Opened my position with a small bite at 9.5c and will continue to add around these levels or hopefully lower. Been watching this one for a while too. I’ve now got 3 graphite plays in the portfolio - lots of upside over the coming years.
This is now around 0.1x on a P/NPV basis with the DFS out anywhere from tomorrow to about 90 days (my take on mid year). The DFS should include a bigger resource and higher basket pricing plus updated costing. Overall I see a much higher NPV with a longer mine life. That could push it down to 0.05x, which is simply too low.
I see a short term target of around 13.5-14c which is where the CR was at off the back of a positive DFS. That will be the first point of resistance and if it can clear that then we then look to the upper gap just below 16c that will need to close. That could be triggered by positive JV info which should come in the back half of this calendar year.
Overall lots to like at this market cap. GLTAH
BEM Price at posting:
9.5¢ Sentiment: None Disclosure: Held
