RNU (ASX) General Discussions

Originally posted by Scarpa: ↑

I like this post - the benefits of a long term hold compared to worrying about day to day price movements.

What are the fundamentals here?
1 The key is this is one of only a few significant graphite deposits outside China with a decent deposit. Quality matters and always will - Post #:51384197

2. It is a well progressed project that will enter production before many of the others that are deemed prospective.
3. Relating to 1 and 2, there is going to be a significant graphite shortage and those getting to market first will be the ones who will reap the benefits the most. To meet EV demand in 2030 of say 85 million EVs per annum, going to need 30 - 40 new graphite mines the size of RNU proposed combined Stage 1 and 2, assuming a 50/50 split of synthetic graphite/PSG. This doesn't even take into account the traditional needs of graphite, nor graphite's role in the energy storage market (i.e where lithium batteries are used as storage). The basis for this comment is in Post #:65496507 for those interested.

4. Yes I expect construction costs etc to increase - refer Post #:63749800 about inflation/discount rates - from previous assessments, but I also expect graphite prices to increase as well, meaning IMO I doubt IRR and NPV will change from previous studies. I suspect they will slightly increase. But NPV is discounted cash flow stream, in production you move to nominal metrics based on EPS and P/E ratios so I expect if I have interpreted things correctly SP will be well north of this in production. But yes I do look forward to the revised estimates, but I still think getting to production this side of 2025 is a key and RNU does need to get cracking. This doesn't mean that they are not doing anything in the background - clearly they are given we are in a graphite shortage, but as usual retail are always the last to find out. This is why shorters/manipulators can always play with a SP as most retail are too impatient to hold long term when they come across a stock that is likely to get to production, noting 1 in 100 exploration plays from recollection ever get to mining. RNU and LTR IMO are 1 in 100 stocks that do get to mining (just like PLS did before it). take copper - huge shortfall coming but only a few mines have got up last 5 years and this is why RNU is in a good place in the graphite space. On copper -
Copper shortage getting real – Richard Mills – Ahead of the Herd

5. This post and the embedded posts therein provide the basis IMO of what they are proposing - I suspect the BAM will simply update figures etc - Post #:65498108 The embedded posts therein also give my initial views around what type of SP I would be expecting in production, assuming the profitability is what is assumed in the initial studies. And it is much higher than the current SP is what I am expecting long term, but obviously the BAM will confirm my view or otherwise

6. I don't post much here as there is little to say these days - it is about progress, and progress here is now about getting binding agreements, get to FID and start construction. Silence is fine provided they are progressing things with a view for a FID decision been mifd this year, given construction period and IMO the importance of getting to production in 2025.

All IMO

Expand

Hi Scarpa.

I, like many here, have a lot of respect for your posts and knowledge. And in the interest of not cross promoting, can you tag me in any copper miners that are in a similar position or more advanced than RNU in the graphite space, or any that are further developed that might be of interest please if you have knowledge of any.

I have begun reading up on copper as i see the shortfall is about to be explosive but i know little at this stage and would truly appreciate the help.

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Last 8.8¢		Change 0.002(2.33%)		Mkt cap ! $223.6M

Open	High	Low	Value	Volume
8.6¢	8.9¢	8.5¢	$171.6K	1.972M

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