OUR VIEW We view Valence Industries (VXL) as timeously positioned in the graphite market and the only current producer in Australia. Transitioning from developer into producer, with the plant in South Australia currently in commissioning and ramp-up, and with signifi cant mine development and further plant expansion ahead, VXL has ample growth opportunities but does hold further development risk. We view the relatively short mine life as a limiting factor, but recognise the potential mine life extensions within the existing approved mining lease and broader tenement package. With fi rst product shipments, and the debt funding solution for expansion imminent, we rate VXL a Buy with a price target of $0.62/sh.
