Low market valuation relative to its graphite peers
Based on its inferred 60Mt contained graphite resource, SGA currently trades with an enterprise value/tonne of contained graphite resource of $0.74/tonne. This compares with graphite major Syrah Resources which trades at $5.19/tonne and graphite developer Renascor which trades at $48.37/tonne. We expect this gap to close as SGA’s market cap rises with upgrades to the classification of its resource and progresses to mine development studies. (Note: the EV/contained graphite (A$/tonne) calculations are based on closing prices as at 21 July 2022).
SGA Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
