General discussion for graphite/graphene news, page-370

Thanks for your reply @MrGraphite2

I can give you my opinion: If you have a different opinion it is totally okay for me. The stock market is a game and people have different strategies.
I believe that the news I posted shows that the US is not only "talking" about securing critical minerals and build their own supply lines but also acting on it. It is not a big thing. But it's the right direction. And because it is graphite and because it is large flake graphite I thought it will be interesting for HC readers because there is a connection with Urbix Resources - also a US player that needs graphite from somewhere.

Regarding the Urbix deal: I understand that your question is sarcastic. I am also not sure how familiar you are with this kind of joint ventures. What I know is that it can take several years of testing before reaching a final agreement. I remember two real life cases --> Talga Resources (Graphite) and Lithium America (Lithium). In the case of Bass Metals I don't know what is going on in the background. I can only learn from previous investments and there it took always a lot longer than I and most people hoped it would. In both cases several years. However, I don't see anything unusual here. I am happy that it looks like the joint venture deal is still on the table. This shows what we already know, the BSM resource is of exceptional high quality - that is why Urbix Resources is still sitting on the table with BSM.

I am not sure if you have read my article about Bass Metals:
https://www.never-stop-asking.com/blog/bass-metals-zero-or-100x

Most likely Urbix is making tests with the graphite of BSM. To go back to the example of Talga they started with grams, kilograms and later tonnes of testing material until the other company agreed to close the deal. This entire process took years with nothing but announcements that looked similar like the ones from Bass Metals that states "we continue to..." . I am not sure at what stage BSM and Urbix Resources are, however, we have confirmation from last December that they are still in talks. To me this is good news, not bad news.

- If the new DFS is good enough and the testing was successful --> Urbix Resources is likely to agree on a JV to get their supply from Madagascar (and therefore securing critical high quality graphite)

- if the DFS is good enough and Urbix Resources goes into the JV, the financing will most likely happen in some form or another.

After my research I came to the conclusion that I am ready to take the bet because I believe the problem was not the Graphmada mine but the strategy (equipment, timing, execution --> management). Now you can be salty and look for another investment or you can bet that they will change the momentum again.

I think risk/reward for this stock is outstanding on those levels. If the above mentioned what ifs happen then the market cap of BSM will maybe be around 500 million - it really depends on various factors like (NAV, deal conditions, time frame, momentum). BSM also has a lithium deposit and might be in discussion with other companies that would like to secure quality large flake graphite.

- From a 20 million market cap to 100 million is already a 5x
- From a 20 million market cap to 500 million is a 25x
- From a 10 million market cap (when I bought) to a 500 million market cap is a 50x
- If they go into production and graphite (small and large) really is getting into a serious supply/demand problem we don't know where graphite prices will be. I believe we will enter the 'age of battery' and therefore copper, lithium and graphite will be the new oil. BSM is sitting on a high quality mine. Everything is possible. This might be a billion dollar company when in production in 10 years.

The DFS in scheduled for this year. This might be December 2021 or February 2021. Let's assume it is somewhere in the middle in summer 2021.
If the DFS is as good as we expect (with all the improvements that they announced) then marke cap should be above 100 million (or more than 5x from now). There is a high chance that the stock is moving in anticipation of a good DFS. That is what I believe is going on when I see the increased volume in BSM. Something is going on here.

To me it is all about risk/reward...