VRC 0.00% 0.5¢ volt resources limited

Tanzanian elections and optics

  1. alh
    1,493 Posts.
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    IMHO,
    If Tanzanian deal was dead we would know about it by now.

    Think about this, a single bureaucrat has held up the funding, the President and his ministers are in full support, Volt has persevered with this deal for two potentially strong reasons,
    1. The optics for the Tanzanian president running up to the 2020 elections would be strong, especially after the debacle 18 months ago in their mining legislation changes.
    2. The optics for Volt would also be very strong which would shore up other major investors.

    TM would not be wasting this much time if he did not have support in the right places.
    My opinion is,
    1. The size of this deposit,
    2. The quality of the product,
    3, The future demand for the product,
    4. The looming Tanzanian elections and a government that will be wanting optics and to project a positive future image for Tanzanian mining, will see this project proceed to the first stage, and unlike the disastrous start for Syrah, Volt will work out its metrics and mining processes in the smaller first stage to setup the rampup to the 2nd stage where the real money is to be made, by this time extremely strong demand for quality flake will see Volt in a very strong position.

    If the funding gets approved through the Tanzanian channels, Volt may very well need a small cap raise to keep the back room operating until full first stage funding is available.
    I for one will be putting my hands up for any shares they issue in this scenario.
    All in my opinion of course, and obviously, still a speculative investment, but am still confident Volt will achieve its stated goal of being one of the top global graphite producers in the long term!
    ALH.

 
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