The market is waiting for one thing right now and then a lot of other pieces can fall into place.
Proof that we can turn nickel (Ours and from Third Party Providers) into NCM811.
This is underway in the two pilot plant initiatives and I am eager to see the results of these, everything else is just noise. Before then it is too speculative for large partners to support BSX's business proposition. EcoPro, Vinfast, LG, Samsung, SK Innovations and whoever else we are talking to, are looking for a reliable provider of the NCM811 because there is a demand. Volume sales of electric vehicles is rising exponentially and NCM811 (and potentially 9,.5,.5 if the literature is correct) is the preferred bulk metal in EV cathodes because it perfect fits the requirements for an EV, high capacity & high safety.
Macro-economics, timeline delays and a large capital figure have put a significant dent in the share price and for good reason, but for me the risk is worth the reward.
$87m AUD MC for a company with a large nickel deposit in the ground, a functioning mine and concentrator (which if we were to build them now would required more capital than current MC), a slew of exploration targets (including Chim Van), good relationships with local government and key business partners, investments in feedstock providers, funding for the next phase of exploration/testing and an ambitious strategy in a growing market.
Big risk is the capital requirement but I expect these dominoes to begin to fall after we prove our production capability to the market.
I am cautiously accumulating at these low prices as I believe the company is oversold. Some of the management behaviour has made me scratch my head and a number of the slides in the presentations are ridiculous, but these are small hiccups in the objective company picture - the ambition is there, now we just need to de-risking events to be ticked off.
All my opinion, have a great weekend all.
BSX Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
