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AXE - ARCHER MATERIALS LIMITED


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This rubbish posted by Aksier on the other forum:

 

Campoona Graphite Plant Parameters for DCF Modelling

Capital Expenditure $60m

Concentrate Produced 40,000 tonnes per annum

Project Life 15 years

Revenue $1,500/tonne

Head Grade 12.0% carbon

Recovery 90%

Mining and Processing $50/tonne

Transportation $15/tonne

Marketing 2.5% of Revenue

 

Well, at least he has revised his graphite price down from $30,000/t to $1,500/t. LOL

Cap ex $60M??? On what planet? This is Australia, not Africa.

Mining and processing $50/tonne?????? Again, this is Australia buddy not Africa. What about the huge strip ratio with such a narrow ore body? How much wastage removal to develop an open pit with such narrow graphite intersections?

$1500/tonne revenue for fine amorphorous graphite? Slash that to $600/t and it will cost them more than that to dig up and process. Then how are you going to compete with the Chinese in the low quality end of the market? Who are your potential customers? This is not a spot market. If you haven't got a low cost, high quality flake product, forget it. Wont happen. Good luck with Archer though.

 

There you go, just a few reasons why the project is crap and why the market gives it little or no value.

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"There you go, just a few reasons why the project is crap and why the market gives it little or no value."

 

All of course in my opinion. I might be wrong however my cash is only on one graphite company and it's not Archer.

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  • 2 weeks later...

Posted on the other forum: "Heard that Gerard is currently on holiday, which is very disappointing considering that the SP is languishing 40% below the placement price.

 

Any CEO "worth his salt" should be out there trying to promote the company!"

 

 

Maybe there's nothing to promote? In my opinion, the graphite project is worth 4/5ths of a banana sandwich and the market seems to agree.

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snc invest wrote: "I hope all you guy`s/ Girls aren`t just hoping AXE will sky rocket like SYR as I dont think it will. Shaun"

 

Shaun,

You are correct. This Campoona deposit compared to SYR's Balama deposit is like chalk and cheese so there is no reason for it to sky rocket like SYR.

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More the fool for believing Archer actually have a deposit of high enough quality to mine PROFITABLY including selling the product. Good luck with getting an offtake agreement when SYR will dominate the market and have the ability to crush any competitors on price due to the very low costs.

 

Look at the width of AXE's mineralisation. You design an open pit mine to cope with that and see if you can get cash costs under $1,200/tonne with such a high strip ratio.

 

SYR will define a 200M tonne JORC resource with high grades and that will be JORC compliant with less than 20 holes. Think about it. That's 10M tonnes of graphite bearing ore per HOLE. ONE hole from Balama is identifying more graphite than the entire AXE project.

 

Those who invest in AXE are in for a harsh reality check over the next 12 months. In fact, it's already started with the slide from 42c to 18c whilst SYR has risen from $1.10 to $2.20+ at the same time. Market is telling you something.

AXE had more than halved since May. SYR has doubled and the trend will continue. In fact, AXE will never see 42c again IMO.

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What a crock of shite report. Where's the medium/large flake? If that's the best they do they will be stuck under 22c for a LONG time.

In my opinion this deposit is crap and I think the market's muted response is telling people the same thing. Those who were looking for medium/large flake have been disappointed.

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