DNI Metals 2 million shares at .08 traded today. Traded all thru Dec Jan near .03 while I posted here to buy it. This tiny company has a nice story and I would have made it a pic 3 for the contest if it qualified at over .10 Real news hasen't even started flowing. MC still only 3 Million
Drill going to land on shore any day and they will have a graphite resource fully drilled in a few months time with NI 43-101 Resource and PEA in hand in 6 mths or less from today. This is all due to the graphite being contained in Saprolitic ore. Loose weathered ore can be drilled, scooped and thrown in the float process where the graphite floats to the top when a reagent is added. This means they dont have to dynomite hard rock like all the north american companies and they can skip the crushing. This leaves them with operating cost thats are about half the costs of the Canadian Graphite companies. Bulk sampling has shown this to be near the highest grade purest large flake content available.
Next big advantage is permitting. North American Graphite companies with huge Market caps relative to DNI are not permitted. DNI is fully permitted.
CAPEX for DNI to build a 12000 TPY processing plant is about $15M Most Canadian companies are sitting with PEA studies asking for between $100m and $150m because they dont have Saprolite ore.
With this high CAPEX and OPEX, these so called current best candidate for future graphite developers aren't going to make it. The market is going to wake up.
With DNI, they can get started with their 12000 tonne plant. There costs will be near $350. Shipped to the US for less than $500/ton. Still half the COSTS of the Canadian wannabes.
Graphite production is just one prong. Their currently cash flowing now, by wholesaling graphite from Brazil to Great Lakes Graphite with an off take agreement. This business while not earth shattering is briskly picking up and profitable. The main key here, is to develop a network of customers and offtake agreements, so that when it comes time to go to the bank for financing, they can show the ability to attain customers and sell their products.
Additionally they have a small gold royalty and the Buckton base metal deposit that at one time had a PEA with $1.3 Billion CAPEX to put in production. Moose pasture for DNI, but they own it and with base metals moving up, its going to be worth something again.
Another probable future catalyst is the Lab, but thats on the back burner for a minute. I think with a little DD of the press releases emphasizing the progress so far, one would have to say, this is an interesting little company and Management has done a good job, making progress at little costs to share holders. Little risk when you look at the salable assets and near zero debt.
Not for most here since its been so illiquid. Thats because its been ground floor. Things should change when the resource is proved up. Should be looking at a 4 -5 bagger from Dec 2016 to fall or by end of this year.
Checkmate28
AI
