I think you are on the money here, and the market still really hasn't reacted. What the announcement says is there is real resource and lots of it. The stuff is close to the surface and in the past they simply extracted it with front-end loaders.
The key appears to be the graphite price holding up well and the costs of shipping it to markets. Also, the future uses of graphite in heat-sinks and in the nuclear power industry (where graphite rods control the reaction) have barely scratched the surface.
This new SER board also has a couple of clever and experienced guys on it besides Muzzin - being resources stategists and qualified professionals according to the Annual Report. At last we are not reliant on flakes that simply speculate.
When they turn their minds to the Bass Strait permits it could be very interesting as the recent traders in BAS have not realised that SER has pretty significant percentages in many of the BAS operated permits. This potential for separate hydrocarbon riches is definitely not showing in the SER shareprice to date.
A quiet sleeper in fact?
SER Price at posting:
2.6¢ Sentiment: None Disclosure: Not Held
