StarPlus, Did some research last night and came up with some...

StarPlus,

Did some research last night and came up with some answers to your questions;


Too many issued shares . Ultimately it gets down to the company’s ability to increase its valuation/market capitalisation and the number of shares on issue will determine the share price. If its deemed necessary (i.e. to attract institutions) a consolidation can always rectify this. Interestingly FMG did a share split (10 for 1) to improve its liquidity and has 3bn shares on issue (and it has barely issued any stock during its development funding – all down with bonds). If this comment is directed at share issues/dilution then using debt to fund project development (the biggest dilution event for most juniors) is clearly a strategy by Volt to drive manage equity dilution.

Very high expenses each month, During the Stage 1 FS including drilling, environmental approvals, Resettlement Action Plans, development financing processes, offtake visits and agreements etc monthly spend will be higher or nothing is getting completed. If VRC are not spending money during the development phase, then the company is going nowhere.

Lack of access to large pool of funds. VRC have a viable project development funding plan based on a two stage project development strategy and from previous conversations with Trevor they remain confident of completing the Stage 1 development funding in the near future. Bunyu’s resource size combined with a good management team

Graphite is losing it's shine with the emergence of large number of small players in a number of countries. That’s a matter of opinion and not supported by graphite prices which overall remain strong. Syrah is still ramping up which may have an impact of fine flake prices in the short term (most of their production) but overall the flake graphite price outlook is positive. The ability to move through the development phase activities and get funded will differentiate the junior companies in the graphite sector. Bunyu’s large resource size combined with good management can make a difference in the market.

So, investors are losing interest. I think it's fair to say that small cap resource stocks in general have been soft lately with trade war concerns and other macro events weighing on metal prices and this in turn causing a general downward trend. There seems to be enough interest in VRC however to support buying in a recent heavy selling phase . I have picked up more shares recently myself as previously disclosed.

You mentioned that the graphite quality is not very high in VRC deposit. This means, VRC is very risky. VRC’s Bunyu Project is not as high grade (this is not quality) as some other graphite mines. In terms of quality VRC have published testwork from third parties that shows the Bunyu graphite has a high purity crystalline structure with excellent conductivity (good for batteries) and good expansion results for the flame retardant building industry market. The ultimate test is offtake agreements and they already have a binding graphene offtake and a number of existing agreements with Chinese groups that hopefully VRC will soon announce the conversion of some to binding offtake agreements for Stage 1 product.

The question I would be asking how long VRC will last in the current situation? Volt will announce the Stage 1 FS soon and complete the approvals and funding processes in the near future. This is the pathway to Stage 2 which will position the Company to be in the top 3 producers in the world. So I expect the Company will be around for a long time. I would not be still holding my stock if I did not believe this to be the case.

All of the above information has already been announced to the market over the past 12 months. Sometimes it requires some time and effort to look back at previous announcements if you need some reassurance .
I am hoping these questions have been answered to your satisfaction. At the end of the day it is up to each shareholder to decide whether they want to remain a shareholder.
I continue to have full confidence of the team led by Trevor. At the same time I am fully understanding that things sometimes take longer then expected. I have already posted this on numerous occasions.

Cheers.