...hallo @Boges ...apologies, not really here to impress people per se... just an opinion / hobby....thanks for the compliment.... but I am mindful that I am wise enough to know that I don't know really that much
....assuming graphite supply is just for batteries is your first mistake... massive demand for various other things... with future supply dwindling... due to synthetic graphite's air pollution issues...
then the reality of air pollution caused by synthetic graphite as alluded to earlier....there will be various bans soon...
Have a look at current pipeline projects and where most of them are... waiting for financing/funding basically... slide 7.... so the question is why any financier/ investor would spend any money on a new project, when they could rather acquire Syrah for say ~$500M for an off -the- shelve operation. But, I am mindful about the beta risk of places like Mozambique...but risk adjusted, this is a no-brainer...they have spent ~$600M to date to develop Syrah...and the graphite in the ground could be worth another ~ $1B;
Price for graphite is academic for say a fully vertical integrated solar company... as long as you can produce it lower than the market....that is where the synergy is....
And that is why I am so frustrated with the management team's current M.O. .... they don't appear to have a clue...
The reality is still...NAV without reserve valuation is ~$600M...with $110M cash...and ZERO cash debt... Market cap ~$90M.... so EV is negative ~$15M... so market deem this venture at ZERO, after management has raised over $900M to date....
forget about handing out free product or producing more product at loss ($15M/quarter cash burn)... that is reactive... with no guarantees... the fact they are following this approach, shows that nobody trusts them... basically show us the product first... setting these incompetent people up for failure....and once you have spnt all of their cash doing that... they will probably take the company over once in administration.... that brings me to my next point...
honor current contractual obligation via off market sales... why do you want to burn cash, honoring contracts if you could just re-balance the market through cheaper off market purchases?
Get rid of Mr. Verner et al.... he has burned too many bridges already....vote of no confidence.... nobody trusts him by the looks of it.... even his own CFO jumped ship last year...well, looking at his picture, not even his own mom probably does either
put the whole operation on Care & maintenance... buy more time to reassess the demand & value add equation;
time to change the negative narrative of the company... last 3 years were just one PR disaster, after the other... time to recalibrate the business model & vision.... get a consultant to value your >40 year of graphite reserves... add that as intangibles to your balance sheet so that people can fathom the real value of this company. Or do a sensitivity....say graphite price at $800...$1000...$2000...what is the deemed value of the reserve....and add that to your Roadshow slides...see below...
spend your time rather on finding an acquirer, now that you have proved to everyone that you can't be an independed producer in this market.... rolled up into a diversified mining company...BHP etc or into a vertical integrated operation - ask Goldman Sachs et al to do roadshows, targeting vertical integrated opportunities etc. ... there are so many companies looking for cost saving opportunities or graphite companies trying to find funding etc.....this project could crystallise over $billion to the right vertically integrated solar company...
so not sure about the battery quality strategy... don't know much about metallurgical processes i.e. Chemical Vapor Deposition (CVD) issues etc.... will leave this to the subject matter experts (SME)...my SME is pure vanilla M&A after a few years at a Tier 1 Wall Street investment bank .... sorry to disappoint you
...but no, they want to burn more cash & destroy more shareholder value without any rationale or valid reason ... like the last three years... so please send those emails to everyone on the board & management team...CC investor relations.. warn them & ask them to advise... and file it.... it would help us later to go after each person's personal assets should this thing go pear shape.... I hear that Mr Verner has a few nice personal assets we could liquidate....and share among us...
Bottom line: They can still turn this back to be a >$1 billion company again...10 times current share price....but time is running out... that $110M cash will go fast based on the latest myopic M.O. and it would be difficult to re-strategise when your options are limited... basically, now or never....
...still my 2 cents...
SYR Price at posting:
22.5¢ Sentiment: Hold Disclosure: Held
(20min delay)