DNI.v DNI Metals +120% (Graphite developer, wholesaler and almost with BANK FINANCED lab facility. Still at about a $3 Million Market cap set to bump cash flow and profits.
I spoke with mgt and was impressed with the character, knowledge and experience the mgt has (check). They laid out a plan and have followed it to a tee and then some (check). Plenty of shares have been available at a $ 2Million (Canadian$) market cap valuation.
DNI has 3-4 current and coming revenue sources.
1) DNI METALS INC. (DNI : TSX-V) FOR RELEASE – March 23, 2015 DNI Metals Inc. (“DNI”) announces today that it has entered into an 5 year supply agreement of natural flake graphite concentrate, to Great Lakes Graphite Inc. (“GLK”) What other North american graphite company is selling graphite now? And from a $2Million MC valuation. More offtake agreements/revenue should be forth coming here. These relationships will pave the way to off takes from their Madagascar property.
2) DNI was able to buy mining claims in Madagascar, then get full mining permits and began to develop the asset. The project is 50 kms from a world-class port on a paved road. The graphite is hosted in loose material called Saprolite. The capex is much lower (maybe 90% lower) than hard rock projects found in North America. The Opex will also lower. Negative strip ratio. Dynamite crushing and grinding steps are skipped. Labor is pennies per hour. Already ahead of all the other wannabees in North America? This could happen fast.
3) DNI is working with another company that has a team of sales people, DNI sources the graphite and gets paid as middleman/wholesaler. In 2015 DNI shipped 22 tonnes, the goal for 2016 is 3,500 tonnes and for 2017 the goal is 10,000 tonnes.
4) DNI acquisition: fully permitted 37K SgFt Lab and Test Facilities, will save DNI time and money plus can be used to upgrade DNI and other customers graphite to produce micronized or battery grade spherical grade graphite. Currently cash flowing with lots of spare capacity. Should close before the end of December. Best part, because your waiting for the dilution your not going to see. This was 75% financed by a major bank and lender take back (check check check) What $1.5M USD MC company finances nearly twice its MC without equity financing?. There is currently a non dilutive extra $3 Million offering for working capital and upgrades.
Ive been DDing this for about 9 months. Lot of progress coming. DNI is systematically and strategically building an industrial minerals mining company. Nobody knows this company yet. These guys are sharp and going to get it done. Graphite traders going to be asking, where did DNI come from? 2016 going to have a lot more progress. Mark it.
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