Short MNS - Paragon Fund Managers

Miners remain fertile ground for ideas for John Deniz and Nick Reddaway of Paragon. Their long idea is Kidman Resources (KDR), owner of the "the biggest and best undeveloped hard-rock lithium resource globally" in what they believe is a "multi-year lithium bull market".
"Kidman has a low capex, existing plant and infrastructure solution. This means an easily funded and shorter timeline to production path, beating many of its development peers including Pilbara Resources to market."

Graphite interest Magnis Resources (MNS) is their short prospect. Magnis has a graphite project, called Nachu, in Tanzania, whose feasibility study is based on a 5 million tonnes per year processing plant - "that's a huge earth-moving proposition in East Africa" - for graphite production of 240,000 tonnes per annum coming online in a market they think will be oversupplied. "Despite global production falling by 40 per cent since 2012, and increasing demand, natural graphite prices have fallen by over 50 per cent," the fund managers point out. Nachu "remains unfunded, requiring capex of around $375 million and with its single off-take agreement still non-binding amid a very challenging environment".


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