I posted the same on the 6/12/24 The reason for the drop in SP is the lack of confidence in RNU being able to deliver in the short term because China has cut Graphite prices so low that no firm outside of China can compete.If non China producers were given the same subsidies then that would be a different story.RNU is lucky the board produced a gem of a decision to do the capital raise at 27c That means we have over $100mill in the bank and therefore have been able to proceed with all the behind the scenes work that will allow us to go to production as soon as a recovery in non China graphite prices happens.We can hang on for years if need be.Lets hope that won’t be necessary.I will follow with interest the US ruling.
If this ruling and US tariffs on China prove positive then the game may change for RNU.Add to this Federal Government tax incentives for Critical Mineral .Since the end of last year I have been selling down my holding to the point that I am now happy with my still sizeable investment in RNU.I have a lot of cash on the sidelines to go back in heavy again should we see graphite prices start to recover.
In regards to DC and the board I believe they have done a terrific job to get the company to this stage.I remember DC saying last year that whist the graphite price is low when it turns it will turn quickly Being one of the likely lowest cost producers once up and running we will surely be at the forefront of the offtake discussions with battery makers and EV manufacturers.I remain committed.
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