VXL 0.00% 11.5¢ valence industries limited

Ann: Corporate Update, page-29

  1. 27,232 Posts.
    lightbulb Created with Sketch. 82
    " is not proof of lack of profitability but it's a strong indicator."


    The lack of humility in your post suggests you will continue,with your unsubstantiated extravagant language,
    I ask you to cease and desist from this practice.


    The Bottom Line

    Selling graphite is the big challenge, not producing it. Therefore, investors in the graphite space need to stop looking at companies in terms of deposit sizes, flake size, and metrics that would normally entice mining investors such as a high NPV or IRR. There are innumerable graphite deposits out there–after all it’s just carbon crystals–and there are plenty of companies that have made their deposits look good from a mining perspective while neglecting the sales and economics side of the business.
    Investors who have criticized this perspective continue to point to rising demand and note that their favorite graphite companies will be able to supply it, citing the low cost to get it out of the ground and the fact that it can be used in various graphite applications. They are used to other mining subsectors where if you can pull it out of the ground and purify it you can sell it without even meeting the buyer. Graphite products are too plentiful to be suited for a futures exchange, and it is not uncommon for consumers to request customized products. So while the sale of gold is largely perfunctory, the graphite producer must have a greater level of awareness of its customers’ needs so that it can anticipate and meet them.
    No graphite junior has reached a point where it can do this, and this is the primary reason why graphite stocks are so risky. But we know the demand is there and that it will likely rise rather significantly over the next several years. This warrants taking a small speculative position in a company that is clearly working towards this goal using a viable strategy. The company, or companies, that pulls this off will do extremely well by its shareholders.

    http://miningwealth.com/investing-in-graphite-part-2-individual-investment-ideas/

    From the report;

    " Based on current market activity and customer indications, the
    Company believes this price assumption is conservative, and that a selling price of towards US$1,000
    (A$1,389) can be attained. This is especially the case for the higher grade products that the company has
    recently produced under a test work program in the plant, which demonstrated the ability to produce 97%and 98% LOI flake graphite using additional grinding and flotation stages. "

    TGChttp://hotcopper.com.au/threads/ann-corporate-update.2717926/?post_id=17184358

    In relation to its customers requirements,I'm of the view that VXL are above the rest .


    Raider
 
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Currently unlisted public company.

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