balama - dominator in two world markets?

Today's quiet announcement of successful infill drilling results actually contains very significant news for the world's users of two major products - as well as for SYR holders.

Ostensibly, the announcement merely confirms what everybody strongly suspected, which is that the Ativa zone alone(a small fraction of the Balama deposit), contains more graphite than any other known deposit in the world. But that drilling and reporting was just to satisfy the technical requirements of the JORC rules, which will allow the upgrade of the "Inferred" resource to "Indicated" status.

The big news in this announcement is tucked away on pages 6 and 7, which some people might not get around to reading. Well, they should. Because SYR has stated very clearly that they are not just going after the market for natural graphite, but also for other forms of carbon - graphite electrodes, petroleum coke, and Anodes for the aluminium industry.

Why do these matter? Because they represent, collectively, about TEN TIMES as much sales value as the entire current natural graphite market. And only SYR can address this market, because no other graphite deposit is big enough to provide the guarantee of supply volumes that the users need.

And that's not all! By increasing the volume of ore throughput, SYR automatically produces large quantities of vanadium, which can be extracted at much lower cost than is possible by the the current major world producers. SYR will be in a position to supply a large part of the world demand, very profitably.

A run on my current model of the company, with conservative assumptions, now shows an NPV much more than ten times the current market cap.

Please read the announcement - carefully. It's very good news!

Cheers, Prime1