Speculation

This morning I was mulling over in my mind potential scenarios for how SER, VXL and Ionic may progress.  As I see it the following situation is current:

SER

1.  Have a listing on the ASX but are rapidly running out of money in the bank ($769k on 31/3) with a cash burn of about $170k/quarter (estimate now about $600k in bank now).  A CR will be necessary before 1/1/2017?
2.  Have assets in shares of
   

	Column 1	Column 2	Column 3	Column 4
0	Share	No.	Mkt value	value $
1	OBL	13,000,000	0.06	$780,000
2	MPE	20,000,000	0.02	$400,000
3	VXL	21,788,907,	nil	nil
4	Ionic	87,155,625	-0.07(est @ separation)	$6,100,894

This is a total of $$7,280,894 of which Ionic represents 84% of the value.   Both MPE and OBL are illiquid and on the "bread line" financially
3.  SER's market cap is $4.183m
4.  SER's tenements are almost worthless, particularly Mineral sands where the market is already over supplied.

Conclusion - almost all SER's value is in Ionic

VXL

Is for most practical purposes VXL is bankrupt and the sooner it goes to the liquidator the better.  This would allow SER (or LML - Lincoln Materials) to make a bid to the liquidator.  Jarek Kopias (company secretary and CFO) appears to be working for both LML and VXL as Company Secretary and CFO.

LML - their graphite mine (Kookaburra gully) is about 27 km from Uley

LML has today (28/6) raised $3.2m for:
- Detailed mine planning and preparation of the PEPR for Kookaburra Gully - this is estimated to take 12 months (Uley already has it);
- Undertaking detailed process flow sheet design and product testing both in Australia and China on graphite from Kookaburra Gully;
- Undertaking market evaluation of graphite products from Kookaburra Gully;
- Completing a detailed feasibility study for Kookaburra Gully;
- Ongoing exploration on the Company’s other exploration licences, with particular emphasis on graphite and copper; and
- Working capital

My reasoning was that Ionic is now trying to list on the ASX but are probably having some difficulty due to current and increasingly severe ASX listing rules (profit rule/NTA ($3m) rule etc).   It would appear that SER's main asset is Ionic.  Therefore it seemed the best strategy would be for Ionic to make a backdoor take over of SER and then for SER to change its name to Ionic.  That way Ionic would vecome ASX listed and the cross shareholding would become irrelevant.   If the new amalgamated SER/Ionic wish to they may be able to salvage some of the new SER's value by joining a bid with LML to the liquidator for VXL's assets.  LML could use the (improved) Uley plant to process graphite from both Kookaburra gully and Uley.  Ionic/SER would also have an end to end (i.e vertically integrated) graphite/graphene operation.   Still need a corner stone investor on board for Ionic/SER but it could all come together and SER worth something.