cross promotion? I’m discussing two stocks that are in the same...

First 9991 Last

Share
Profile

Follow
IndexFund

980 Posts.

200

07/05/22

16:07

Post #: 61266597
Share

Originally posted by bombersmadd: ↑

That is a pretty poor attempt at a cross promotion their IndexFund !

You carry on over various paragraphs over Product Qualification Timelines & Securing Genuine Offtakes (Not Just MoU's), you then Utilise Blackrock (BKT) as your example that you have invested in for these reasons

Lets establish some basic facts about your current Arrangement with POSCO and your current finance position mate as you seem to be confused:
- It is a Non-Binding Term Sheet (Pretty much the equivalent of an MoU)
- You are now in the process of negotiating a binding offtake agreement (You don't have an offtake today)
- Your company is targeting "50-60% Traditional Debt" for your project in Tanzania. Meaning 40-50% will need to come via your own cash. You did a raise last week to take your cash balance to ~$30m. With a Stage 1 Capex of A$165m, means that your company will still need to find a further A$40m themselves on top of your 50-60% traditional debt

In terms of comparison between the two projects I am heavily invested in RNU as the vast majority of the product flake basket is suitable for further processing into PSG and gives RNU maximum exposure to the Lithium Ion Battery Sector which is where the growth for graphite is going to come from over the coming decade.

In comparison mate about 41% of your product basket is suitable for the Battery Sector. The larger 59% will likely never see the inside of a battery pack mate, with larger flake sizes forecasted by Benchmark Minerals to be in Over Supply in the 2nd half of this decade.

Not all graphite is equal, a number of African Graphite hopefuls are going to realise soon enough that if that the majority of your flake basket is not going to end up in a battery, you are not going to gain future price appreciation from EV / Battery Storage Demand.

Anyways mate all the best with converting that Non-Binding Term Sheet to a Binding Offtake over the coming months and good luck with obtaining that 50-60% Project Debt (RNU is in an enviable position thanks to the Australian Government ), you then have to make up the shortfall with Stage 1 Capex with a further raise before you are in a position to make FID given your current cash position of A$30m.

Expand

cross promotion? I’m discussing two stocks that are in the same industry. Stating both BKT and RNU as a buy…

you seem in love with RNU, hope it loves you the same way back.

good luck, not entering into an argument.

Thanks to You, RNU is a BIG SELL for me now, congratulations!

Last edited by IndexFund: 07/05/22

RNU Price at posting: 22.5¢ Sentiment: Buy Disclosure: Not Held
1 Upvote

0 Great analysis

Reply