Hi Centro, you're welcome... I thought the fuller picture would calm your understandable (albeit unwarranted) angst. It made me feel better too. Whilst there may not have been a regulatory obligation to have disclosed the price in context of the previous announcement, it would have been more caring and sharing of the company to have done so. I guess we got to get tougher and learn to not react so emotionally and be thinking "what about me" less, us retail shmuck. Lol
At the end of the day, 9c represents only about a 10% discount to the SP on the day (I've not checked) and the shares can't be sold anytime soon, Centro. It brought in extra bucks too to our coffers. So, all good and all forgiven!
Agree, we do seem to have a team that is good at getting stuff executed. As for why I think the SP is not taking account to all those achievements in the past few months.... I think it has a lot to do with the function of the market, an overhang of subdued market and sector sentiment (that's on the turn now) and SP manipulation/suppression... and definitely not what you are expressing as concerns..... ...... ......
1. The fact the BEM's mineral grade is not at the higher end compared with other companies? Firstly.... in graphite production, grade is not foremost in valuing a resource. Feed grade merely affects OPEX and CAPEX (to a degree). It is the resultant concentrate or product grade that is the critical factor. What determines that is the quality of the feedstock. BEM's extensive metallurgic testing, purification testing and expandable graphite testing differentiates our graphite from the rest. Tap density, crystallinity, lack of contaniments, are just but a few criteria that are the point of difference that qualifies our product in all possible high-end applications.
It could possibly be that the market simply doesn't understand graphite and what constitutes quality. "Grade is King" is a cliche bandied around which has little to no context when it comes to graphite. Sure, it affects costs but costs only. Graphite production has to be viewed in the big picture context - sales channels, product applications, value and pricing, management and international relations, etc, etc
Secondly.... I am confident that our overall TGC figure is about to shot in the arm with assay results due soon from our recent drilling campaign at our Razafy domain. Just a small percentage increase in overall average will have a substantial improvement to our current DFS NPV figure. The grades out of Razafy in the past have been very high grade, so again, I'm expecting great results and a good reception from the market on that.2. The perceived CR for the capital requirement for the plant to be built?
I can't see how there is a perceived requirement for a CR anytime soon for either plant to be built (unless the market is again oblivious to our current situation, which is a possibility I suppose).
The proposed graphite plant in Madagascar won't be ready for financing perusal until our DFS is further progressed towards a BFS with full costings, plant engineering designs, etc done and presented. Don't take my opinion as fact, of course, but I just don't see that BEM is at that stage yet.
The proposed JV Expandable Plant in India is already fully funded. The company has stated that fact several times. So, I wouldn't expect the market to be thinking BEM is going to be tapping it for funds for that plant. However, there is no underestimating how irrational the market can be at times.My overall feeling is that those who are smart and have done their homework on BEM are either already locked and loaded, still accumulating or waiting in the wings to swoop on this stock as soon as the next major news drops. I don't see the massive swings in trading to occur this time around, though. The price action in other stocks and graphite stocks suggests that since the hype period and tax-loss selling, there has been more civilised and steady price accretion minus the volatility we experienced earlier in the year. I could be wrong, though... but one thing I am sure about (fwiw) is that BEM is undervalued and a quality graphite stock.
Hope that helps, Centro. One thing I've come to learn the hard way, is that we have to interpret our financial decisions on how we think the market is going to react and its possible perception of things... but also to be patient at times like this when a has undergone an extended time of consolidation. But, at the current SP and with what we know is in the pipeline of news, I would not be too worried about what we think the market is thinking. With only 220 million SOI and at 10.5c, we are in a good position as holders.
Cheers - Shell
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