Expandable Graphite : even better business opportunity than battery anodes ?, page-4

Hi guys, for those new to the story, Bass Metals already tested the suitability of its graphite for expandability and results demonstrated best in the world performance way beyond anything available on a commercial scale in the market (due to largest graphite flakes in the world and high quality madagascar graphite flakes known for its ordered crystals and high purity). This means BSM could produce and sell easily thousands of tonnes of premium priced expandable graphite (up to 4500$ per tonne).

Assuming stage2 is 20.000tpa, BSM could for stage3 either :

1-use half production (10.000tpa) from its own mine as a feedstock for the expandable graphite processing plant ;

2-expand stage2 to 30.000tpa and use the additional 10.000tpa as a feedstock for the expandable graphite processing plant.

Both cases will result in more profits. Some calculations :

First conservative scenario (no expansion, total 20.000tpa production) :

10.000tpa of large flakes run of mine @ average basket price of 1200$ per tonne and costs per tonne of 400$ (800$ margins per tonne for profits of 8 million$)

+ 10.000tpa of processed expandable graphite @ average price of 4000$ per tonne and costs per tonne of 1500$ (2500$ margins per tonne for profits of  25 million$)

Total annual profits : 33 Million$
(at 12x earnings fair value market cap : 400 million$)

That translates to 13.8 cents per share or a 6 bagger from current levels !
(at fully diluted 2.9billion shares once all oprtions are exercised)


Second optimistic scenario (expansion to total 30.000tpa production) :

20.000tpa of large flakes run of mine @ average basket price of 1200$ per tonne and costs per tonne of 400$ (800$ margins per tonne for profits of 16 million$)

+ 10.000tpa of processed expandable graphite @ average price of 4000$ per tonne and costs per tonne of 1500$ (2500$ margins per tonne for profits of  25 million$)

Total annual profits : 41 Million$
(at 12x earnings fair value market cap : 500 million$)

That translates to 17.2 cents per share or a 7 bagger from current levels !
(at fully diluted 2.9billion shares once all oprtions are exercised)

   

From Bass Metals 24 may 2017 news release :

TESTS CONFIRM INDUSTRY LEADING EXPANDABILITY FOR GRAPHMADA GRAPHITE CONCENTRATES

HIGHLIGHTS

• Independent test work on a bulk sample taken across a range of 2016 production sales stock demonstrates industry leading expandability results.

• Expandability tests across all flake sizes delivered excellent results, with the maximum expansion volume of 510 cm3/g achieved with extremely large flakes > 400 microns. These results exceed typical concentrates currently available.

• Expandable graphite receives a price premium and is in significant demand due to regulatory pressures forcing higher adoption as fire retardants and there being only a few suppliers in the world today.

Quote : "Currently the expandable graphite market sees the largest price growth of any graphite products due to regulatory pressures forcing higher adoption verses brominated alternatives in fire retardants and the fact that there is very limited supply, due to there being only a few suppliers in the world today. Prices up to US$4,500 are achievable for super jumbo natural flake at high purities. Bass has the potential to rapidly move into expandable graphite and realize higher margins with an already producing asset and these excellent test results."


Happy multi-bagger graphite and lithium investment to all !