RNU charts are looking primed for run but held back I think due macro issues and where our company is in its cycle (not currently a producer). RNU fundamentals are in place to support that run when it happens, well financed, globally positioned to be a primary producer of PSG, good contacts (POSCO, US IRA et al), support from the Aus gov and located in a tier 1 jurisdiction.
Chart as I see it.
The previous run up to 360 in April 22 was halted by macro events and resulted in a 62% fall to 135 finally stopping in June 22. This still represented a 33% rise between December 21 and June 22. Since June RNU SP has recovered 120% to 290 again IMO stopped by macro events outside RNU's control that impacted the whole ASX.
Currently the SP has retraced to 50% FIB (run started early November) where we currently see good support at 290 and testing of the long-term support trend which coincidentally crossed the 50% FIB level yesterday. A good thing as the bears failed to drive through that support, this seems to cement 290 as the sweet sport ATM.
Shorts have increased since November but are at a marginal (not significant) quantity.
These shorts could be the driver attempting to bring the SP through the LT support, similarly, macro events could also be helping them.
If the LT support holds (290 for today) then my anticipation is that shorts will start easing off but continue to play a negative role until 330 where they'll start covering their positions. This, macro easing and further company developments will see the previous highs being tested (visualized by the SP working into a wedge trying to return to 360 levels).
Good luck to all and patience. We're involved with a well-managed company and a director that so far has moved ahead of macro events (this and previous raises that seems to beat macro timing) putting RNU finances in a very positive place.
A reminder from
@bombersmadd : 40 Compelling Reasons for investing in Renascor Resources (RNU)
1. World's 2nd largest Graphite deposit
2. Copper - binding agreement with Rio
3. Gold deposit at Soyuz
4. Three offtake MOUs for Renascor’s PSG including the recently negotiated one with Hanwa Co Ltd Japan
5. Working with Sydney-based battery anode company Sicona to jointly develop a next-generation lithium-ion battery anode material which combines silicon with graphite to significantly improve anode capacity and cell energy density
6. Low cost processing
7. World class supply chain
8. Eco friendly chemical purification to produce PSG
9. Govt support - Morrison 10 year manufacturing initiative
10. Govt support - qualified as a new mine and so royalties reduced from 3.5% to 2% until 2026
11. Financing - in discussions with Clean Energy Finance Corporation (“CEFCâ€) to secure financing for the construction of the first vertically integrated mine and purified spherical graphite operation outside of China
12. Financing - in-principle financing support from Export Finance Australia
13. Financing - in-principle financing support from Atradius, the export credit agency of the Dutch Government
14. Kaolin/Halloysite deposit at Ungarra
15. Rare Earths REE at Soyuz / Tumby Bay
16. Operates in Australia - a LOW RISK Sovereign Jurisdiction vs eg Tanzania or Ghana in Africa where other ASX listed graphite stocks operate. (Tanzania is marred by Child labour and there are a raft of issues that Aus Govt will have to look into before spending tax payers money supporting some of these companies) Refer to ASX:RSG in Ghana and ASX:IDA in Tanzania for horror stories of companies being stripped of their tenements by those Govts
17. Very experienced and astute management
18. Required documentation currently being prepared for Program for Environmental Protection and Rehabilitation (“PEPRâ€)
19. Recent flotation optimisation testwork shows improved graphite purities and recovery leading to improved productivity and even lower processing costs
20. Final Battery Anode Material Manufacturing Facility Site Selection Assessment has commenced
21. RNU is a member of the European Battery Alliance (EBA)
22. RNU has been accepted as a member of the European Raw Materials Alliance (ERMA)
23. Renascor Resources identified as a “Selected Australian critical minerals project†in the Australian Government’s Resources Technology and Critical Minerals Processing National Manufacturing Priority Road Map
24. Renascor is on track to become the world’s first integrated, in-country mine and Purified Spherical Graphite operation outside of China
25. Negotiation of Binding Offtake Agreements for existing MOUs is progressing well with preparation of bulk PSG samples underway
26. Above standard carbon purity of 99.8% while industry standard is 99.5 %
27. Company has been inundated with interest from prospective buyers of its PSG to the point where Stage 1 of the mine ( 28,000 tonnes per year ) has been fully subscribed
28. As a result of an increase in inbound enquiries from globally-recognised anode and battery companies for Siviour PSG, it is now considering an expanded stage one production capacity or an additional stage two PSG production capacity
29. The recent MOU with Hanwa gives the company exposure to the Japanese anode market (first 2 MOUs were with Chinese interests). Hanwa deals with some of the world’s largest metal and chemical producers and operates a dedicated Battery Team for the supply of graphite
30. Letters of Support secured from all levels of government and numerous community and regional groups. Community support is such a vital part of the whole process and it becomes difficult to operate in an environment without the support of these groups
31. Renascor is now looking to increase the production capacity for Stage 1 as a result of being inundated with enquiries from potential offtakers
32. Renascor to benefit from the $1.08 Billion Energy and Emissions Reduction Deal Signed by Commonwealth and South Australian Governments
33. Firm commitments received to raise $15 million, led by institutional investors in Australia and overseas - Siviour Battery Anode Material Project in South Australia is now fully funded up to the construction phase, targeted to commence in 2022
34. Renascor has commenced a bulk scale production program to provide additional quantities of Siviour Purified Spherical Graphite (“PSGâ€) to potential customers to support the progression to binding offtake agreements
35. Renascor has now been added to the MSCI Global Index
36. Renascor’s HF-Free Technology Achieves an amazing 99.99% Purity
37. Trials of Renascor’s eco-friendly purification process undertaken by consultancy group Dorfner ANZAPLAN have resulted in potential operational and environmental enhancements to Renascor’s planned PSG manufacturing facility
38. Results of independent locked cycle tests offer increased economic efficiencies in the production of Graphite Concentrates - graphite recovery of 94.5%, as compared to 91.0% in the Siviour DFS
39. The on-going pilot trials have achieved graphite purities of up to 97.5% total carbon (“TCâ€) with graphite recovery of 93.2% by adjusting regrind times in the flotation circuit
40. Renascor intends to leverage off the comparatively low OPEX of the planed Siviour Graphite Concentrate operation by co-locating a downstream advanced manufacturing facility in Australia to produce low-cost, high-quality, 100% Australian-made PSG with leading ESG credentials in the first integrated in-country mine and battery anode material operation outside of China
