Analyst Comment: This is an excellent achievement for Graphex, and ground breaking for a junior ASX listed company given the terms of the proposed transaction and the stature of the parties involved in the Chinese Syndicate. The syndicate is led by CN Docking, a subsidiary of CNBM (China National Building Materials) a global fortune 500 company who are responsible for producing more than 50% of China's building materials.
Essentially, this transaction will see Graphex fully funded through to the commencement of production at the Chilalo Graphite project (TSI estimate - 1Q19), through the project level equity investment (US$18 to US$20m) by the syndicate as well as their commitment for a debt guarantee of up to 65% of the capital development costs (likely to decrease).
Just as important as the project's funding, is that 50% of the project's production has guaranteed offtake through the syndicate. We understand that the syndicate was prepared to take a greater amount of the project's offtake however, by selling to third-parties outside the syndicate, there is greater transparency as well as increased pricing tension ensuring maximum revenues for Graphex.
Valuation: We have increased our valuation to $1.61 / share (share price $0.43). The change in our valuation is due to lowering our discount rate (current 11%; previous 12%) as well as adjusting our project financing terms in line with the Term Sheet.
DYOR.
Champee
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- Ann: Terms agreed for joint venture and offtake transaction
Analyst Comment: This is an excellent achievement for Graphex,...
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Last
0.9¢ |
Change
0.000(0.00%) |
Mkt cap ! $7.774M |
Open | High | Low | Value | Volume |
0.9¢ | 0.9¢ | 0.9¢ | $487 | 54.07K |
Buyers (Bids)
No. | Vol. | Price($) |
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2 | 1719911 | 0.9¢ |
Sellers (Offers)
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1.0¢ | 201907 | 2 |
View Market Depth
No. | Vol. | Price($) |
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2 | 1719911 | 0.009 |
1 | 924413 | 0.008 |
1 | 700000 | 0.007 |
2 | 950000 | 0.006 |
1 | 300000 | 0.005 |
Price($) | Vol. | No. |
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0.010 | 201907 | 2 |
0.011 | 728280 | 2 |
0.012 | 1015500 | 3 |
0.015 | 200000 | 1 |
0.024 | 560400 | 1 |
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