Folgen Sie uns auf:

FINANCE VIDEO: Graphex Mining Ltd - Metallurgical Test Work Significantly Enhances Flake Size & Drives Valuation Uplift

21.09.2017  |  ABN Newswire
Perth - Graphex Mining Ltd. (ASX:GPX) metallurgical test work significantly enhances flake size & drives valuation uplift.

Analyst Comment: Metallurgical test work by the Chinese syndicate of investors far exceeded our expectations, as results show 42% of the flake size is equal to or greater than super jumbo (price increases as flake size increases). The significant improvement in flake size has increased our average basket price from US$1,217/t to US$1,876/t (TSI assumption). This was despite keeping our flake graphite pricing assumptions largely unchanged.

We believe these strong metallurgical results also highlight why the Chinese syndicate of investors led by CN Docking, a subsidiary of CNBM (China National Building Materials) who are responsible for producing more than 50% of China's building materials, were so keen to move ahead with the transaction despite recent legislative changes in Tanzania.

Expandable graphite is a primary product in flame retardant building materials and as we previously highlighted, recent changes to Chinese building regulations have mandated the use of flame retardant building materials for all future constructions in China. We believe having guaranteed offtake from a project which is fast becoming one of the worlds leading expandable graphite projects, for their downstream building production, is in our opinion far more important than small changes to the project's ownership structure.

We look forward to the JV between Graphex and the Chinese syndicate becoming binding in the coming months, which should see a significant re-rating in the company's share price.

The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

Valuation: We have increased our valuation from $1.40 to $1.90 / share (share price $0.24). The major change in our valuation was updating our flake size distribution in-line with recent test work. And whilst we kept our flake graphite pricing assumptions largely unchanged, the significant improvement in coarse flake graphite material resulted in our basket price increasing from US$1,217/t to US$1,876/t.

Our valuation would have been higher however, we increased our discount rate to 16% (previously 12%) to account for country and JV completion risk. We will review our discount rate assumption once the JV becomes binding.

Finally, we acknowledge there is a significant disconnect between our valuation and Graphex's current share price. One of the major drivers for our valuation per share is the limited future dilution for Graphex shareholders (Future shares on issue - 86m shares vs. current 69m).

As our valuation assumes that the JV proceeds, once the JV partner contribute their equity contribution (US$15 - US$17m) as well as debt financing (JV partner to arrange from China), Graphex's contribution, therefore future capital raising requirement is minimal. Meaning that even minor changes to the projects NPV, can have a significant impact on a valuation per share basis.

To view the video, please visit:

About Graphex Mining Ltd:

Graphex Mining Ltd. (ASX:GPX) is an Australian exploration and development company, focused on advancing the world class Chilalo Graphite Project, located in south-east Tanzania. Chilalo is host to a high-grade mineral resource (with an Ore Reserve) and has demonstrated an ability to produce a premium graphite concentrate with a substantial portion of large and jumbo flake material. Chilalo graphite possesses outstanding expandability characteristics, making it ideally suited to the rapidly growing expandable graphite market.

About The Sophisticated Investor:

The Sophisticated Investor is a new equity investment tool which seeks to assist investors in becoming more informed in their investment decision making. We show and tell investors about a company in a series of short, informative videos. We possess specialist equity analyst skills and are complemented by video professionals. We conduct site visits and interview management, in a way most investors simply aren’t able to access. We promote long term value creation for investors by employing detailed financial analysis and intrinsic value calculations.

Source: Graphex Mining Ltd. / The Sophisticated Investor


Adam Kiley Director
TSI Capital Pty Ltd
M: +61 404 945 234

PDF Versenden Drucken

Für den Inhalt des Beitrages ist allein der Autor verantwortlich bzw. die aufgeführte Quelle. Bild- oder Filmrechte liegen beim Autor/Quelle bzw. bei der vom ihm benannten Quelle. Bei Übersetzungen können Fehler nicht ausgeschlossen werden. Der vertretene Standpunkt eines Autors spiegelt generell nicht die Meinung des Webseiten-Betreibers wieder. Mittels der Veröffentlichung will dieser lediglich ein pluralistisches Meinungsbild darstellen. Direkte oder indirekte Aussagen in einem Beitrag stellen keinerlei Aufforderung zum Kauf-/Verkauf von Wertpapieren dar. Wir wehren uns gegen jede Form von Hass, Diskriminierung und Verletzung der Menschenwürde. Beachten Sie bitte auch unsere AGB/Disclaimer!

Marvel Gold Ltd.
Alle Angaben ohne Gewähr! Copyright © by 1999-2023.
Die Reproduktion, Modifikation oder Verwendung der Inhalte ganz oder teilweise ohne schriftliche Genehmigung ist untersagt!

"Wir weisen Sie ausdrücklich auf unser virtuelles Hausrecht hin!"