On why BSM is the Most Attractive Graphite Investment opportunity on ASX

Hi guys, these are my TOP 5 reasons of why BSM is actually BY FAR the most attractive graphite investment opportunity on ASX :

1- Already producing and generating cash flow, with a high profile off-taker in North America (Asbury Carbon), and diverse customers in Europe and India with repeated sales orders.

2- Extremely High Margin Profitable Operations in Madagascar : one of the lowest operating costs per tonne of graphite in the world (soon sub 400$ per tonne, lower than the chinese graphite while higher quality) and most production (already 60%+ and soon 70%+ up to 90%+ of product) is premium priced (1500$+ per tonne) high purity (94%+) Large-Jumbo flakes.

The extremely low OPEX is due mainly to very cheap labor in Madagascar, high grades of graphite ore (5%+ increasing with depth to 8%-10%), At Surface Soft Clay Mining with minimal stripping ratio and no need for any expensive blast-drill unlike rock graphite deposits.

3- Realistic and Extremely Low CAPEX plans for expansion of operations (be it in the current Graphmada plant for 6000tpa up to 12.000tpa  or the new processing plant to be built for an additional 12.000tpa - 20.000tpa capacity)

4-Already Cashed up with 7M$ cash, more than enough working capital and investment capital with already initiated on-going work for refurbishment-improvement-expansion of the current Graphmada plant, and near term plans for exploration (drilling this october to substantially increase the resource estimate) and economic studies (in 2017) to build a new processing plant to be operational by 2018.  

5- Extremely low undervalued market cap compared to peers and to blue sky potential. Sub 20M$ market cap, while non producing  peers (Magnis, Syrah) already enjoying 400M$ and 1.2billion$ market caps respectively. On this particular point,  here is an interesting quote by expert authors on industrial minerals, Chris Berry, and Jonathan Lee :

"a 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. These “boxes” offer greater certainty on future cash flows for which one can derive a valuation for the company. In the graphite space, much like other businesses, we believe there is significant value in the distribution network, and knowledge of customers’ needs. Additionally, the more de-risked a company is and the less potential future dilution, the higher the market cap ought to be, at least in theory."

http://rockstone-research.com/index...onfronting-dislocation-in-the-graphite-market

Clearly if management succeeds in refurbishing the Graphmada plant and rapidly expanding production (IMO they will succeed, most of the important engineering work has already been done by the predecessor owners of the plant Stratmin), BASS is a multi-bagger in the making stock, not even talking about the new processing plant to be built and the blue sky potential of future plans for spherical graphite and other value added graphite products.
My personal target : 10c+ by 2017.

Happy graphite investing to all,