near production

Announcement Valence Industries is on the cusp of production from its Uley Graphite mine in S.A. In Phase 1, VXL aims to process and sell 8,200T of graphite from existing stockpiles. Additionally, VXL aims to attract long term customers for offtake which will partly fund the modest capex requirements of $34m needed to increase production to the Phase 2 run rate of 50,000tpa. This will involve the construction of a new processing plant and open pit. Based on the expected average price of the Uley material ($US1,400/t) the project is expected to generate $40mpa in EBITA for 10 years. We are initiating coverage of VXL with a Speculative Buy rating and a target price of $0.65/sh...... woosh.... tick toc