Pel, and still you skirt the question in regards to why you have a sell sentiment but you yourself continue to say you hold, this has been the case for a couple years now and yet the question never gets answered- why? Because it is ridiculous along with these comments "....Last week it was announced Tesla will build a mega factory in China and shares up about 200%+ in past few months......one would assume they need this tonnes of graphite ...from where?...this so called predicted shortage of graphite hasn't had the knocking on VRC's door it seems...."
How do you know this won't have an impact? We already know that stage 1 is all spoken for with offtakes signed and more to be announced upon funding. This graphite you speak of will have to come from somewhere, whether that is Volt or somewhere else still means that there is going to be a shortfall somewhere as a result. So there is going to be a shortage of graphite and this will coincide with stage 2 of our project. Stage 1 is already sold. Stage 2 is where it really gets interesting and ramps up in terms of tonnage per annum.. all bodes so well for VRC. The fact that there is going to be a shortage and that we have a superior flake and command the highest price on these is very exciting.
The reason the SP continues to sit here is due to ''new'' investors being nervous that the funding is not secured yet. I and many others have our fill and a little more already so the new guys will wait for this to be confirmed. I do not care that it is ''lagging'' as I know that this is natural in terms of companies moving from explorer to miner and I am comfortable that they will achieve this so I do not care about the current SP. I know the economics are sound, I know they are on a roadshow and will be presenting exceptional numbers that work for all parties and the small some of $30M is a pittance in compared to other miners in a commodity that will be in such short supply. The payback periods on both stages are minuscule.
The following points are also going to be celebrated by potential investors:
-Stage one of the Bunyu development is forecast to span an initial seven years and the payback period for the CAPEX is estimated at a little over four years. The EBITDA for stage one looks like being around USD$93.6 million and Volt is planning to use the profits to fund the broader stage two development that shows an annual EBITDA of some USD$195 million and spans around two decades.
-The company says it is sitting on the largest Tanzanian graphite resource, which currently stands at a JORC-compliant, 461 million tonnes grading 4.9% total graphitic carbon or “TGC”
-The value of graphite on the market largely depends on the size and purity of its “flakes” – Volt has forecast a sale price of US$1195 per tonne of graphite product originating from its stage one project, whilst the operating cost to produce the product is US$664 per tonne.
-Makers of building materials are expected to contribute to a 4.6% annual increase in the flame-retardant market, which is expected to be worth USD$12.81 billion by 2021 - this is only the flame-retardant market!
-Graphite is also used to produce anodes in lithium-ion batteries, generally in quantities that surpass those of lithium used for those same batteries by up to ten times, making it a lesser-known, but important component of lithium-ion batteries. Everything is renewable batteries these days and will only continue and also will only grow and the UK out lawing petrol/ diesel by 2040- more countries surely will follow
All of this as a starting point is why I sit comfortably, is why I do not care about the current SP, it will look after itself once the funding gets announced,
All of the above is why I believe it will be achieved and even over subscribed.
VRC Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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