Hi All; I am Really happy right now with this CR and I predict...

Hi All;

I am Really happy right now with this CR and I predict an upcoming Re-rate like MR Grigor also suggested...

Very exciting with more news running towards us in my opinion.

The SL Government is looking strong and one of the Stand out Emerging Countries compared to the majority...

TRADE
SECURITY
VEIN GRAPHITE / GRAPHENE

The Disruptive commodity is going to drive many looking for a safe haven and also MRL Corporation is shaping up to fit the Bill in Sri Lanka as the Safe Haven company in my opinion...

Graphene: Bringing Futuristic Super Tech In 2016

http://www.knowyourmobile.com/mobil.../graphene-bringing-futuristic-super-tech-2016



Graphene is a miracle material poised to change mobile devices as we know them into fantastic sci-fi hardware


I am predicting many offers of Trade as well going after Sri Lanka just because they are such a stand out. Very happy with the Political Direction of Sri Lanka.

Are they going to help MRL Corporation with Dormant Mines and Graphene Facility?


http://www.mrltd.com.au/attachments/article/127/20150821-MRLReasearch-FEC.pdf


http://static1.squarespace.com/static/52efc154e4b0c6787ab52ec3/t/557e979be4b00198d21b8ab8/1434359707626/Graphite DislocationV1.pdf

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The world is teetering on the Raggedy Edge -


Forecast Demand

Analysts who follow the industry are expecting a significant increase in demand for natural flake graphite, driven primarily by growth in the lithium ion battery industry. Graphite is the material of choice for the anode of the li-ion battery. A typical battery contains 10 to 15 times more graphite than lithium. Li-ion battery graphite can be either natural or synthetic, but natural graphite is gaining market share because it is cheaper than synthetic. Several new li-ion battery plants are under construction, including the Tesla (NASDAQ:TSLA) gigafactory in Nevada .

Chinese automaker BYD is developing li-ion battery manufacturing capability at about the same rate as Tesla, and Daimler is adding capacity, though on a smaller scale. Panasonic, LG and Samsung are all constructing battery factories in China, as well as smaller companies such as Geoby (which manufactures electric bicycles).

Over 20 million electric bicycles are sold in China every year, but most are powered by lead acid batteries which are about one third of the cost of li-ion batteries for the same output. Prices of li-ion batteries have been falling rapidly, and are now cost competitive with lead acid batteries on a whole life-cycle basis. Li-ion batteries are becoming common in many applications such as power tools, lawn mowers and golf carts.

However, in spite of the increase in li-ion battery production, the last two years have seen no increase in world demand for natural graphite. That is because batteries still account for only a small portion of the overall flake graphite market, and increased demand for li-ion batteries has been offset by a slowdown in demand from the Chinese steel industry, which is still the world's largest consumer of graphite. Byron Capital Markets is forecasting that the natural graphite market will slip into a deficit position this year, and will require an extra 500,000 tonnes per annum of supply by 2020.


Figure 1 - Future graphite demand


As demand increases, supplies from China, which account for about 70% of world production, are expected to fall. The Chinese government has been forcing many of the small mines, to close or consolidate, because of poor pollution control and labor safety standards, and many of the Chinese mines are running out of economically extractable graphite, especially the large high quality flake graphite needed for li-ion batteries. Quality, consistency and reliability of supply are common problems with Chinese suppliers and are forcing Asian users to look outside of China for future supplies.

It is important to understand the difference between the three types of natural graphite. Flake graphite refers to crystalline graphite with a particle size above 200 mesh. Below 200 mesh, the industry refers to the graphite as amorphous, although technically it is still crystalline. The third type of graphite is vein or lump graphite which is found primarily in Sri Lanka.

Figure 1 includes all forms of natural graphite, of which flake graphite accounts for about 45%, or about 450,000 tonnes per year. Flake graphite is the material of choice for li-ion batteries and most of the demand increase is expected to be in the flake graphite market. The 500,000 tpa shortfall predicted for 2020 should be compared with 2014 production of about 450,000 tpa of flake graphite. In other words, forecasts indicate a more than doubling of flake graphite demand within 5 years.


Future Prices

In the economic evaluations of their projects, most of the graphite companies are using price forecasts which show significant increases between now and 2020. For example, in their feasibility study for the Molo project, Energizer has based their cash flow forecast on data from Roskill, which show price increases as indicated on the chart below:


Future graphite pricing forecasts

I think they are overestimating those price increases. Many of the new discoveries are high quality deposits with good head grades and low operating costs. It is hard to envisage any major long-term price increases if there is an abundance of low cost supply available.

There may be temporary fluctuations in the supply/demand balance due to the timing of the start up of new mines, but there will be no long-term shortages, and no significant long-term price increases. There may; however, be a widening of the gap between large and small flake sizes, because all producers will produce a range of sizes, and if demand for large flake increases disproportionately, then there will be an oversupply of small flake sizes.

New supply will enter the market, because demand is growing and there is room for the market to absorb more production. However, most of the prospective junior mining companies chasing graphite will fail, simply because there is not enough room in the market to accommodate all of them. Investors who choose the right companies will gain, those who choose wrongly will lose.

The companies who succeed will very likely have most of the following characteristics:

1. A high grade, high quality deposit with enough known resources for at least 20 years of production
2. Low operating costs (MRL Corporation)
3. Low capital costs (MRL Corporation)
4. A high proportion of medium and large flakes - (SL Vein is Superior)
5. Purity which exceeds typical specifications - (SL Vein is Superior)
6. Take-off agreements with key customers and easy access to graphite markets
7. First mover advantage

Capex comparison

Estimated capital costs for the development of the proposed projects are listed below:



Talga is taking a different approach to processing and production. They are targeting the graphene market with what they claim is a novel one step production process. According to their feasibility study, their products will be low grade, low value graphite fines, higher value micronized graphite and graphene. For people interested in graphene, this paper from Talga's website provides an excellent summary of its potential uses.

The futuristic graphene market is in its infancy, applications have been developed only on a laboratory scale, and graphene is not a significant component of today's graphite market. There are no commercial applications, and no market other than small quantities for research, so nobody really knows what the future holds for pricing and quantities for graphene. For that reason, Talga is omitted from the evaluation.

Source: http://seekingalpha.com/article/3195476-profiting-from-the-upcoming-graphite-boom

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Here is some basic Market data points....


http://market-ticker.org/akcs-www?post=230635


http://www.zerohedge.com/news/2015-...-preparing-controlled-demolition-stock-market


http://www.washingtonsblog.com/author/oil-price


http://www.zerohedge.com/news/2015-...med-nightmare-scenario-central-banks-now-play


http://www.zerohedge.com/news/2015-...-deflation-trigging-next-round-global-market-


http://www.zerohedge.com/news/2015-...-forget-gold-has-outperformed-stocks-40-years


http://www.bloomberg.com/news/artic...omes-in-new-york-and-d-c-are-now-losing-value


http://charleshughsmith.blogspot.com.au/2015/09/will-fed-have-to-save-emerging-markets.html


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Graphiters might be aware of how disruptive and special their material is but most of the market I predict will be flat footed...


Marc Faber





Great tidbits in this one in my opinion...

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Because of the nature of SL Vein Graphite I predict we will see real growth in Graphiters with strong Vertical Integration and Value and real contraction in many of the traditionally strong materials and Graphiters with weak Balance Sheets...


http://www.forbes.com/sites/ralphbe...ays-wrong-how-can-its-policies-ever-be-right/


https://mises.org/library/why-economics-matters-0


http://www.atr.org/governor-cuomo-rejects-math-showing-new-york-biggest-population-loser-2013


http://sputniknews.com/europe/20150...es-economy-conflict-europe.html#ixzz3kO9GQ3aS


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The realty is that MRL Corporation has done its job so far and now that it is a true GRAPHENER as well it is heading I think towards a Boom Cycle...

There is more then a 75% chance of pulling up the Purity from their Positions and the upside is looking very good; love those margins.

The Value is outing because many Commodity Holders understand their positions are never going to truly recover!

Declining prices are inevitable with Graphene and look at how SL Vein can take up a huge piece of the Marketing under-cutting the rest !!!!


1. The use of graphite in lithium ion batteries and other high tech applications is expected to more than double the world demand for natural flake graphite by 2020.

2. In addition, the supply of graphite from China is seriously limited as mines are running out of high quality, economically extractable ore.

3. Pressures from the Chinese government to clean up pollution from graphite mining is compounding this problem.

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Easy to be wrong !!! DYOR !!!!


The Hidden Value is going to stand out here even for the Sentiment Investors....


What do you think?

@martis
@Buzzcut
@showstring
@Meteor
@chrome033
@insaf
@aloftas
@peppa
@daveg
@tickle
@mytime
@kuros
@ozpolarbear
@earlyrise
@waltavoc
@Waiting4Godot
@Bigglesworth
@alpaka
@Aljini

And all the other wonderful posters on HC




Kind Regards

To err is Human!!!

Mistakes are Easy!!!

DYOR !!!

Easy to be 100% Wrong!!!