DNI Metals Inc. (DMNKF)

[checkmate28]

DNI Metals. Bob Moriarty on DNI and his favorite tax loss buys

I think Bob used the share count without the last placement or typo. Market cap is near $8M Cad

Tax Loss Silly Season Ending
https://www.theaureport.com/article/2017/12/18/tax-loss-silly-season-ending.html

DNI Metals (DNI-C) started the year at $0.03 and has done quite well, hitting a high of $0.155 in August before settling down to $0.085 today. I wrote about them in April and pretty much told the whole story.(link below) But the story has gotten better. DNI had done a 50-50 JV with an Australian junior who had committed to a major drill program and 43-101 and then failed miserably. I visited the project in October but couldn't write anything until DNI had finished booting the Aussie junior.

DNI is a graphite company with a primary project in Madagascar even though they sell graphite on behalf of a Brazil company. Realizing they had a problem with their partner, DNI began a core drill program late this summer. It consisted of 28 holes and just over 1000 meters of core drilling. They released the first results from 12 holes on the 7th of December. They were excellent.

Graphite, cobalt and lithium are going to be in big demand and short supply for years in the future. DNI is bringing in a small test plant so they can deliver actual representative samples to prospective customers. The graphite is some of the highest grade and quality that I am familiar. The properties were in production, are near a port and the graphite is at surface. DNI will continue drilling and one day soon the market will understand the potential. With a market cap of under $4 million, DNI has a bright future in graphite.

Moriartys April write up
https://www.streetwisereports.com/pub/na/dni-delivers-profitable-graphite


Checkmate text. Best comparable is an Australian company called Bass Metals trading at a market cap of $36m or 4 times that of DNI. They have a graphite project about 10km down the road from DNI. Ive driven by it several times. There graphite is lower quality due to a lower altitude that is much wetter and with clay mix. DNI had an option to buy this before they choose their current property. Bass has a 6000TPA pilot plant thats nearly built now, whereas DNI's 6000tpa will take until June.

Currently DNI has 90 tonnes of their graphite samples out to battery up graders/end users. They are looking for a quality graphite source and to secure an offtake agreement. The market is desperate for the quality large flake graphite that I am confident DNI can supply. Its my opinion that DNI will have more than one offtake agreement very soon and possibly one of these companies will help fund a 20,000TPA plant that would take an additional year. Remember DNI graphite is Saprolitic and therefor needs no crushing and grinding process saving lots of OPEX and CAPEX.

As Moriarty said above "one day soon the market will understand the potential"