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If it holds above the 1-year EMA, I'm buying.

It didn't; therefore I haven't.

Volume is still low and it seems that the entire graphite sector is in wait'n'see holding pattern. Potential over-supply?

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  • 2 months later...

Yes does read well! Just a little bit longer and then the market will realise the true potential of this one imo! :biggrin:

 

Managing Director, Mark Thompson said, ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The drilling at RaitajÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¤rvi to date confirms our interpretation that

the graphite mineralised zones are much larger than previously thought. I thank our staff and contractors for

the timely and safe execution of the drilling program to date and ongoing support from local stakeholders in

our third drilling program in northern Sweden since July 2012. We are confident that the value of the drilling

will be ultimately realised in a revised resource and preliminary economic model in the near term.

In addition, we look forward to exploring the ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¹Ãƒƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“jumbo flakeÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢ project at PiteÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ¥. Such large flake size is a relatively

rare commodity in Europe that imports 95% of its natural graphite from distant countries. With the PiteÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ¥

project we will gain a valuable size component to our graphite inventory thereby maximising our market

opportunities, and taking advantage of our Swedish location which was recently voted No.2 in the world by

the 2012-13 Fraser Institute study on mining investment jurisdictions.ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ

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  • 2 weeks later...

From the latest report and really to obtain a true picture it needs to be read in it's entirety.

SYR figure is obviously quite different now and is imo worth considering also! :biggrin:

 

Although these various projects are at different stages of development, comparing

the various measured and indicated resources owned by the different companies, at

the same 10% Cg cut-off, is an interesting exercise.

We have followed Canadian standards whereby inferred resources cannot be added

to measured & indicated and have chosen to focus only on measured & indicated

resources.

Talga Resources has a current enterprise value (market capitalisation less cash) of

$8.9m and has a compliant indicated resource containing 1.38 Mt of graphite. Hence,

it is valued at $6.40 per tonne (/t) of contained graphite.

Focus Graphite has an enterprise value of $50.2m and has an indicated resource 0.77

Mt of graphite. It is valued at $65.20/t of contained graphite.

Mason Graphite has an enterprise value of $38.8m and has a measured and

indicated resource of 1.34 Mt of contained graphite. It is valued at $28.90/t of

contained graphite.

Company Deposit Measured Graphite Graphite Indicated Graphite Graphite Market Net Enterprise EV/Graphite

Million Grade Million Million Grade Million Capitalisation Cash Value (EV) Tonnes

Tonnes % Tonnes Tonnes % Tonnes US$m US$m US$m $/t

Talga Resources Nunasavaara 5.6 24.6 1.38 10.6 1.7 8.9 6.4

Focus Graphite Lac Knife 4.53 17.09 0.77 70 19.8 50.2 65.2

Mason Graphite Lac Gueret 0.267 26.68 0.071 4.62 27.45 1.27 45 6.2 38.8 28.9

Flinders Resources Kringel 1.6 11.7 0.187 32 16.5 15.5 82.9

Flinders Resources has an enterprise value of $15.5m and a combined measured and

indicated resource that contains 0.187 Mt of graphite. Hence it is valued by the

market at $82.90/t of contained graphite.

It is not possible to repeat this exercise with Stratmin Global Resources as they do

not provide a resource estimate at a 10% graphite cut-off grade. Their enterprise

value is around $45m and using a 2% Cg cut-off, they are valued at over $2,000/t of

contained graphite.

It is also not possible to repeat the exercise with Archer Exploration, as they do not

provide a resource estimate at a 10% graphite cut-off grade. Their enterprise value is

around $6.9m and using a 2% Cg cut-off, they are valued at around $36.75/t of

contained graphite.

It is also not possible to repeat this exercise with Syrah Resources. In spite of its size,

the Balama inferred resource is only estimated to a 5% cut off. Their enterprise value

is around $425m and using inferred resources and a 5% Cg cut off they are valued at

$7.70 per tonne of contained graphite.

Thus, ignoring any contained graphite in the inferred category, which is significant for

Talga and others, Talga Resources is currently valued by the market at between a

fifth and a tenth of comparable graphite companies with measured and indicated

resources estimated at a 10% Cg cut-off grade and are clearly undervalued.

Put another way Talga is being valued slightly less for indicated resources in Sweden

than the market is valuing Syrah ResourcesÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢ mega inferred graphite resources in

Mozambique.

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  • 4 weeks later...

Interesting in the free version of the Bull two persons had SYR as a sell. What was very interesting was the comments of one! :biggrin:

 

"Someone forgot to tell Syrah shareholders the boom is over. This amazing high flying graphite stock, with exploration licences in Mozambique, seems to be defying gravity with a market capitalisation around $242 million. ThereÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s no world shortage of graphite. If you are actually chasing a serious, advanced graphite company, we see better value in Talga Resources or Triton Minerals, both with a market capitalisation of about $11 million. Common sense will tell you what to do, but, in our view, the Syrah share price is looking vulnerable at these dizzy heights. The shares were trading at $1.76 on May 1. "

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from the update: Ongoing news flow anticipated including drilling results and resource upgrade at RaitajÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¤rvi, resource upgrade at Masugnsbyn and scoping study on Nunasvaara to underpin economic valuation in Q2

(the SPP is underwritten; and the Boardroom Radio broadcast a few weeks back hinted the SP should really be around 50c - not that this is anything but 'potential').

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  • 5 months later...

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