I look for growth and close by future income in this space. I don't like the Archer strategy of exploring across a wide sphere of commodities and then monetising their finds. It indicates to me that they are a company that enjoys finding stuff, but not producing stuff.
Now, if you want to believe their story that they are going to become a graphite producer then they have a lot of stuff to push uphill. For instance:
Mining licence
Scoping study
Metallurgy
Measured resource
Pre- Feasibility
Offtakes and/or JV commitments
Feasibility
Fund raising
Development
And, all for a resource that is going to produce 10k to 20k of product. That is niche, and with the amount of wannabes out there then that niche market is going to be red hot. If they are aiming for the ultra pure market then they are competing with the emerging Sri Lankan vein graphiters, plus Valence in OZ, and some Canadian companies finding hydrothermal deposits. IMO Archer won't have a hope in hell competing against those companies as they will have first to market advantage plus better quality and I expect, lower costs.
Furthermore, whilst I'm a strong believer in the nanotech revolution and the massive potential for graphene, but there are many years to go before that exciting development reaches any sort of sustainable commercial reality. At the moment, graphene is still only an exciting and futuristic story.
Archer might suit other investors' profiles, but not mine. Good luck to them anyway.
