New Shareholder My buddy, a geologist, told me NGC is the best way to play graphite and that its a steal at these levels. Its not my area of expertise but he made me a fortune predicting that Hathor would be taken over so I trust him.
I did some DD and it looks like the industry has good fundamentals going forward. It appears that NGC have the ability to produce spherical graphite without excessive losses so they can participate in the battery market. According to the feasability study and using my own inputs I think they are trading at or slightly below the absolute worst case net NPV. The open pit design, infrastructure and region leave little to chance which is worth a lot to me. I dont know how much they have already discussed it but I dont think they will have trouble finding a farm-in partner which is also important to me as I am a dilution-phobe. There is also a real possibility of a take out by a strategic buyer. Within 2 years the company and shareholders can be making a fortune if it doesnt get scooped up before then. Its hard to call a bottom but I bought a little in this area and I hope to buy more if it hangs around close to $1. There is a lot of upside potential but I am most concerned with risk and am comfortable with the limited downside. Any comments or insights are appreciated as I am still learning about this company and the graphite market. Good luck to all investors.