MRF is making rapid progress towards achieving its strategy of producing high-value graphite from its Sri Lankan projects in the June Quarter of next year.
MRL Corporation (ASX:MRF) has received a Speculative Buy from Perth broker CPS Securities.
Shares in the company last traded at $0.088. The following is an extract from the report published by the broker.
Future Use - On track for production of high-value graphite by mid-2015
MRF is making rapid progress towards achieving its strategy of producing high-value graphite from its Sri Lankan projects in the June Quarter of next year.
This strategy is underpinned by its ownership of several world-class graphite projects with a track record of production, known mineralisation and existing mining licences.
Sri Lanka hosts some of the highest-grade vein graphite in the world - the +90% graphite as carbon grade of Sri Lankan vein graphite and its hard, thick crystalline structure could lend itself well to the production of high value battery grade spherical graphite.
The company recently embarked on a bulk sampling and metallurgical program aimed at determining the suitability of its graphite for high-value applications such as lithium Ion battery manufacturing. Results of the test work are due this quarter and provide a likely catalyst for a share price re-rating.
MRF has also commenced research into the production of spherical graphite as a beneficiated mine product. Positive results could see the company realise 5 x current prices on premium flake graphite.
MRF is currently drilling the Bopitiya/Pandeniya project, testing for extensions of vein systems associated with over 40 historical workings.
The aim is to prove continuity of each vein system at depth in order to assess and prioritise the pre-development of the historical shafts.
Initial results have been outstanding, with first assays achieving Direct Shipping Ore results as high as 98.5% TGC (Total Graphite as Carbon).
We recommend a speculative BUY, based on further share price catalysts from the following anticipated positive outcomes;
- On Going Drilling, Q4, High grade, deeper , wider the better;
- Test work results, Dec 14, Beneficiated to > 99.95% TGC. Spheriodisation results;
