I think it is so oversold right now it is setting one for the record books.
It is all good; I think MR Grigor is right over the Target referring to the next re-rate just like Talga only the difference being this one is worth multiples of TALGA in my opinion and if you contact some geologists they can fill you in just why SL Vein is so special.
I think the Graphite is there... In fact I think the great finds of this century are yet to come.
There are so many High Cards right now ready to be played....
I think the question about the market factoring things in is not right. I think the question is how long will the generally ignorant and irrational market remain so?
Imagine IM and FEC and MR Grigor all are good but above all I think the Management has been outstanding the last few years. Instead of fluff Marketing and constant stories to puff themselves up they have been doing the work and that is manifested in growing their ASSETS !!!
Value will out in my opinion; the real limit being on the material itself...
The Management has done great. Still I do wonder how good CRAIG is with pomp and pageantry - He would not be changing the name and doing marketing unless he felt it was really really really justified.
How many High Cards are stacked right now?
I think in all these wonderful posts allot of Data Points are not mentioned that weigh in on the Analysis...
I make the assertion that the Price tells us little because the Market is Illogical !!!
How many High Cards do you see in just this 1 Article?
MRL Corporation - The first new graphite producer in 2016?
At the latest after the electric car manufacturer Tesla Motors announced to build a so-called "Gigabatteriefabrik" which is to establish by 2020 lithium-ion batteries with a capacity of 35 gigawatt hours (GWh) per year, pushed the topic of graphite into the focus of commodity investors worldwide ,Because graphite is one of the most important components of these batteries and should thus benefit greatly from the expected, significant increase in demand in particular in the field of electric mobility as a whole.
High purity graphite from Srik Lanka; Photo: MRL Corporation
The wish to numerous mining Juniors who is currently working to bring a graphite mine to production. A little known in this country, small but fine company from Australia called MRL Corporation (WKN A1T7RQ / ASX MRF) could win the race to the first new graphite mine outside China.
And MRL has a distinct advantage over many other candidates in the graphite market. Because MRL has been active in Sri Lanka. And it is there that the extremely high grade Graphiterzadern, for which the country is known.
Extremely highly in this case means levels between 90 and 99% total carbon graphite, while the average contents are world only at 10 to 20%. 50% of all graphite mines even promote with less than 6%! This means MRL needs to invest in contrast to its competitors not millions of dollars in a treatment plant.
When the Graphiterz is fetched from the floor, drops most, a sorting of the material, which can initially be carried out at low cost by hand. Only at a later increase in production is expected to a mechanized process are necessary. This is an enormous cost advantage over other graphite producers who need to concentrate while MRL so-called DSO (Direct Shipping Ore) - ie material that can be delivered almost without further purification - produced.
In addition, the ultra-pure graphite from Sri Lanka is extremely popular with the end customer. In recent years, a significant premium for DSO material was paid from Sri Lanka compared to the spread of flake graphite.
And MRL will - also in contrast to most potential graphite producer - go into production at the beginning of next year.
One wants to take up to 20 wells in operation in order to gain access to the Graphiterzadern Over a period of 18 to 24 months on the first Aluketiya project, which already has a mining license, and the Warakopola project.
There MRL has already been proven with drilling levels of up to 99.2 and 99.3% total carbon graphite. Here, the focus is on old wells that have been abandoned due to lack of capital and insufficient ventilation and water control and takes these with conventional but modern methods into operation again.
Analysts at Far East Capital go in a base case scenario assumes that MRL could achieve an output of 5,000 tons of graphite per year with 20 producing wells. Thus, believes Far East Capital, the company could achieve an EBIT margin of 7.5 million AUD and an EBIT of 3.8 cents per share (not diluted). With a market capitalization of not watered down just 12.8 million AUD ...
The costs for the startup of a well lie loud MRL at around $ 150,000 and the company has already selected 12 wells that you want 2015 and 2016 full production. According MRL the break-even should be achieved in 11 producing wells.
Until then, MRL is well funded because you could take $ 4 million in fresh capital recently. It is still pending a final approval, then MRLs can this year (December) go ahead and take the first slot on the Alukatyia project into operation. The first ore could consequently be then conveyed in January 2016th
So far so excellent. But there is still quite significant in MRL upside potential over said far beyond. Because the ultrahochgradige graphite material the company is according to a study from the University of Adelaide outstandingly suitable for producing the "miracle material" graphene. Graphene conducts data better than silicon, heat better than copper and is also tensile strength than steel and at the same time only one molecule thick.
As the analysts of Far East Capital cite as an example, can be produced at the graph of a given quantity of graphite graphite MRLs projects 50 to 80%, while, for example, only 2 to 10% would be at Talga Resources (WKN A1C0Q2). This therefore means MRL needs to graphene production use than its competitors significantly less graphite and so has a considerable cost advantage.
The market for graphene applications is still relatively small - although it strong growth is predicted - and could be a glut of new material not currently afford. Therefore Far East Capital has designed a second production scenario for MRL, it is considered in the of an output of 4,000 tons of graphite, and "only" 500 tons of graphs per year (50% "loss" in the preparation).
Thus, the profitability of the operated by MRL shafts would rise explosively Analysts. Because in this case goes Far East Capital from an EBIT margin of 33.4 million AUD and an EBIT of 17 cents per diluted share is not!
Although MRL Corp. will remain a small producer compared: Given the still low market capitalization and the excellent outlook, risk-conscious investors here provides an excellent opportunity for a relatively cheap price and time - shortly before the start of production - at a very promising company enter.
The ultrahochgradige graphite material that wins MRL makes production on the one hand extremely cost - in terms of both OPEX and CAPEX - and scored on the other premium prices. Moreover, it is ideally suited for the production of graphene, which again opens up additional potential for companies and equity.
So if the considerable risk associated with the investment in a junior mining exploration company - especially MRL no formal resource identifies, but relies on the information produced by drilling and by historical data - is not afraid, is likely to be found in MRL a very interesting investment opportunity , The management is incidentally involved with about 10% of the company and benefited so much from the company's own success.
Facts; Deductions and Competence all weigh in here in my opinion...
I like this article because it uses Facts and Logical Deductions and has a real and competant look at MRL Corporation right now. No hype just reporting....
What do you think?
What Data Points do you think is Significant in the above article?
Who is looking forwards to Production?
Who is looking forwards to the Graphene Production Plant?
Who is looking Forwards to London?
Who is looking forwards to First License given out in Decades?
Who is looking Forwards to the name Change?
Who is looking forwards to Customers?
Who is looking forwards to more exploration?
In my opinion MRL Corporation is far superior in every way that matters to TALGA. I especially love the drastically Low CAPEX and OPEX. The importance of this cannot be overstated in my opinion.
Kind Regards
DYOR !!!
To err is Human!!!
MRF Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
HotCopper & The Market Online will be live From the Floor at the Mining News Select Conference and we want to bring the voice of our online audience to the show with us.
