conclusion that a big part of it is down to the company not having a strong online presence and not successfully articulating a clear and concise value proposition. So to assist in the CDT story, I have put together a high-level 1 page summary on the company as a quick reference guide/refresher on the value proposition that I think CDT holds.

One of the more interesting things I found when I did my analysis was that the Kambale project comes in as one of most undervalued graphite resources in the world on an Enterprise Value (EV)/Resource basis. Kambale came in at A$6/t when the average of the other resources were A$26/t. You can argue this is an oversimplified metric as some projects may be more advanced than others or that some companies are not pure play graphite companies (e.g. CDT also WA gold assets and the Ghana gold royalty) but the metric is still very much used and accepted when benchmarking projects and conducting comparable market valuations, especially for resource juniors.

Note that my analysis and comparison is not exhaustive and I have left out some obvious big names like Syrah, Talga, Ecograf and Nouveau Monde as they are really on another level so it wouldn't be a fair comparison. Lastly, I want to make clear I am not advocating that Kambale should be valued at the same higher multiples as some of the more advanced projects in this analysis as Kambale is clearly not as advanced, however given its potential and the relative valuations surely it should be trading at something at least closer to the median?

Anyways, I thought I would share as I did find the results quite interesting.

For those that are on Twitter please feel free to share on there for our fintwit friends as we wouldn't want to leave them out

Have a great weekend and as always DYOR!