The stock is not a dog, it's not a producer either. It has no binding offtakes so it cannot produce. It has no binding offtakes because It will not accept a contract at low prices. It won't accept low prices because demand will beat supply (eventually), and a more favourable price will be available. Until demand beats supply, RNU and interested parties wait. It has MOUs with Mitsubishi (2023), POSCO (2022) and Minguan (2021). These are not insignificant.
I've held for some time now, I still believe in this graphite stock's potential.
"The latest Outlook features a first-of-its-kind risk assessment for selected energy transition minerals, scrutinising four key dimensions: supply risks, geopolitical risks, barriers to responding to supply disruptions, and exposure to environmental, social and governance (ESG) and climate risks. Lithium and copper are the most vulnerable to supply and volume risks, while graphite, cobalt, rare earths and nickel face more substantial geopolitical risks. For graphite in particular, today's project pipeline indicates that the available supply outside of the dominant player meets only 10% of the requirements in 2030, making announced diversification goals highly challenging to achieve. Most minerals are exposed to high environmental risks."
