This is getting Interesting!!! I was particularly intrigued by the 7th paragraph from the news release:
"The Company is also pleased to announce that we are currently drilling on Zone 1. Zone 1 has a current NI 43-101 resource estimate, and the current drill program is designed to add to this resource by completing infill and resource expansion drilling. During the previous 4 drill programs completed at Zone 1 the Company has only drilled about 20% of the geophysical anomaly. To date every hole drilled into this anomaly has returned excellent graphite grades which average 17%."
The graphite grade is the key and is very good especially, if you compare it to the other major graphite companies with only,Mason,having a better grade of 28% who's property is adjancent to GreeenBattery and look how low the other 2 major company's grades are, 4.3% and 2.1%,respectively. This means Mason's and Green Battery will cost a lot less to produce their graphite ,due to the better grades/quality.Refer to the graph below:
Graphite Deposit Ore Value Calculation FlakeMesh
size | Price/t
(US$) | Mason (Lac Gueret)
Grade 28%
(616 lbC/t) | Nouveau Monde
(Matawinie) 4.3%
(97 lbC/t) | Northern Graphite
(Bissett) Grade 2.1%
(46 lbC/t) |
| | | % | lb/t | $/t | % | lb/t | $/t | % | lb/t | $/t |
| -32 | $6200 | | | | | | | 16 | 7 | 22 |
| -50 | 1200 | 13 | 80 | 48 | 20 | 19 | 11 | 42 | 19 | 11 |
| -80 | 500 | 16 | 99 | 25 | 32 | 31 | 8 | 30 | 14 | 4 |
| -100 | 490 | 14 | 86 | 22 | 34 | 33 | 8 | 12 | 6 | 2 |
| fines | 375 | 57 | 351 | 66 | 10 | 10 | 2 | nil | | |
| | Total ore value/t | $161/t | | Total | $29/t | | Total | $39/t |
| | | | | | | | | |
| | Market cap (mm) | $82 | | | $471 | | | $65 |
I am interested in the company for the following reasons:
- Cash position available as per the Sedar Finacial statement for Nov.30 2021 was $4,153,220 and considering a "burn" rate of $50,000 per month for drilling and other expenses ie. Test Battery Purification process
- Now having 2 drill zones, zone 1 and zone 6, I consider zone 6 as a bonus. but the more the marreier.
- Low # of Shares outstanding 69,296,287 as compared to Mason 136,296,585 shs @ .60/shs :Northern Graphite 81,583.262 shs @ .80/shs and Noeveau Monde 55,216,217 shs @ $8.11/shs
Like most investors, I was frustrated about the slow News Updates but we can't control the weather and road conditions as per News release on the Drilling Program.
As always Do Your own Due Delgience and these are my opinions only