It is easy to look at the chart again and say we are too late I stay say this is a buy even at this price. I actually added more shares at $2 on Thursday.

For those that go to Trading Chief, there is many calculations of potential value and some great discussions about various parameters.

Here is my thoughts on a possible valuation:

Assumptions:

Finished pure graphite sell price: $8000 per tonne

Cost of processing: $1000 per tonne

Ressource size: 20M tonnes at 5% yields 1M tonne of finished product

Production per year: 100k tons for 10 years

Cashflow of $700M per year at a PE of 10 is $7B

Assuming we start mining in 2 years and use an 8% discount rate and $100M investment

Then we get a value of $5.5B

Divide that by 100M share float at time of production and I get:

$55 per share!!!

Now, anyone can feel free to give their pros and con of my assumptions or correct my math here but this is what I think has the potential to be and why the share price performance is so strong.

Sell at your own risk for those that own shares and for those that do not, I seriously suggest you look at this company more closely.

Glorieux