MRF
Click for more information
3.17% 6.1¢ mrl corporation ltd

A very important question @aaremms :) Firstly lets briefly look...

  1. nasabear
    5,963 Posts.
    lightbulb Created with Sketch. 110
    clock Created with Sketch.
    20/05/15
    09:16
    Post #: 15312761
    A very important question @aaremms

    Firstly lets briefly look at MRF:
    1. A high grade, high quality deposit with enough known resources for at least 20 years of production
    2. Low operating costs
    3. Low capital costs
    4. A high proportion of medium and large flakes
    5. Purity which exceeds typical specifications
    6. Take-off agreements with key customers and easy access to graphite markets
    7. First mover advantage
    These are some of the articles recommendations for finding the right Graphiter versus the wrong Graphiter:

    I would say it is missing few things but it is a good basic list.

    MRF clearly meets the articles requirements and then moves well beyond them in my opinion but what about SL Vein versus the world? Well it simply does not compare in my opinion. This is the reason it is so exciting. Other Vein/Lump Deposits don't even compare and it all comes back to formation.

    SL Vein was formed hot compared with the rest I believe. Obviously you will need to DYOR !!!

    ..........................................................................................................................................................

    Notice AAremms How these facts about MRF relate to what your article says to look for in a Graphiter?



    Vein graphite is the most valuable and purist occurring natural graphite in the world.

    It occurs in narrow vein systems that are very amenable to modern low cost underground mining techniques, but this very rare form of graphite is only found on a commercial scale in Sri Lanka.

    MRF is the most advanced ASX listed vein graphite exploration and development company in Sri Lanka with five 100% owned project areas ranging from early stage exploration to near term production assets on granted Mining Leases with crucial land access agreements already in place.

    Sri Lanka, in civil war for 26 years which concluded in early 2009, has never seen modern mining techniques adopted to explore and mine for graphite. The country produced more graphite in 1916 than it did in 2013. Subsequently the market for Vein graphite is small, due largely to supply side restrictions and a tightly controlled market. MRF has the potential first mover advantage and the opportunity to open up new markets for the much valued high purity graphite.

    We believe the Sri Lankan vein will beneficiate to high value products like battery grade spherical graphite at a significantly lower cost than existing competitors. Vein is higher grade than traditional flake, cheaper to purify and consists of a higher crystalline structure than synthetic so is more electrically, thermally conductive and likely amenable to spheriodisation. This combination of properties means that once commercially available, MRF’s beneficiated graphite will be in high demand and in theory could command prices as high as USD $10,000/tonne.

    The company’s initial strategy is simple; identify commercially viable vein deposits, develop and incrementally place into production. A low CAPEX/OPEX production template will be applied to individual deposits which incrementally build output while the early cash flow funds the ongoing re-development of an already identified 40 plus historical sites. With refurbishment of some shafts already under way and the recent acquisition of Aluketiya on granted Mining Leases, MRF plans to be producing by as early as Q2 15.

    Unlike other listed graphite companies MRF’s strategy is targeted clearly at the highest growth segments of the graphite market, high purity graphite will enjoy increasing demand from emanating Future Use electronic and clean energy applications. The blue sky could come from the in country vertical integration of MRF’s ROM (Run Of Mine) product to high purity, high value products like spherical graphite or nuclear graphite.

    And unlike other ASX listed graphite companies, who will only produce a small quantity of graphite suitable for the Future Use markets, potentially almost all of MRF’s product will be suitable for this high value sector of the graphite market.

    The company has established an adit at Pandeniya and recently commenced a bulk sampling program focused on metallurgical testwork, research and marketing. The first samples have arrived at Wuhan University of Technology in China and the Nagram Metallurgical Group in Perth with results due by years end.

    The company is due to commence off take conversations with an understandably excited demand side who, until now, have been unable to secure constant supply of this valued material. This is evident by the strong investor support the company is already experiencing from Chinese and Singaporean investor groups. Demand for Future Use electronic and clean energy applications is set to grow, would be buyers of Sri Lankan high purity vein graphite have been restricted by issues of scale and secure supply. With the introduction of modern mining MRF could be the answer to ensure cost effective scale to the supply side of Sri Lanka’s rare but valued vein graphite.

    Source: http://www.mrltd.com.au/attachments/article/127/MRF - Future Use 071114.pdf

    ( Notice AAremms How these facts about MRF relate to what your article says to look for in a Graphiter? )

    ................................................................................................................................................

    Back to your original Question about Vein Graphite.....

    Nature of vein graphite

    Sri Lankan graphite deposition model is best described from the ‘bottom up’: tension fractures formed in the metamorphic sediments, caused by the folding of the sediments, creating ‘conduits’ for the hydrothermal deposition of high quality vein graphite.

    Historically, mining of these veins has found the veins generally increase in thickness and grade quality with increasing depth. Graphite veins generally dip steeply at –70° to near vertical, enabling ‘narrow vein’ extraction mining techniques similar to those used on narrow vein, high-grade gold deposits. The method commonly used is an overhead retreat stopping technique where the high-grade vein graphite is mined and hauled to surface without contamination.

    The graphite selvages, in contact with the surrounding waste, is hauled to surface and stockpiled for upgrading. The balance of the waste is used to fill the floor of the stope. Due to the nature of the vein graphite, it is anticipated vein widths of ~25cm, using narrow vein mining techniques can be economically extracted from underground operations.

    About Graphite

    Natural graphite occurs in three forms: amorphous graphite, flake graphite and the most rare and highest quality form being crystalline vein graphite. Sri Lanka is famed for being the only commercial producer of crystalline vein graphite (lump or Ceylon graphite), the highest quality of naturally occurring material in the world.

    The quality of vein graphite produced in the country has a purity level in excess of 90% TGC (Carbon as graphite) which means little upgrading and processing is required to make a high quality saleable product.

    Amorphous (micro crystalline) graphite is the least pure form of naturally occurring graphite and commercial deposits usually have a carbon content of 70-85%, and are found as lenses or lumps with flat fracture cleavages. It is normally formed by metamorphism of previously existing anthracite coal seams.

    Flake (crystalline) graphite is the more common form of graphite and typically has carbon content in the range of 80-99%, an d is usually formed in metamorphic rock in concentrations of 5%-12% of the ore body. Mining and processing of these deposits is similar to open pit gold or copper mines, requiring ‘large scale’ mining and processing to extract the graphite.

    Large-scale mining and processing plants typically equates to high capital expenditures and relatively high operating costs.

    Vein (crystalline) graphite is the purest form of graphite with TGC grades typically >90%, with some grade as high as 99.5% TGC. Mining vein graphite may be considered analogous to high-grade gold vein mining, requiring considerably less capital expenditure when compared to large-scale open pit mining. That is, development, mining equipment and processing plants will be of a significantly smaller scale. Operating unit costs will also be lower than those for typical large-scale open pit mining.

    Source: http://www.mrltd.com.au/attachments/article/136/20150401-Benchmark-PRY.pdf

    ..................................................................................................................................................................

    Take for instance....

    Talga Resources has five 100% owned graphite projects comprising multiple deposits, all of which are located in Norrbotten County, north Sweden.

    Recently Mr Grigor pointed out the competitive advantage of both being able in 1 step process to convert ORE into GRAPHENE.

    http://hotcopper.com.au/threads/war...review.2517626/?post_id=15298239#.VVu260Y0E9o

    Still; ultimately SL Vein has no other rivals in my opinion; even the Sweden Graphite.

    An easy place to start is the News Flow for MRF over the last year....

    For EXAMPLE:

    ....................................................................................................................

    MRL Corporation test work proves graphite suitable for lithium batteries

    http://www.*.com.au/companies/news/...ite-suitable-for-lithium-batteries-60218.html

    http://www.*.com.au/genera//img/companies/news/mrl_corporation_projects_map_new_358x266_54bed048749c5.jpg

    MRL Corporation's (ASX:MRF) flake graphite from its Aluketiya project in Sri Lanka has undergone metallurgical test work that showed its graphite exceeds the grades required for use in lithium batteries.

    Sri Lanka is famed for being the only commercial producer of crystalline vein graphite and is among the highest quality of naturally occurring material in the world.

    Testing conducted at the Wuhan University of Technology found graphite from MRL’s Aluketiya project in Sri Lanka contained 99.98% Total Graphitic Carbon (TGC).

    The test work results are likely even more impressive given it was carried out on low grade unprocessed bulk sample material from Aluketiya using an acid leaching process.

    This should provide an impetus to project development at Aluketiya and place firmly on the road to becoming a graphite producer.

    Typical high-grade Sri Lankan graphite achieves a greater recovery rate than most disseminated flake graphite deposits due to its reduced physical processing requirement and much higher starting TGC purity.

    The graphite used had an initial grade of 93.1% TGC. The expected average grade of vein graphite to be mined by MRL is more than 95% TGC.

    .......................................................................................................................


    - Sri Lanka is one of the fastest growing economies with a GDP of 8% between 2010 and 2012
    - The Sri Lankan government is promoting foreign private sector investment
    - There is excellent infrastructure and experienced mining labour available
    - The country is English speaking with a high literacy rate of >92%
    - Sri Lanka is run by a democratic government, and is a member of the Commonwealth
    - There is excellent exploration and mining tenure available
    - Subject to Board of Investment approval to mine high grade vein graphite for export, MRL may receive:
       - A tax free holiday period
       - Duty free imports of capital equipment
       - Streamlined repatriation of profits

    .....................................................................................................................................

    Analysis

    Peer group analysis and valuation Australian graphite explorers operating in Sri Lanka include Bora Bora (ASX: BBR) which is capitalised at $6 million. Bora Bora holds a 75% interest in its Sri Lanka permits and has recently conducted an aerial VTem survey of Sri Lankan assets and interpretation of results. The other is Viculus Limited (ASX:VCL) which reached an agreement to acquire five exploration licences in Sri Lanka’s Western Province that are prospective for graphite mi
    neralisation.

    The company has signed a Heads of Agreement to acquire Euro Petroleum, which holds the contractual rights to acquire 70% of Lanka Graphite. MRL is currently capitalised at $2.2 million, holds a 100% interest in its Sri Lankan assets, and has undertaken local EM surveying and has already commenced on site project development with field teams. At this stage of operations both companies should carry similar valuations.

    This is equivalent to $0.08 per share at a market capitalisation of $6 million.

    On a range of metrics MRL is compelling:

    MRL
    BBR
    VCL

    Issued Capital

    74.3
    24.4
    71.9

    Market capitalisation $m

    2.38
    6.09
    14.38

    Cash (31 December 2013)

    1.28
    1.42
    5.00

    Enterprise value

    1.10
    4.67
    9.38

    A key point to note is that MRL’s Sri Lankan operation is not a green field exploration. All projects areas have extensive historical workings and remnant graphite. This is resource delineation prior to conversion to a mining licence.

    MRL has already concluded nearly all the land access agreements required for exploration and also locked in the land access for potential mining in the Priority 1 area.

    Safety training and the implementation of a management safety system are well advanced. All safety and operations are being completed to the standard which would be expected in Australia.

    Basically, MRL is on the ground and operating in Sri Lanka, which neither of the above companies are at this point in time.

    Risk v Reward

    MRL’s projects have low capex and opex requirements.

    Production of 5,000tpa of premium quality vein graphite should generate revenues of approximately of US$10m pa.

    Capex to achieve this would be

    Most other potential producers have capex requirements of $34m and up to $133m. This level is to produce 20,000-50,000 tpa of graphite from grades ranging between 7% to 12% Carbon as graphite.

    Source: http://www.mrltd.com.au/attachments/article/127/*_ResearchNote_MRLCorp-07-03-2014.pdf

    .................................................................................................................................................

    I hope these various sources help to answer some of your questions about Vein and of Course MRF

    I will leave you with a some food for thought. In my opinion the answers are all there like seashells on the beach and we just have to get a bucket and have fun collecting them. What I do is start a file with a Nickname to make it fun like SMURF !

    An example of what I mean is recently it came up about JORC and how MRF is going straight for the Cashflow. By gathering information you can quickly answer those questions...

    http://www.mrltd.com.au/attachments/article/136/20150402-Inside Briefing.pdf


    I could be completely wrong so DYOR !!!!



    Kind Regards

    To Err is Human!!!!
    Last edited by nasabear: 20/05/15
    MRF Price at posting: 6.6¢ Sentiment: Buy Disclosure: Held
    Likes Created with Sketch. 3  Upvote
    lightbulb Created with Sketch.  Great analysis
    Stroke 3 Created with Sketch. Comments Created with Sketch. Reply

  2. Top Stories

 
watchlist Created with Sketch. Add MRF (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.