Some background on Stratmin in Madagascar. DYOR to confirm....

Some background on Stratmin in Madagascar. DYOR to confirm.

Madagascar is a Brown Fields Area for Graphite Production. Graphite has been produced there for, I think, a 100 years.
Most importantly Graphite continued to be mined there all thru the 1990's to present day. See the Chinese in the 90's dumped Graphite onto the world market at such low cost that all "Western" operating mines closed down. But not in Madagascar, their mines produced at Low Cost Chinese Competitive and Madagascar Flake has qualities in Flake Size, Purity and absence of impurities that maintained it's Market.

Stratmin began Operations/Exploring there in 2012 but ran into problems when it started producing in 2014.
They had a poor operation/plant set up that didn't maintain their Flake sizes /Metallurgy. These were all ground down to Fine with under 90% purity {TGC]. New Management was appointed. The Plant was "tweaked"/fixed and Stratmin started to Out Put saleable, marketable 94%+ Large Flake. At this point early 2015 again New Management from Australia was appointed and an Offtake with Asbury's set in place.

Here's the 3 Three Year chart of Stratmin with it's Fall From Grace since 2012. It is described in Broker Speak as a Recovery Play, today.


Stratmin only produces ATM about 6,000 tonnes. It's a Boutique operation as compared to other ASX graphiters proposing to do 200/300,000 tonnes Super Pits. Stratmin however is actually currently Producing, churning it out to the current 2015/2020 Market of the ROW [rest of world] while Super Pits can only propose production and sale to China [the Dragon].

Anyway there's controversy about will the Dragon actually go thru with financing/ buying all the 100's of thousands of tonnes [about 600kts] that it's MOU/BOA and LOI'd for.
Stratmin has plans to expand production to I think 30kts in 2016. This is what BSM's capital is for.

Anyhow London last night "consolidated" on the News of BSM confirming the deal.
On weekend will try and do a search to find any "cross ties" between Stratmin and BSM Australian Directors particularly Brett Boynton and Rick Anthon. It could well be that this was "planned" from when Boynton was appointed Stratmin MD.
Also the Sept Quartleys of Activities and Cash will come out this month and probably there'll be some BSM news, Management Directive issue too To raise the remaining $3mil odd for end of November, a all shareholder SPP with options [?] may have to be declared. These take 6 weeks or so to finalise, don't they?

Stratmin operating a 20/30/50kts Production mine 2016/17 would have ,I reckon, about a A$50mil Market Cap, maybe even closer to A$80mil even $100mil depending on Offtake Quality and volume sales.
BSM is a better graphite play than the other 2 centers of the ASX Graphite Sector drilling nearology holes around the "majors" SYR/MNS/TON/KNL.
IMO of course. DYOR.