At the latest after the scooter manufacturers Tesla Motors announced a so-called
Build “Gigabatteriefabrik” which is to establish by 2020 lithium-ion batteries with a capacity of 35 gigawatt hours (GWh) per year, pushed the topic into the focus of graphite
Commodity investors worldwide. Because graphite is one of the most important components of these batteries and should thus greatly from the expected, significant increase in demand in particular in the field of
Total electric mobility benefit.
The wish to numerous mining Juniors who is currently working to bring a graphite mine to production. A little known in this country, small but fine company from Australia named MRL Corporation (WKN A1T7RQ /ASX MRF) could be the race for the first new graphite mine outside China to win.
And MRL has a distinct advantage over many other candidates in the graphite market. Because MRL has been active in Sri Lanka. And only there one finds the extremely high grade
Graphiterzadern, for which the country is known.
Extremely highly in this case means levels between 90 and 99% total carbon graphite, while the average contents are world only at 10 to 20%. 50% of all graphite mines even further
with less than 6%! This means MRL needs to invest in contrast to its competitors not millions of dollars in a treatment plant. When the Graphiterz is taken out of the ground, falls at most
yet to sort the material, which can initially be carried out at low cost by hand. Only at a later increase in production is expected to a mechanized process are necessary.
This is an enormous cost advantage over other graphite producers who need to concentrate while MRL so-called DSO (Direct Shipping Ore) – ie material that almost no
further treatment may be delivered – produced
.
In addition, the ultra-pure graphite from Sri Lanka is extremely popular with the end customer. In recent years, in comparison with the common flake graphite, a significant premium
paid for DSO material from Sri Lanka.
And MRL will – also in contrast to most potential graphite producer – go into production at the beginning of next year. You want over a period of 18 to 24 months at first
on the Aluketiya project, which already has a mining license, and the Warakopola project take up to 20 wells in operation in order to gain access to the Graphiterzadern. There MRL has with
Holes already proved grades of up to 99.2 and 99.3% total carbon graphite. Here, the focus is on old shafts, the lack of capital and insufficient ventilation due
and water control were abandoned and takes these with conventional but modern methods into operation again.
Analysts at Far East Capital go in a base case scenario assumes that MRL could achieve an output of 5,000 tons of graphite per year with 20 producing wells. In order to,
believes Far East Capital, the company could achieve an EBIT margin of 7.5 million AUD and an EBIT of 3.8 cents per share (not diluted). With a market capitalization of not
Diluted just 12.8 million AUD …
The costs for the startup of a well lie loud MRL at around $ 150,000 and the company has already selected 12 wells that you want 2015 and 2016 full production. According to
MRL should the break-even can be achieved in 11 producing wells. Until then, MRL is well funded because you receive 4 million dollars in fresh capital recently
could. It is still pending a final approval, then MRLs can this year (December) go ahead and take the first slot on the Alukatyia project into operation. The first ore could
will consequently be funded in January 2016th
So far so excellent. But there is still quite significant in MRL upside potential over said far beyond. Because the ultrahochgradige graphite material the company is loud
a study by the University of Adelaide outstandingly suitable for producing the “miracle material” graphene. Graphene conducts data better than silicon, heat is better than copper and beyond tensile strength than steel and at the same time only one molecule thick.
As the analysts of Far East Capital cite as an example, can be produced at the graph of a given quantity of graphite graphite MRLs projects 50 to 80%, while at Talga
Resources (WKN A1C0Q2) for example, only 2 to 10% would be. This therefore means MRL has significantly less graphite used for producing graphene than its competitors and has such a significant
Cost advantage.
The market for graphene applications is still relatively small – although it strong growth is predicted – and could be a glut of new material not currently afford.
Therefore Far East Capital has designed a second production scenario for MRL, it is considered in the of an output of 4,000 tons of graphite, and “only” 500 tons of graphs per year (50%
“Loss” in the preparation). Thus, the profitability of the operated by MRL shafts would rise explosively Analysts. Because in this case comes from a Far East Capital
EBIT margin of 33.4 million AUD and an EBIT of 17 cents per diluted share, from not!
Although MRL Corp. will remain a small producer compared: Given the still low market capitalization and the excellent outlook, risk-conscious investors here provides a
excellent chance at a relatively cheap price and time – shortly before the start of production – to join a very promising company
The ultrahochgradige graphite material that wins MRL makes production on the one hand extremely cost – in terms of both OPEX and CAPEX – and scored on the other premium prices. About that
, it is ideal for the production of graphene, which again opens up additional potential for companies and share.
So if the considerable risk associated with the investment in a junior mining exploration company – especially since no formal MRL identifies resource but and to the bores
leaves by historical data obtained information – does not shrink, is likely to see a very interesting investment opportunity MRL. The management is the way with about 10% of the company
involved and so benefited greatly from the company&s own success.
MRF Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
