graphite peer imbalance

Peer imbalance
Graphite producer Market cap

Stratmin Global.........£7.5m
Valence Industries.....A$29.3m ~ £14

Stratmin currently producing more at higher grade than Valence (90% C), which is valued nearly 2x more

Non-producing graphite companies, years away from production, not generating any cash

Australia

Kibaran Resources..A$33m - £15.5m

Western Mining Network..$38m - £16.5m

Talga Resources.......A$55m - £26m

Triton Minerals......A$96m - £46m

Magnis Resources...A$136m - £64m

Syrah Minerals......A$673m - £317m

Chris Berry, Graphite Mining Analyst:

The point of this note is not to pick winners or make companies look bad, but rather to point out some of the inexplicable dislocations in the graphite space.

How can STGR, a graphite producer, have the lowest market capitalization and enterprise value of its peers? Regardless of the industry, shouldn’t a company generating revenues be more valuable than one that isn’t?

A Graphite producer ought to have a higher valuation than aspiring entrants.
After all, the proverbial boxes have been ticked:

Permitting, sufficient infrastructure, customer base, real producing assets (as opposed to highly speculative land with evidence of graphite), revenue and operating cash flow.

The gap will close, just a matter of time.
It always does...

Production & Sales & Niche deal (Graphene?) News next

As always DYOR