PFS was a very good result. 1) Capex is reasonable and...

PFS was a very good result.
1) Capex is reasonable and conservative. I suspect others in the market, if they got financing, would have to come back for a second "dip". Just look at the only example to get equity financing. I have seen others were there are glaring holes and wonder why ASX doesn't have red flags going up everywhere.
2) Logistics works a treat.
a) They have a port close by,
b) a sealed road from gate to port.
c) a workforce not so far away.
d) plenty of water.
e) access to power
2) OPEX was not bad and has a lot of areas where they can optimize. They have already hinted at this in some comments on separation of material and further work going forward. The Head Grade at 5% was always going to mean OPEX was a little higher than peers but that 5% grade is supposed to be ideal for formation of the flake. So be interested how this rolls into marketing the product into high end applications. The battery testing done to date with the reversible capacity on a blended product (not separated) also gives further support here.
3) Only enough ground was drilled to be able to get a PFS out to ensure the project numbers worked out. The drilling underpinned a resource which provided the basis for a PFS.. HXG were not flushed with cash to drill out the whole resource. So heaps of upside in resource upgrades and in the past the VTEM results very accurately predicted the resource outline so there is a high level of confidence here.
3) You have an MD that knows how to build Operational Mines. He knows where the mistakes are normally made.. Not a rookie like so many of the other Graphite play CEOs. I think they brought him on-board for this reason.. He is solid and knows what to do to build a working mine. So I suspect the PFS is conservative and Mike will make it happen.
4) You have a Chairman that is an expert in Finance. This is why Charles was bought onto the board (read the announcements). He also has a track record of turning around and financing projects. Another solid member of the team.

They needed the PFS to make sure the project was solid. Now the marketing, financing etc comes along. Also with a PFS, that people can run numbers across, larger investors start to take notice.. This project is big, the product is clean and the market is developing.

Looking forward to the new team kicking their next set of goals.

Do Your Own Research.. Not investment advice.