Brilliant post
@srb123 ;
Setting the price is important but from a FA point of view even more important is the drastically low Capex and Opex....
Really excellent post - Thanks for coming back.
I find your logic sound and your insights very interesting. I did not realize how significant and important it is. Of course this is going to make a huge difference with water; not just desalinization.
This is the breakthrough: As expected, the issue of commercial exploitation license for the graphite project Pandeniya of First Graphite (WKN A2ABY7 / ASX FGR) just a formality. And upon receipt of this license First Graphite can now developing the wells from which the Sri Lanka typical, ultra-pure graphite is to be promoted, to finish. This means: In April First Graphite will produce the first graphite!
Because the company will now conclude on Pandeniya the installation of well casings and thus be able to start this month with the underground mining. It will first go up the tunnels and then take degradation and promoting high-grade graphite in attack.
And this is tantamount to obtaining salable material! Because with a graphite content of more than 90% (!) Is required no further processing of the ore more. The so-called DSO (Direct Shipping Ore) can be sold immediately ...
This First Graphite has completed the so immensely important step from explorer to producer in a remarkably short time. The company is thus one of the first "new arrivals" in the graphite market, which - similar to lithium - greatly benefited from the rapidly increasing demand for lithium-ion batteries.
First Graphite is now planning to sink in the next two years up to 20 wells from which the extremely high grade graphite transition can be promoted. The company itself has not published any forecasts, but analysts Far East Capital estimate that First Graphite could thus achieve an output of 5,000 tons of graphite per year. This, she believes Far East Capital, the company is expected to achieve an EBIT margin of 7.5 million AUD or EBIT of 3.8 cents per share (not diluted)! And of course last traded just 5-6 Australian cents ...
We believe that First Graphite is immediately before a revaluation. If once the promotion of extremely high-grade graphite transition actually running and the company announces first sales, at the latest, the stock should benefit our view.
However, this is of course just the beginning. Until sufficient wells are in operation in order to achieve the above object, passes as I said some time and risks always exist in the mining industry. But is First Graphite our view on the right track. Especially since the true potential of the company is expected to be ultimately in the production of graphs that can be revealed easily made from the material of First Graphite. (As Executive Director Peter Youd us in Interview
http://www.goldinvest.de/index.php/first-graphite-schlussendlich-wollen-wir-graphen-produzieren-33867 erläuterte.) And then quite different margins were again possible ...
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I have been meditating on things and I have been sharing my thoughts about forces beyond just the exciting news we expect to be coming. I think sometimes the scale of this change is not grasped by us. For example my narrow view about the effects of this on water. Just how many industries are going to be effected?
Are their Macro and Tech drivers in play that we are unaware of ?
Look at this old article; the Germans are working on Graphene as is the rest of the world. How many outside forces are in play here?
There have been so many outstanding posts on here like for instance Duke; I am interested how people are trying to bring in other types of Graphene/Graphite to compare with SL Vein. Once you answer the question about the difference I think that is the moment that the potential of this is grasped...
The management are playing it cool as usual but I think even they must be up late thinking about it.
Kind Regards
DYOR!!!
