Still something needed?

The technical people at MNS have earned our congratulations on their fine efforts in producing 99.99% coated spherical graphite.  It's a fine effort, and a great announcement.

But there is one other item of news today which suggests that more may be needed, if the business is to get established.

Tucked away in The Australian, is an article on a capital raising under way for Pilbara Resources, to mine its lithium deposit.  The key section says:


 

Lithium market darling Pilbara Minerals has pulled the trigger on one of the largest equity raisings from the resources sector in recent years, cashing in on the growing investor interest in lithium and its potential applications in the rapidly expanding electric vehicle market.

Pilbara entered a trading halt yesterday ahead of what The Australian understands is an $80 million raising at 38c a share.
It is believed to be the fifth-largest equity raising by an Australian-listed resources company since January last year, and confirms that significant amounts of speculative money remain available from institutional investors for companies with the right projects in the right commodities.
The Pilbara raising means three of the five biggest resources raisings since January last year are exposed to the lithium-ion battery thematic. Lithium producer Orocobre raised $85m earlier this year as it put the finishing touches on its new mine, while Syrah Resources, which sits on a huge graphite resource in Mozambique that it hopes will eventually supply the battery industry, secured $211m in fresh equity last year."

So how does this affect MNS?

Simple, really.  According to the Feasibility Study, MNS needs US$269m, which is currently just a tad under A$360m.  

As the article in The Australian shows, rather dramatically, that's over 40% more than the largest CR by an Australian resources company, since January last year.

Today's announcement will clearly help.  But is it enough to bridge the gap?  Is there still something more needed?

Cheers,

Prime1