UK view Every company has risk but there's an awful amount of...

UK view

Every company has risk but there's an awful amount of value/upside chucked in at this Market cap.

Stratmin Global.......£2.7m
Bass Metals.............$4.6m!

Not much volume on ASX, Aussies seem to be waiting for the deal to go through before the buying frenzy starts.
Once deal goes through Bass-Stratmin Market cap on ASX will be...?

Let's see what our of Australian non-producing graphite peers, years away from production, not generating any cash, are valued at...

Australia (ASX) May 4, 2016

Magnis market cap tripled to now $231 million!

Kibaran Resources....A$35m - £18m
Volt Resources..........A$35m - £18m
Talga Resources.......A$42m - £23m
Magnis Resources...A$231m - £120m
Syrah Minerals..A$1.13 Billion!! - £589m

Madagascar peer (TSX-Canada)
Energizer Resources..C$32m - £17.5m
Production start 2018

Stratmin/Bass.....................£2.7m/ $4.6m
Hmmm

Chris Berry, Graphite Mining Analyst:

The point of this note is not to pick winners or make companies look bad, but rather to point out some of the inexplicable dislocations in the graphite space.

How can STGR, a graphite producer, have the lowest market capitalization and enterprise value of its peers? Regardless of the industry, shouldn’t a company generating revenues be more valuable than one that isn’t?

A Graphite producer ought to have a higher valuation than aspiring entrants.

After all, the proverbial boxes have been ticked:

Permitting, sufficient infrastructure, customer base, real producing assets (as opposed to highly speculative land with evidence of graphite), revenue and operating cash flow.

As always DYOR
GLA