"GPX reports Chinese basket price estimate of US$1914/t, 57% higher than the PFS. Our valuation for GPX more than doubles on this price deck"
"Our valuation based on the new price deck is around A$2.30-2.40/fully diluted share, which incorporates a selldown to the Chinese partners (which will leave GPX’s share largely funded), and a free-carry of 16% to the Tanzanian Government. In our view, the significant share price discount (ca. 85%) reflects uncertainty regarding the Tanzanian situation and risk attached to the Chinese deal. It also also reflect the market’s current uncertainty with graphite pricing, particularly coarse flake expandable. Graphite is one of the least well understood of the global commodity suite."
Hopefully the SP gets a little kick out of this release today. But the biggest kick is coming soon, after Chinese New Year when the partners focus on finalising the deal. Not long to go folks!
MVL Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
