Methodical Management, Great Resource, Incredible opportunity on ASX !

Hi guys,

So many things are happening with Bass Metals from a fundamental on the ground perspective : management is making steady progress refurbishing and expanding the plant, thanks for the  methodical and solid planification and execution. Nonetheless this steady progress and derisking of the project is not YET reflected in the stock price, which makes BSM at these ridiculously low price levels / market cap, one of the most if not the most indredible opportunity and greatest risk/reward investment ratio on ASX. Particularly the following points makes for a perfect storm graphite investment opportunity :

1- Bass Metals has a business Moat in the form of rare super jumbo flakes (35 Mesh+)

Large flakes Graphite prices keep increasing due to stronger environmental regulations in China, dwindling chinese large flakes reserves, and very little new supply if any coming on board worldwide. This will constitute a perfect moat for BSM, protecting its pricing power and customers base as one of the very few companies able to provide commercial quantities of 96%+ 35mesh+ (super jumbo flakes) graphite.

This is simply the best and rarest quality of flake graphite in planet earth and very few companies if any would be able to provide this same high standard becnhmark quality to the market.

2- Low risk / low Capex of refurbishing/expanding the plant.

Contrary to common belief, what BSM is trying to achieve with the expansion/refurbishment of graphmada plant, is nothing new or uncertain, it has already been achieved with the old plant (94%+ purity at 6000tpa throughput) however it has been achieved in an inconsistent manner (consitently only 3000tpa throughput at 90%+ purity has been achieved), due to the bottleneck of the old drying circuit and insufficient milling/flotation capacities coupled with less than stellar primary rod mill ore feed/preparation circuit.

By upgrading the drying circuit to 12.000tpa throughput, doubling the milling/flotation capacity of the plant and improving ore preparation and feed circuit, it is a no brainer that 6000tpa large flakes production at 94%+ purity will not only be achieved but also surpassed. Once the market awakens to this reality, the stock price will rise substantially by the end of 2017.

3- Low operating costs in Madagascar.

No analyst could overstate this huge advantage no matter how much he may try. While operating in Africa has its own set of challenges and drawbacks, the couterpart is the extremely low labor cost advantage. This allowed Bass to build its own workshop and develop in-house manufacturing capabilities and expertise to build flotation cells, and other necessary equipments for refurbishment and expansion, reducing both the capex and timelines recquirements. This in-house expertise will be more than helpful when BSM starts building the newer plant, which brings us to the next point.

4- Low capex / low risk of building another plant to achieve 20.000tpa+ capacity.

Once refurbishment and recommissioning of Graphmada plant is successfully achieved, building another nearby plant for the mahefedok deposit would be an incredibly low risk / low capex endeavour due to the experience previously acquired in refurbishing and expanding the graphmada mine.


Going by the stock price, I dont think many graphite investors on ASX do appreciate the importance of the previous points. IMO once the market awakens to the BSM opprtunity (most probably by th end of this year), there is no doubt in my mind the stock will be a mutli-bagger. How much of a multi-bagger ? 5x ? 10x ? 20x ? that is the question ! One thing for sure however : the stock price wont stay at these low prices much longer. Look out for the next announcement from the company regarding progress on the ground !

Happy graphite multi-bagger investment to all !