The Method refers to the Analysis used by Long-termers to make large; long-term acquisitions and assessments of RISK/VALUE.
I used an example from last year everyone is familiar with; especially those wondering about MRF's Management Range I have been speaking of....
It is pretty clear from the above report how I have come to my calculations for MRF....
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Why was BBR calculated with a Long-term Horizon of $1.40 to $3 depending on news flow and peer analysis and so on?
Why do I calculate a Management Range of $1.20 to $2.80 for MRF?
What Methods are used in the BBR Report?
What methods am I using for MRF?
http://boraboraresources.com/home/images/BBR_April_14.pdf
Key Investment
Drivers
Low risk high grade Sri Lankan graphite project.
Value adding of lump graphite to coated spherical graphite and/or graphene production.
Near term news flow over the next 6 months.
Market recognition with placement to strategic global fund manager.
Demand driven graphite boom currently underway with burgeoning demand for spherical graphite and graphene.
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A great example of a Method Buzz would be Peer Comparison. My friend did not understand how Peer Comparison works. Did not know how I could look at Peers further down the track for information and so on.
It does take a bit of study but it is a tried and true METHOD of Analysis in my opinion.
What are the Key Investment Drivers for MRF?
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Near-term cash flow targeted
MRL now has an extensive portfolio of high-grade vein graphite licenses in Sri Lanka and aims to develop multiple small-scale production hubs.
The company said a combination of historical production and drilling results showed there was an abundance of high-grade graphite across its concessions.
"Our activity is now focused on establishing the most economical locations for mining this mineralisation," the company said.
"This will be determined by the extent of the veins and the metallurgical qualities of the mineralisation.
"But rather than amassing vast quantities of JORC resources, our strategy is aimed at initiating production and generation cashflow as quickly as possible.
"Evidence to date suggested the cost of getting into production would be extremely low."
http://www.*.com/c...-bulk-sampling-at-graphite-project-56657.html
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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?
The Long Term Horizon is very important when making plans, targets and investing out over a long term.
1/ The intersection of Macro; Sovereign Leverage/Risk; Tech; ORE into GRAPHENE; China and Premium Prices.
2/ Aligned with basic Supply and Demand. High Demand/Low Supply.
3/ Strategic Importance for AI; Energy; Medicine; Space; Military; Graphene Chips.
4/ Capital Structure and Management.
5/ Finds of the Century to come...
6/ Overselling of Niche.
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
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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
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1/ The tests were conducted to check for the amenability of the ore
for single step extraction of graphene.
2/ The quality of the prepared graphene from MRL’s graphite is
outstanding and comparable with the quality of graphene
prepared by synthetic routes.
3/ MRL’s graphite has very high crystalline carbon content not
observed in any other previously tested graphite materials.
4/ A number of processes were tested with electrochemical
exfoliation providing the best results. This process route was
stated to be scalable and therefore suitable for commercial scale
production of single and few layered graphene directly from the
graphite ore.
5/ The Company will now consider the merits of producing both
graphite and graphene in its development plan. Discussions will
be initiated with a number of research organisations to optimise
that route to production.
Source:
http://www.mrltd.com.au/attachments/article/136/20150513-GrapheneResults-FINAL.pdf
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Source:
http://www.mrltd.com.au/attachments/article/136/20150513-GrapheneResults-FINAL.pdf
1/ High Quality / Low Defect Graphene
2/ Independently Confirmed
3/ Run Of Mine ORE
4/ Spherical Graphite for Lithium Ion Batteries
(Graphene Batteries as well obviously as well as all the other Tech Areas like Graphene Chips)
5/ Graphene Production:
1 Step Process
6/ Sold into Traditional and High Value Markets
7/ Unequaled by Graphite Projects in any other Country
My prediction, for what its worth, is that this Capital Overlapping allows MRF to name their Price and more importantly get a leg up that Talga just didn't have.
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So what are the Key Investment Drivers for MRF?
What is the Long term Horizon by your calculations?
Why is MRF a very strong candidate for Dormant Mines ?
What is Sovereign Capital Overlapping/Demand?
Kind Regards
Could be 100% Wrong!!! DYOR !!!!
