At this stage from my end of things I think the Structure and Management is a far more reliable measure of MRF and small caps in general.
I think MRF is at a normal part in the companies Mining Cycle. The facts that are measurable and matters most in my opinion is not Price but Value.
The news flow is going to continue to be amazing in my opinion and in time Value will out. In the mean time I think MRF has had a week that will change everything. The Marketplace is still very green and does not really understand SL Vein or even the significance of MRF's latest historic news. Of course China knew this quite some time ago in my opinion.
All MRF has to do is stick to the facts. The media is still playing catch up in my opinion.
1/ The Premium Prices
2/ Scalable Graphene
3/ Product Range
4/ Demand
5/ EV
6/ Batteries and Refractories
7/ China
8/ Graphene undercutting Market/Creating market
9/ Shifting Commodity Demand/Capital
10/ SL Importance and Specialness
11/ Graphite has had a Sri Lanka sized whole where it once dominated; now Sri Lanka is back!
12/ Australian Standards/Team
13/ Sovereign Risk/Leverage
14/ Tesla
Sri Lanka is one of the fastest growing economies with a GDP of 8% between 2010 and 2012
The Sri Lankan government is promoting foreign private sector investment
There is excellent infrastructure and experienced mining labour available
The country is English speaking with a high literacy rate of >92%
Sri Lanka is run by a democratic government, and is a member of the Commonwealth
There is excellent exploration and mining tenure available
Subject to Board of Investment approval to mine high grade vein graphite for export, MRL may receive:
A tax free holiday period
Duty free imports of capital equipment
Streamlined repatriation of profits"
The Peer Group gives us a possible example there and of course you are right. I believe the big finds of this century are yet to come. Modern Exploration has come a long way since Sri Lanka was last leading the world in Graphite.
MRF should be comparable with BBR and yet is dragging on the peer group like an anchor...
In this market of inefficiency and bubbles the market is returning to Balance Sheet Case by Case again and this is good news for Value because it always shines out.
"Recent test work undertaken by MRL Corporation, on its ultra-high grade deposits in Sri Lanka, suggest that it too may be a candidate for low cost production of graphene using a single step process direct from raw ore. Both of these companies could bring product to the market, massively undercutting the price of graphene. In doing so, they will be important facilitators to large-scale commercialisation of graphene."
With a barrage of examples of the uses and patented inventions made possible by graphene, Grigor explained that the super-material had the disruptive potential to affect demand for other mined commodities.
Graphene can be added to existing materials and products to enhance their function and performance, and reduce the quantities required in production; such as when graphene is added to copper it can increase conductivity and reduce the material need for the traditional commodity by up to 80 per cent.
It can also be used in the manufacture of concrete, increasing it's strength and precluding the need for steel reinforcing altogether.
Grigor also explained that the material strength of graphene, 200 times that of steel by weight, meant it could be used to create vastly stronger steel which would reduce the amount of iron ore required, and also reduce transport costs on the final product.
"There has been an explosion in the number of patents being taken out, as industry has been preparing to take advantage of a new and deeply disruptive graphene age."
The ability for miners to take advantage of this new market was limited to contributing graphite to the front end of the supply chain, sending it to specialist producers for manufacturing into usable graphene, Grigor said.
However, he noted two exceptions to this problem, flagging Talga Resources as a potential leader in global graphene supply thanks to an "unusually high grade deposit of graphite in Sweden" and plans for a graphene production plant in Germany, as well as MRL Corporation in light of recent test work on their ultra-high grade deposit in Sri Lanka, and their potential for low-cost production of graphene.
"Both of these companies could bring product to the market and massively undercut the price of graphene; in doing so they will be important facilitators to the large-scale commercialization of graphene," he said.
"Whether these companies become vertically integrated to benefit from multiple points in the value chain will depend on management and corporate objectives."
7/ Flaker Flight: Flakers around the world are going through big changes. As they realize the difference and the sound 101 theory to own both kicks in they will set up shop in my opinion. My exodus Prediction has never looked as on sound footing...
8/ Lithium is out and toxic...
9/ Tesla and Graphene.
10/ Australian standards and mining methods.
I remember when I called .70 for BBR last year; the target was attempted months later and like I constantly have said it takes time and numbers which is why attempts fail a few times. Right now; depending on news flow Veiners are heading for a massive growth period for many reasons:
1/ In this market of bubbles and inefficiencies things move faster and further then ever before.
2/ SL Vein is incredibly special and the Ability in 1 step to get Graphene
3/ China is coming for Vein.
4/ China leads the world in Graphene patents and technology
5/ Macro Drivers
6/ Tech Drivers
7/ Impact of SL Vein and Graphene on the market place
8/ Flaker Flight
9/ ORE into GRAPHENE
I think the Management Range is dependent like all Miners are dependent on the results of their tests and exploration; End-users; debt; Partnerships and much more.
The Value/Risk assessment has shifted and will dramatically reverse I think once MRF starts producing.
As for Off take Agreements. Hasn't the management been smart to look for premium prices? I think it is not only logical that the off-take agreements and licenses are coming up; I think with these historical results it is a safe speculation.
For a long while all I posted was the Macro Drivers and the Tech Drivers for the most part. Based off my conversations with my Chinese friends who attended the Graphene China Conference I became even more confident about China wanting to take Sri Lanka out to the Ball.
Macro Drivers are playing a larger and larger role in assessing these opportunities. Just look at China now in Sri Lanka!
Also MR Grigor has outlined why MRF is special and singled it out with one other. That cannot be downplayed in its significance in my opinion.
Licenses are to come and I also wonder about....
How can management improve its structure this year like last year?
Can MRF get more assets because of its world class best practices?
Can MRF link in with Australian Soft Power and help skills add to the adults in Sri Lanka?
Can MRF form partnerships that make them superior to the other mines and draw in the talent?
Are they going to be Aggressive Explorers this year?
Are they going to keep their targets conservative?
Aerial Survey?
Roads? Transport? Infrastructure Acceleration?
Cashflow Prudence and Management?
New Managers with dirt under their fingers?
Aiming at real depth?
Batteries and China Solar Panels!
Electric Vehicles!
Tesla!
Demand up Size of market up!
Specialist sales to specialist customers!
Diversified global spread of customers
Conductive paints and packaging
Race to meet the demand
Quality and in the race!
Diversify the Customers Risk!
Because of MR Grigor's long-term track record and Market insight, knowledge, experience, connections and trust he has built up his whole life. This news is of such significance it compares with MRF's historic Announcement.
Why is SL Vein one of the top 3 strategic resources in the world?
Why is SL Vein so special?
Why is MRF's latest news historic?
One of the excellent points about the Warick Grigor articles was he stayed focused on the most important Facts and Factors.
The next scientific steps to convert ORE into GRAPHENE are not going to take long in the scheme of things in my opinion.
Kind Regards
Mistakes are easy - DYOR !!!
PS - This is a compilation of interesting Articles and my thoughts scattered over many threads into one post. To Err is human! Could be wrong!!! DYOR !!!!
MRF Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
