" They did mention a small initial 300K tonne production of graphene oxide totalling $30million in revenue. Thats alot of money for such a small off-take."
I have no doubt, BBR will be a graphene producer.
I found the Veritas reports interesting, using BBR valuation with a conceptual production of Matale project, a 10 year LOM of 100Kt @ high grade +90% C.
I suppose their projection (cash cost, potential Capex, etc..) are taken more or less from KKGM operations mine...
IMO, BBR represents a low risk profile, with a low Capex, only $25 M for coated spherical graphite production, fetching a sale price of A$15,000/t
The cash cost is around $500 to $600/t
The projection gave BBR a net NPV of A$258M (A$4.51 per share fully diluted).
Some keys points I can see for BBR:
- a low market capitalisation
- product of high qualty
- BBR will benefit a 12 year tax break (Matale project)
- cheap local labor
- high margin around $1000/t
- experienced teams
- placement to strategic global fund manager
- value adding of lump graphite to coated spherical graphite and/or graphene production
where :
* coated spherical graphite is used in making of lithium ion batteries ( US$20,000/t )
* graphene ( sale of up to $100,000/t )
- potential producer of graphene
- Queens Graphite Mine will add value to SP
BBR Price at posting:
67.0¢ Sentiment: Buy Disclosure: Not Held
