Re-rating of the Company?, page-11

Investment Perspective:

MRF is the most recent, genuine graphene stock to emerge. It can use the one step electrochemical exfoliation production method to produce high quality, low cost graphene.

MRF sits in contrast with Talga due to its extremely high grade ore, with ROM grades of 90-99% Cg compared to Talga’s expected grade of around 25%. The benefits of this super grade are compounded by the yield to graphene which has been demonstrated to be 50-80%, whereas Talga has released figures of 2-10%.

Put simply, MRF has to move much less ore to achieve sizeable quantities of graphene. This minimises both capital expenditure outlays and operating costs.

It also provides greater flexibility to transport ore to proposed graphene production facilities that can be located on the doorstep of the graphene consuming entities.

MRF will operate at a smaller scale than Talga due to the geometry of its orebody, but this is not an inhibiting factor at the early stage of the development of the graphene sector, as bulk applications are still being developed. The market is not yet able to absorb substantial quantities of graphene, though the availability of supply will rapidly stimulate demand.

The market has already re-rated Talga in recognition of its exciting potential but MRF has not yet seen its share price appreciate in the same way. It is time that it did so. Both companies have an exciting future but the spread between their market capitalisations is currently too great.

Competition between the two companies will be to shareholder benefit as each company should be vying for investors’ attention.


Company Description:

MRF has acquired very high grade graphite projects in Sri Lanka that it is preparing for production.

Historical records and economic assessments show sound profits are possible from long life small scale mining in the first instance, offering excellent returns on minimal capital outlays.

The long term growth potential will come from the amenability to a very low cost graphene production method with the best yields to saleable graphene possible.

Collaboration with leading scientific organisations and commercialising parties will give access to the entire value chain and an extended growth curve.


Compelling Points:


1/ Highest Graphite Grade Possible at >90% Cg


2/ Rapid Commissioning of Brownfield Sites


3/ Low Start-up Capex of $5 Million


4/ Low Operating Costs: High Margins


5/ Amenability to Graphene and Advanced Graphite Production


6/ Strong Board Credentials


7/ 100 % Ownership of Projects


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


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The Why's are now outweighing the Hype Investors and I think this means only one thing and I also think MR Grigor is well aware what will happen once this breaks out of .12 to .14... He is not the only one!


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I had thought that because of its graphene potential Talga Resources Ltd (ticker TLG, price 35¢, mkt cap $49m) would be the best performer of all of the ASX-listed graphite companies, but MRL now looks far superior.

Here is a quick comparison:

• In September 2014 Talga released the results of a scoping study based on an opencut mine at a 4:1 strip ratio producing 250,000 tpa ore grading some 24% total graphitic carbon (TGC). The process plant would upgrade this to 40,000 tpa of graphite concentrate grading 80-85% purity (which could be sold for $480/t) and 7,000 tpa of graphene grading 99.9% purity. However, it was thought that only a limited tonnage of the graphene could actually be sold as graphene because of the limited market for the material at this pioneering stage of the industry, and Talga assumed, for the sake of the exercise, that 1,000 tpa would be sold as graphene with the remainder sold as high quality graphite priced at US$1,600/t. That would result in annual project revenues of some US$84m. Capital cost was put at around $30m. Operating costs were put at $84/t of feed (i.e. $21m annually) and that included processing costs.
• MRL could achieve revenue of US$75m from mining say 5,000 tpa (continuing with the example provided by CPS Capital) and producing 1,000 tpa graphene priced at US$55,000/t and 4,000 tpa of high quality battery grade graphite priced at US$5,000/t, at a capital cost probably well under $10m, at much lower operating costs (a cost of US$600/t for the raw graphite would amount to $3m annually, to which must be added the cost of processing) and probably earlier to boot.

OR

Finally, looking at the chart, it can be seen that yesterday the shares jumped from the previous close of 5.7¢ to as high as 9.1¢ before settling at 7.2¢, a rise of 1.5¢. That was in reaction to the announcement on graphene yields. The shares have now established support on the uptrend line I have drawn, while resistance is apparent in the 12-14¢ range.

Dare I state that a breakout above that level would suggest a target of about $1 per share?


http://www.newingonstocks.com/review-of-mrf/

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I think the Fundamentals are shining on this one; I don't think this oversold undervalued gem will give us many hints in the Chart that it intends to rerate... I think when this goes it will be massive and all in one day like TON's run this year...

I also think as more and more deep pockets compare SL Vein and Flake and they will realize just how Imbalanced it is...

If they are looking for Leverage and to Reduce Risk they may not like the Flakers as once they did....

MRL Corporations Strong Management cannot be underestimated; I know MR Grigor understands their importance right now....




Kind Regards

DYOR !!!