This is a very useful piece of research for explaining the...

This is a very useful piece of research for explaining the valuation model and parameters behind the GPX share price.

In previous posts I've hypothesised about how GPX could easily go to $20, which even that is now looking quite conservative. It will all depend upon how many ktpa can be produced out of Chilalo, China is now on record scoping their expected needs at 2mtpa.

The research comes up with $2.30-$2.40 using the PFS parameters apart from a modest uplift in annual production from 69 to 75ktpa, and the increased basket price. However, the lastest GPX company update highlights that many other PFS parameters will be better or much better in the more recent FS completed by Suzhou. Can't wait to see that!

Using the valuation model in the research, production has to get to 630ktpa to hit $20. Is this possible? The last time we stuck a drill in the ground the resource was increased by 80%, and we've still only drilled 3km out of about 35km of high-conductance targets at Chilalo. Exploration target tonnage is 100-350Mt @ 3-11% TGC. Taking the middle of both ranges equates to over 15m tonnes = 23yr mine life @ 630ktpa.

That'll do it!

PS If we wanted to get greedy we could buy up some of the other excellent graphite resources in the district that don't look like having a hope in hell of ever seeing production.

PSS haven't even talked about in-country downstream processing yet, which is high on Tanzania's agenda