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4.2¢ magnis energy technologies ltd

you need to provide evidence that the current basket price over...

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ddzx

37,911 Posts.

828

19/08/15

06:25

Post #: 15831098
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Originally posted by Zinzo ↑

With so many Graphite juniors competing here are 8 major reasons why MNS stands out as leader.

1) - JORC – Only 2% of total tenement.

MNS JORC has a mine life of over a 40 years @ 200,000tpa or over 30years @250,000tpa.

JORC 156 Mt at 5.2% graphitic carbon (Cg) at 3% Cg cut-off grade

JORC is only based on 2% area of our Tenement.

JORC based on shallow drilling. Most drill cores ended with graphite, indicating further graphite

Metallurgical results support the Nachu Graphite Project as being one of the largest deposits of Large and Jumbo flake graphite in the world

2) - High Super Jumbo Flakes Distribution with Exception Flake Thickness. (The largest graphite flakes in the world known to man)

68% Jumbo(+300 microns) or Super Jumbo(+500 microns) flake size

87% Large(+180 microns), Jumbo(+300 microns) or Super Jumbo(+500 microns)

2% TGC (Total Graphitic Carbon) from basic floatation

97% TGC (Total Graphitic Carbon) from basic flotation for Super Jumbo (+500 microns) and Jumbo flake product (+300microns)

97% recoveries

High demand for large flakes

Metallurgical results support the Nachu Graphite Project as being one of the largest deposits of Large and Jumbo flake graphite in the world.

MNS to take advantage of current world shortage of supply in large & jumbo flake.

This is what Frank Houllis had to say on the market demand for our Jumbo and Super Jumbo:
Many observers do have little understanding on the Nachu project and the graphite market.
Our graphite has exceptionally good crystal properties. Our Jumbo and Super Jumbo are cheaper substitutes for synthetic in high tech applications. Some end users are in the process of re-tooling to use our Jumbo and Super Jumbo in lieu of synthetic.They are highly sought after in the high-end market.

3) - MNS has 2 x Binding off take agreements. No other Graphite company has such large binding off take agreements.

10 years @ 100,000 tonnes per annum Binding Offtake Agreement signed with Sinosteel, Liaoning, with the option to extend for further 5 years

Current basket price over US$2,100 per tonne due to majority of Magnis product in Super Jumbo (+500 microns), Jumbo (+300 microns) and Large (+180 microns) categories

At current market price yearly revenues equate to over US$210m or over US$2.1b over 10 years

5 years @ 80,000 tonnes per annum Binding Off take Agreement signed with SINOMA

Yearly revenues for both binding off takes announced equate to over US$380m or US$1.9b over 5 years

4) - MNS has Finance approval subject to mining licence approval.

US$150M (A$196M) financing at commercially competitive rates with SINOMA.

5) – Binding Plant Construction Agreement with SINOMA

Covers the engineering, procurement, construction and financing (EPC+F) of a 200,000 tpa plant for the Nachu Graphite Project. Planning and preparation for building already commenced.

6) - Excellent PFS Results

NPV of US$1.04B with 84% IRR

Capital cost estimate of US$171.4 million

Operating cost estimate of US$448 per tonne

Basket price US$2,110 per tonne

Cash margin of over US$1,600 per tonne

Capital Payback of 1.4 years with low sensitivity to capital costs

7) – Mining licence due soon & Production to start late 2016.

8) - Potential Dividend of 36c a share once production starts.

Expand

you need to provide evidence that the current basket price over US$2,100 per tonne

the PFS that used US$2,100 per tonne was issued months ago

if the graphite doesn't sell for $2,100/t then the Potential Dividend won't be 36c a share once production starts.

apart from that, good post
Last edited by ddzx: 19/08/15

MNS Price at posting: 52.0¢ Sentiment: None Disclosure: Not Held
5 Upvote

0 Great analysis

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