Triton moves to 100% ownership, page-70

Spent some time yesterday to draw up the following table comparing the resource size, grade and more importantly the $ market cap (based on yesterday's prices) per tonne of resource held.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8
0	Company	Resource location	Resource (mtonnes)	Resource grade	Contained graphite (mtonne)	Market cap ($m)	MC per tonne of graphite (domestic currency)	MC per tonne of graphite (AUD)
1	Alabama Graphite	USA	65.2	2.7%	1.77	13.8	$7.80	$7.76
2	Buxton resources	Australia	2.3	20.1%	0.46	20.0	$43.48	$43.48
3	Castle minerals	Australia	14.4	7.2%	1.04	3.0	$2.88	$2.88
4	Energizer resources	Madagascar	124.4	6.3%	7.88	32.9	$4.18	$4.47
5	Flinders resources	Sweden	2.8	10.7%	0.30	34.2	$113.97	$122.01
6	Focus Graphite	Canada	12.7	14.4%	1.83	52.1	$28.48	$30.49
7	Graphite One	USA	284.7	4.5%	12.76	18.0	$1.41	$1.40
8	Kibaran Resources	Tanzania	14.9	10.5%	1.56	38.0	$24.36	$24.36
9	Lamboo Resources	Australia	7.1	4.7%	0.34	102.0	$300.00	$300.00
10	Lincoln minerals	Australia	2.3	15.0%	0.34	16.0	$47.06	$47.06
11	Mason Graphite	Canada	61.9	15.9%	9.85	54.1	$5.49	$5.46
12	Northern graphite	Canada	93.8	1.7%	1.61	38.8	$24.11	$23.98
13	Ontario graphite	Canada	98.3	2.1%	2.04	n/a	n/a	n/a
14	Strategic graphite	Australia	6.6	8.7%	0.58	18.0	$31.03	$31.03
15	Stratmin Global	Madagascar	5.7	4.1%	0.23	7.8	$33.91	$62.21
16	Syrah Resources	Mozambique	1150.0	10.2%	117.30	895.0	$7.63	$7.63
17	Talga resources	Sweden	11.9	18.1%	2.17	49.0	$22.58	$22.58
18	Triton Minerals	Mozambique	103.0	5.5%	5.69	166.0	$29.17	$29.17
19	Valence Industries	Australia	6.5	7.1%	0.46	62.0	$134.78	$134.78
20	Zenyatta Ventures	Canada	45.2	3.1%	1.42	112.5	$79.21	$78.80
21
22	High							$300.00
23	Low							$1.40
24	Average							$51.56
25	Weighted average (by resource size)						$10.22
26

I know that the $MC per tonne of resource calculation for some of the companies above are a bit distorted purely because they are not pure graphite plays, but it should be enough to give an idea of where TON is placed (in comparative multiple terms) against competitors. As you can see, TON's market cap suggests that shareholders are paying approximately $30 per tonne of their graphite resource, compared with the industry weighted average of $10.22.

Compared with SYR (being obviously the most comparable company), their shareholders are paying around $7.6 per tonne of their graphite resource. This basically suggest to me that TON's current market cap has priced in the expectation that Nicanda will contain a minimum of 16mt of graphite, or approximately 160.7mt at an average 10% TGC bringing their total resource, including Cobra Plains, to ~264mt at an average grade of approx 8.3%.

Based on the assay results to date and, given the grade of their high grade zones and the expectation that TON has a resource size that rivals or exceeds SYR, this means that there is an enormous upside potential for TON's sp if Nicanda can return an additional >160mt or a lesser tonne but higher average grade than 10%, which is definitely not unrealistic.

And given TON is now fully funded, are aggressively proceeding with their drill program and management's acquisition of 100% of the project, I'm convinced that I will be in for the long haul.