General Discussions, page-78

Good analysis @Dankarks. Thanks for sharing your views.

Purely for a comparable valuation purpose, one stock I would like to compare RNU to is ADN (only based on published PFS economics as there are other factors distinctively relevant to each of these companies). They both have done PFS and have the respective resources in SA.

ADN
Great White Kaolin project (ADN owns 75%) is probably the world’s largest known high-purity halloysite-kaolin resource with an after-tax NPV of A$511m @8% discount rate. LOM EBITA A$2,058m. On 17 March 21, ADN MC reached an all-time high of A$900m + (based on closing SP of 43c and excluding options).

ADN current MC of appr: to A$500m is close to their project after-tax NPV of A$511m.

RNU
Siviour project (RNU owns 100%) has the second-largest Graphite RESERVE (proven). PFS after-tax NPV is A$713m @10% discount rate. LOM EBITDA is A$6,210m. On 23 and 25 Mar 21, RNU MC reached an all-time high of A$269m + (based on closing SP of 16c and excluding options).

RNU current market cap of appr: A$150m is significantly below its project after-tax NPV of A$713m.

IMHO few positive SP catalysts in the next few months are;

- improved economics on the back of increased PSG production
- bulk sampling to existing MOU customers and any other news re progress on the relationships
- any news re new MOUs (hopefully EU customer)
- progress on SA Govt support
- progress update on the overall project
- further drilling to increase the proven RESERVE
- any progress on project financing possibilities

I hope the SP downside from here is limited barring any driven by further profit taking/trading.

While it is wrong to expect an increase in the RNU SP because another resource stock has a relatively higher MC, RNU has a near term potential to get back to A$300m + MC when we get further news. This equates to a SP of 15c+.

Current SP of below 9c offers great buying opportunity to those with a medium to LT view.

Please DYOR before investing your hard earned money.

GLTAH,

PC