more cash on hand

I find it quite pleasing to see the deals our MD Mr Muzzin keeps coming up with. His latest has released the co from a project that was stuck and unable to move forward and gives the co $925,000 to keep other projects moving ahead.

Perhaps now a joint venture partner for Uley graphite is not now needed!! The announcement of a JV for Uley is a little overdue as followers will know; the company has stated that several potential partners had shown interest, perhaps it has been difficult to broker an equitable deal, I'm sure Mr Muzzin is aware of the value and will not give up the asset cheaply.

How much value can we see Uley having?

Total low end JORC of 25M tonnes of 6-9% flake graphite.
Production facility in place and with some work can produce 14,000tonnes p/annum.
Market price of $1200/tonne, and rising.
Total market value of producable graphite around $15Billion

My view based on production only 14000t x $1000 x 0.5 (prod exp)= $7m to SER pa. So if we looked at P/E for the company and expect say 5 then SER should have a market cap of $35m....currently around $10m..!!

I look forward to the company producing and paying big dividends in the near future, but also feel concerned the co will be taken out too cheaply.

Definitely undervalued, 7c sp for graphite production alone and that is being conservative.

Takeover SP perhaps 15c!!?

Regards

Pixby

My views only, DYOR.