I'd bet VLX, KNL, and WMN are the three ASX listed producers of graphite a year from now. The largest markets for graphite outside of China are Korea, Japan and Taiwan. Companies that are producing more than 30,000 tons will have a hard time selling all of that graphite in the coming year. WMN which I hold, is shooting for 12,000 tons annual production in Indonesia. Compare that with SYR shooting for 220,000 tons of production in Africa. That plan may make more sense in 5 years time, but certainly not in today's market. Last I checked, its a damn long way from Mozambique to Asia where the downstream industry exists. VLX has a much better location than SYR to serve Asian customers and it's right here in OZ!
I agree KNL's market cap being so low gives it a good position for entry, but I'm still doing my due diligence.
DYOR
KNL Price at posting:
15.0¢ Sentiment: None Disclosure: Not Held
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