Hi guys,I bought a very small parcel of RNU about a year ago (a...

Hi guys,

I bought a very small parcel of RNU about a year ago (a few days after the trading halt and PEPR announcement -- idiot!). I got a bit carried away and bought pretty much at the top (36 cents?). From memory the price dropped to about 25 cents (I bought again -- absolute genius!), then went back into the 30s giving me a few hundred dollar paper profit, then it's been downhill from there. A lot of small parcels later at various price points (including today at 14.5 cents; and I'm probably still in the bottom 10% of shareholders Average purchase price: 23.5 cents.

Obviously I'm keen on the thematic, resource size, location, how advanced it is with permitting, etc. I've read just about every message on these H.C. pages since late last year, and have quite a few folks on ignore -- including the obvious serial pest. What galls me is that his outrageous predictions of a sub-20 cent share price -- since the high 20s -- have been spot on. And had I listened to him, I could have avoided being 35% down on my investment. I don't know if he's an investment guru or his prediction has been luck and timing. I suspect the latter. I give him his dues in the short term but I firmly believe that supply / demand will inevitably win the day in the long run. It's more than a little annoying to see what feels like over-hyped lithium stocks being bid higher while graphite languishes. I guess everyone is a contrarian, long term investor until the price starts to fall and it doesn't seem like such fun any more!

Articles like this one, which highlights the need for graphite reinforces my belief that it's better to be a far too early in an investment, than a little late. I certainly have no intention of selling given our unique asset and predicted future demand.

https://aheadoftheherd.com/the-three-minerals-indispensable-to-decarbonization-richard-mills/



I can't see how the western world -- particularly Europe -- will continue to allow the use of synthetic graphite, which is produced from heating petroleum and capturing the carbon it gives off. Even north Asia car manufacturers will have to consider this issue as a lot of their cars are sold in the US and Europe. Just the thought of it, if you consider what's involved in making synthetic graphite for more than a few seconds, makes even the most ardent climate change sceptic uncomfortable.

I lived in China for many years and was there a week ago. Forget the Chinese supply chain issues, and our friendly jurisdiction, to have seen industrial scale pollution first hand in various cities in the P.RC., the mess created in north-east China from the production of synthetic graphite is nothing to be proud of. The Washington Post wrote a long feature article a few years ago which included confronting pictures of how dirty the cities involved in synthetic graphite production are (a good read; it's searchable on Google).

I can't see western supply chains continuing to accept China-sourced graphite when there is a similarly-priced alternative. Having ran in the 2014 Beijing Marathon with air quality PM 2.5 of around 500 and feeling pretty sick afterwards for a couple of days (2014 Beijing Marathon is worth a quick Google search too! Some people were running through Tiananmen Square in full scale gas mask-type contraptions) I don't need to be sceptical of net zero targets to be totally against pollution and its damage to the environment.

Anyway, I have two questions that I am hoping others will have an opinion on:

1. How much of the current share price weakness is RNU specific, and how much of it is industry related and to do with the current graphite price (shared by Talga, Syrah, etc. Maybe this is difficult to answer. We seem to have made a lot of progress this year, but each milestone announcement tends to result in a lower share price.

2. What are the chances of a de-facto dual market pricing system being set-up in the future, where commodities such as ours receive a premium for being Inflation Reduction Act compliant vs. Chinese synthetic graphite, which perhaps will be mostly used in Chinese batteries and vehicles as the west increasingly refuses to accept it? I am thinking of something like the WTI / Brent crude prices vs. the lower price Russia gets for its exports to India and China. Would Renascor product likely command a premium for being IRA compliant, non-Chinese sourced? Again, maybe hard to answer.

Thanks, and good luck to us all. I believe that in the long run we will prevail!