EcoGraf has the potential to be a company maker, I have no doubt about that. Whether the market will recognise the significance if/when a collaborative partner is announced is another thing.
If the company had $5m in the bank, enough to get through until the end of the year, I would still hold but I would be making a lot of noise for changes at a management and board level.
What management doesn't have right now is money and time to raise money. This is the second time in less than a year that they have sailed too close to the wind for my liking. For the last 18 months or more the company's cash position has been a little dire, management always exceed the estimated quarterly cash outflows, they constantly fail deliver on milestones within the timeframe that they give to shareholders and often they miss these timeframes by a lot.
Tanzania is a mess. Not a single graphite hopeful has been able to secure funding to develop their project. And to the best of my knowledge no new mining projects have gone ahead since the introduction of the mining legislation changes.
Despite the enormous potential that this company has I'm going to sit this one out until there are changes at the management and board level or, until there are drastic changes in Tanzania that make it attractive for foreign investment.
KNL Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
