5 cents 12 months ago but in that time frame the company has progressed leaps and bounds. Its hard to draw comparisons with prices back then. Another stock I would draw attention too is Northern Graphite Corporation. They hold 53.15 million shares fully diluted with a market cap of 68.5 million CAD. That equates too pretty much the same in AUD. Their capex requirements are 100+ million CAD to develop the Bisset Creek deposit.
"Cash mine operating costs will average CDN$695 per tonne of concentrate over the mine life. Due to the flat lying nature of the deposit, production can be expanded without any capital investment required for additional stripping or pushbacks of the pit walls. The waste to ore ratio actually declines in the PEA expansion scenario and contributes to lower operating costs. The initial capital cost estimate to construct the processing plant, power plant and all associated mine infrastructure remains at $101.6 million including a $9.3 million contingency. Under the PEA, an additional $45.2 million in expansion capital has been added in year three for the parallel mill circuits and sustaining capital over the mine life was increased by $15.7M for additional mining equipment, tailings facilities and other infrastructure."
"Almost all production will be high carbon, +80 mesh large flake and over 50% will be +50 and +32 mesh jumbo sized flake, resulting in premium pricing."
Now forget about Epanko deposit for a bit and look at Merelani.
"Sufficient reserves were initially identified for a 40-year operation at a mining rate of 15,000 tonnes per annum of high-grade flake graphite of 97-98% purity."
Merelani "Graphite Quality
Mean grain size composition of graphite flakes produced from the Block C Graphite mine is approximately 35% > 300 ym, ca. 35% at 150 Ð 300 ym and about 30% <150 ym. Graphite concentrates from the Block C mine returned an apparent density of 580-620 g/l, and contained 2.1-3.1 wt% H2O and 98.66-98.67 wt% graphitic C."
Bisset Creek
"The overall concentrate grade averaged 95% Cg with a 97% recovery. A concentrate which grades 94% Cg and has a flake size distribution of 80% greater than +80 mesh is the industry standard large flake product. Almost all Bissett Creek production meets this specification as 75% of the final concentrates were +80 mesh. Approximately 5% of the concentrate was +100 mesh, 94% Cg and 10% was +200 mesh, 93% Cg. Less than 9% was very small, -200 mesh flake grading 83% Cg. Concentrate smaller than -150 mesh and 90% Cg may not be salable unless it can be upgraded to +90% Cg which the Company believes it can achieve by recirculating the -200 mesh flake within the circuit."
So I guess you have to make a judgement call. No way will Merelani refurbishment be in the 100+ million dollar bracket. Bisset Creek are targeting 20,800 tonnes of graphite concentrate per year.
Oh yeah..I havent even spoken about Epanko.
KNL Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
