10-year low Mason has just finished selling off to a 10-year low ($0.13). Only plausible explanation is end-of-the-year tax loss selling in the face of pathetically low investor interest, but looks like the Santa Claus rally may now be starting. The recent corporate change of business plan is also something to consider. Could signal that management is planning to put their share of the Lac Gueret graphite mine up for sale when the time is right. What’s 49% of the largest, highest grade graphite deposit in North America worth; $100 mm, $200mm, $500mm? We’ll have a better idea after the pea for the expanded 250,000 t/year Lac Gueret graphite mine, comes out in Q1/23. Will be interesting to see what graphite pricing they use. Prices below are spot prices in China from about a year ago and prices have since increased by about 10-20% and a premium for North American-sourced production should be expected. Hard to believe that Mason’s current market cap of $25 mm, is about the same as their cash + securities value ($13mm cash + $10 mm SWAN shares), which means the market currently considers that their 49% interest in Lac Gueret essentially has no value. Bizarre isn’t it, considering all the government and industry hype aimed at promoting a home-grown supply chain for critical battery materials.
The Mookster
Mesh
size | Price/t
(US$) | Lac Gueret; 49 % Mason, 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 | | |
| | Ore value | Total | $161/t | | Total | $29/t | | Total | $39/t |
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