I would like to start by saying what great posts there have been recently and I applaude you all- We are all in this together so we should all work together and stay with our gameplan and strategies and we will all do well out of this
Last night i did more research on VRC and their project - it was interesting comparing their neighbour MNS and MNS former Founder Stephen Hunt who has since left and now heads up our company VRC
Stephen has achieved phenomenal results with MNS and stated he just couldn't pass up the opportunity to get on board VRC and get it to where MNS is today - he also acknowledges that VRC have Tanzania's largest graphite deposit ( larger than MNS) and appears to have some big contacts in the graphene space which will most likely pay big benefits over time.
A CRITICAL ELEMENT TO ADDRESS IS FLAKE SIZE - (PRICE DIFFERENTIALS) -
Huge price differentials (and forecast to grow) between high and low value product concentrates
― 98-99% purity / +150 micron product versus 94-97% purity / sub-150 micron concentrate
The more in jumbo and super jumbo the higher IRR and revenue/EBIT we can achieve VRC have slightly higher jumbo/super jumbo than MNS not to mention a bigger shallow resource
Note: these comments are not to criticise MNS but to compare as I believe MNS have a great management team also and will continue to show the market the TANZANIAN STORY and therefore shine the spotlight on Volt resources (VRC)
Not only do we have the largest graphite deposit but, It’s shallow in that all drill holes went to a depth of less than 100m – translating to cheaper production costs down the line
What has been stated from Stephen is that he believes we are approx. 18 months behind MNS progress. however bearing in mind we are attempting to fast track Volt's graphite projects into production - I took a further look at these projects to ascertain which company could generate better returns for shareholders - so if we got to MNS stage with off take agreements ( lifeblood of any graphite miner) then we could potentially be at somewhere between 50- 80c share in 18 months -
Thats a whopping 700% to 1000% on todays current price. Before you all get too excited this required further thought, however the close we get to production the more we de-risk the project iMO and the result would be a higher share price as the wider investment community get interested - I personally think that the first wave of "serious" or "smart" money or" big end of town" however you want to say it wont be too far away now and PFS will probably be the first catalyst so its best to get in now only if you like the story.
- the KEY for all of us is if we do the homework on VRC now we make better returns for getting in at ground level so to speak - :
Basic comparison with MNS
MNS
ASX share price (15 July 2016) A$0.97
12 month share price range A$0.22 – 1.12
Pro forma shares on issue 430.5 million
Pro forma market capitalisation A$418M
Options ($0.095ps strike) 116 million Options (various strike) 16.6 million
Cash A$7.0M
Debt A$0.0M
Broader resource = 174mt at 5.4% TGC for 9.3mt contained
graphite
Over 40% of Nachu product in high value Super Jumbo (+500 microns) and Jumbo (+300 microns) flake sizes
Located west of the coastal city of Lindi and ~200km by road from port city of Mtwara in south east Tanzania
One of the most advanced graphite projects of scale globally
BFS completed
ESIA completed in accordance with Equator Principles guidelines
Power solution
Port access
All requisite environmental and mining permits secured
― Special Mining Licence (SML) granted to Nachu by the
- Ministry of Energy and Minerals of Tanzania
- Average 220ktpa graphite concentrate produced over an initial reserve-backed 15 year mine life
VRC
ASX share price A$0.077
12 month share price range A$0.02 – 14.5
Pro forma shares on issue 913.8 million
Pro forma market capitalisation A$69M
Options 327M
Cash A$7.7M (30 jUNE 2016)
Debt A$0.0M
Broader resource = 214 mt at 5.4% TGC for 10.3mt contained
graphite/
-Substantial maiden total JORC compliant resource: indicated 62.6Mt @ 5.1% TGC and inferred 151.8Mt @ 5.1%* *VRC delivering with leading super jumbo flake distribution among East African peers/
*VRC has >81%** in super jumbo, jumbo and large flake size categories; this is what the battery sector wants and will pay top dollar to lock in supply
*Very shallow resource (<100m); low cost deposit to explore and mine
-Recent graphite concentrate results from Namangale returned grades: “...up to 99.3% TGC with +500 micron flake**”
- No industrial chemicals were used; just crushing and flotation process Delivers VRC material comparative cost advantage relative to peers with deleterious elements in their product
- Over 80% of graphite product in high value Super Jumbo (+500 microns) and Jumbo (+300 microns) flake sizes significant and higher than MNS
Off-take MOUs for 100,000 tpa locked in with leading Chinese end-users**, while discussions with potential western off-take partners are gaining traction
Located ~140km by road from port city of Mtwara in south east Tanzania (closer than MNS which is over 200kms)
One of the largest graphite projects of scale globally
Awaiting PFS due 4th quarter 16 if not sooner
Disclaimer: apologies if some of the information is slightly outdated but most is within the last 6 months
(20min delay)