Graphex -listened to a new presentation today. The new Graphex is hot, and we will see this on the 20th or 21st of July when the stock should relist, once the AGM has voted on the restructuring. Graphex will become a gold explorer in Mali, with a graphite asset in Tanzania, which is to be sold and will hopefully return a little bit of cash to Graphex! The company will be renamed Marvel Gold…In Southern Mali, close to Ivory Coast, and close to some major mines ( but probably not in trucking distance ) the Tabakorole gold asset has a resource of 600.000 oz, back from 2007. There has been quite a bit of drilling since then, which will probably increase the grade as well as the tonnage - but some of the older resources ( done at a very low 0,2g cut-off ) might also go missing. Overall, probably an unchanged resource. the company has already done some drilling and will try to do some more during the forthcoming wet season ( should be over by September ), to show continuity of the resource ( some good intersections of lower grade like 0,8g gold have already been made) and extensions. The target here is to bring the resource above 1-1.2 mill ounces, to eventually prove a mineable and financeable project.
The other asset is close to Sadiola, a major mine, which has just been sold, with a very large and hungry plant - called Lakanfla. This is the asset quite a few geologists are excited about. While some old drilling results have been made like 26m with 5g / 18m with 4,3 g - this asset is at a much earlier stage - but it might well turn out to be the larger prospect. But a lot of work remains to be done here to prove Graphex´s concept.
Resources of comparable companies are valued in many cases at 50-100 A$ / oz - if we apply this, we would end up at 30-60 Mill A$ in market cap. I find this upper limit here very rich - in the end, the existing resource at Tabakarole has no plant in trucking distance and will probably have to go it alone. But I could initially well imagine seeing a market cop of 30 mills A$ for Graphex! Once the stock comes back to the market, it will trade cum entitlement to the planned 1:1 rights issue at 2ct - so anybody who does not want to be involved in gold exploration will have a good chance to sell his stock at probably much higher prices than the last traded price of 3,8t. Once all capital raisings have been bedded down, we will have 413 mill shares outstanding. If you use what I think is a conservative target in this market of 30 mill A$ market cap, the stock could well trade up to 6—7-8-9ct. This answers the questions, whether you should take up your rights at 2ct! But wait until you will be notified by your bank or the register in late July…
Hopefully, Graphex will be able to make us quite a bit of the lost money back over the next few months!As I am finishing just before 6 am, gold is trying to hold the 1800-level…
Have a nice evening
WS Schröder Equities GmbH Seitzstr.7a 80538 München
MVL Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
