Hi Ether, the points you make are definitely right because they are based on the reality of market sentiment perspective which often results in under and over valuations. That is especially the case with penny stocks.
I can understand investors choosing to invest in a company with projects located in Australia for obvious reasons. However, it's incredibly important to take into account all aspects of a company, its operations and quality of product, especially in the G space. Mining and processing in Aust involves high costs mostly associated with high labour costs. The worry for local miners has to be the prospect of increasing labour costs too. As it is, geologists, drill rig contractors and miners are on big bucks compared to those in Madagascar, for example. In fact, the disparity is shocking but it does favour BEM. And, with the current low unemployment rate in Aust, I only see labour costs and staffing issues making it tougher for Aussie miners down the track.
BEM is mostly in that developmental stage which is a little less exciting (but less risky than exploration from an investment pov),,, but in saying that there is plenty of newsflow to come to lift the SP. And, I believe a BOA or two could put a firecracker under the SP, as would an update resource report. The latter would also firm up our NPV and IRR figures.
Yes, lithium stocks certainly steal the limelight. Hard not to given the soaring price of lithium. However, it is getting to a stage where OEMs are starting to look at alternatives to lithium batteries purely because the price of lithium. Whereas, natural graphite is cheaper than synthertic whiich is predominantly used in battery anode manufacture. But its more expensive and less environmentally friendly than natural graphite. Experts are tipping that the price disparity will narrow as the demand for natural graphite increases. Even if alternatives to L-ion batteries are adopted (as per Tesla's latest move into hydrogen), there is always going to be demand for graphite. Afterall, graphite is used in making the bipolar plates in hydrogen fuel cells, for example.
RNU is an example of how marketing and social media can propel a stock's SP amd MCap beyond what would have to be considered a realistic valuation. Given that its a company nowhere near production, yet has a MCap as high as its project's NPV, one would have to view its SP with trepidation. Sorry, but there's been a lot of hype surrounding RNU and I believe its now way overvalued. Whereas, BEM is the polar opposite and it does have a very achievable CAPEX, as you state, Ether. And, we are about to become the only ASX company to produce Expandable Graphite on a commercial scale.
Its interesting to see Next Source's chart and where the most SP accretions occured - in the lead up to the financing of Molo and recently leading into construction. Whilst cashflow from Maniry is a long way off, we are closer to cashflow from our Expandable Graphite JV operation (don't forget).
There is a lot to like about BEM except its curret lack of admirers!
