ASX:KNL Kibaran – graphite in Tanzania

9/3/15

Corporate Snapshot

Market Cap (as of 9 March 2015): $22M (fully diluted) 24.3M
Share Price: $0.16
Cash @ 31 December $ 1.9 M

Balance Sheet
Assets @ Dec 14
1.9M cash

=$0.01 Cash/NTA per share

EBITDA Fcst 28M for full year (based on scoping study)

PE – Fcst – 1 (based on estimated $25M NPAT)

In My Honest Opinion:
what they do:
Graphite explorer
JORC: 22.7T @ 9.8% for 2.2MT contained graphite
The Good
Offtake agreements
favourable pricing of graphite – currently very sexy
NPV from scoping study – 213M / payback 2.5 years with 27 mine life / low strip ratios 2.2:1
Opex Costs $489/tonne
$28M EBITDA Fcst

The Bad:
not enough drilling has been completed to given measured category in JORC
not much cash
Still a long way off
$56M capex

Other risks
Risks:
Country – Tanzania – relatively stable, infrastructure, mining friendly

Buy this because…: offtake agreements which may fund capex, most things are ok, getting capex funding is the big item to tick off and will this dilute the
however: still a long way off production, not sure if there will be any price catalysts anytime soon

Type of Buy: hold (longer term)

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