Upside potential has improved significantly now that Sojitz has confirmed KNL's superior Graphite with outstanding characteristics, still very much looking forward to reading specific details of the test results and
what production cost will come in at and what sell price we could achieve.
I know we where 5 weeks late with the Sojitz announcement, but people loose perspective so quickly...compare KNL to MNS, I only compare MNS at the moment as I don't trade and therefor don't see any value in any of the other G plays as I think they are to far behind and the game will be over by the time they are ready to look for finance, so comparing to MNS:
Most of you that have been around for more than 2 years now know MNS has changed their business model a few times but by using good marketing and management using the right channels ie Commsec ExecSeies interviews, Broker Reports mentioning MNS in SMH etc claiming huge offtakes, unmatched Graphite Quality
31.03.15 US150mil DEBT FINANCE BINDING TERM SHEET SIGNED WITH SINOMA TO DEVELOP NACHU GRAPHITE PROJECT with an amazing Debt to Equity ratio of 90:10
20.07.15 Frank P buys $193k on market, I'm convinced he bought this big thinking Finance and offtakes are a done deal, since then many things have changed, but have to give management credit for managing to keep the fire going by continuously keeping the market interest/and SP very high with various elaborate statements like Chinese offtakes are still in place the we read in the Blue Ocean report that those Chinese offtakes can be superseded by Western offtakes??? and not one word from management or MNS holders - then constant releases on how well their G performs, but no western end user even trader willing to put their name in public to confirm MNS's claims?? I said before they might be able to pull some Western offtakes but now i doubt for the full 240ktpa, but MNS'rs on full hype mode that the full output will be signed off any moment....fast forward to last weeks investor presentation, now they hoping to get one Wester offtake over the line and that combined with the Chinese offtakes should clear the way for finance, following with interest on how this will play out...
Compare to KNL:
KNL set out on a specific path to production and is right on track so far however with the lowest SP and MC, ie Market has so far not taken notice of KNL - this will change from Monday/ Tuesday...
Amongst some of the reasons would have to be that MNS was informing the market their G is superior, and nothing from KNL, even though KNL advised the Market back in Aug'15 about it's BatteryManuf Facility Study, then in early Feb'16 re MOU with Sojitz followed by Bulk Sample announcement late Feb'16....so our testing took 4.5 months and a decision was made by a multi national co to use our G, now compare that to MNS 12 moths and counting....
Sojitz deal will have very big positive flow on effect on us, it will ensure excellent Finance Terms, I know KNL has stated Finance was not dependant on Sojitz deal and some of you have the same thought but I'm convinced it has a very positive impact..A) NedBank will now see us as a very compelling proposition B) If there will be an equity component our SP, thanks to Sojitz will be at least double then what it would be without it = 1/2 dilution C) Without knowing the full Sojitz deal details, I'm very optimistic of our BatteryManuf Facility will be built sooner rather than later which in turn will accelerate our production increase timeframe, and once we get to stage two of 84ktpa then the EPS figures will start to get very interesting especially if we manage to keep our Share registry the lowest compared to any other advanced G play out there.
Will have to continue another day...GLTA and all IMO
(20min delay)