Hi guys,
Now that the restart of graphite production is imminent and a re-rate of the stock price is in the works, it is likely that the BSM story will attract some new investors. For those new to this story, here is my Top 10 reasons to invest in BSM:
1- Under tha radar small ASX microcap company on the verge of production, cash flow and profitability.
2- High growth graphite market with increasing prices pushed by battery and energy sectors demand of graphite (speherical graphite and expandable graphite).
3- High margin business, specializing in premium priced rarest in the market (competitive moat) large flakes graphite (1200$+ per tonne) with low operating costs in Madagascar (shallow oxidized clay deposit, low cost mining and processing, sub 400$ per tonne).
4- Established markets and international diversified customer base (USA, Europe, India), with a european off-take agreement (Possehl).
5- Extremely undervalued given low capex growth potential from stage1 (6000tpa) to stage2 (20.000tpa) and stage3 (value added expandable graphite).
6- Zero debt (low risk) and 100% owned (no royalties, no joint venture profit sharing) graphite mine and deposits.
7- Substantial Graphite exploration upside potential (expansion of resources at the highly prospective "Mahefedok" deposit, exploration of the yet unexplored "Mahela" & "Ambatofafana" deposits, and drilling the newly discovered "Andapa" deposit).
8- Secured long term landholder agreements and strong community engagement, ensuring long term support of the local community and aligning local community interests with those of the company and its shareholders.
9- High insider ownership of the company (Executives & Directors hold ~8% and Top 20 hold ~46%) aligning management and directors interests with those of shareholders.
10- High grade lithium exploration upside potential (Millies Reward lithium project with exceptional up to 7% lithium purity at surface samples). Fieldwork has already confirmed outcropping pegmatites with significant spodumene mineralization. Drilling expected to begin H2 2018.
Happy multi-bagger graphite and lithium investment to all !
