Replies to post #11956 on Nextsource Materials Inc (NSRCF)

[spartex]

Yeah, this Seeking Alpha guy continues to make all kinds of unsubstantiated negative claims below. Must be a hired gun by someone.

I thought there was a paved road going in (possibly already in) that the country has completed, and could be used by Energizer. "And lack of downstream logistics?" What is wrong with lithium batteries and other energy storage related products requiring flake graphite that are starting to grow quickly? The company is currently having their samples analyzed for quality by various downstream businesses. And just saying creating a mine in Madagascar is a high risk is nonsense, as there is already a successful mines including recently started Ambatovy nickel and cobalt mine. http://www.ambatovy.com/docs/

PR on infrastructure enhancements near Molo.

http://www.marketwired.com/press-release/energizer-resources-provides-update-on-infrastructure-enhancements-near-molo-graphite-otcqx-enzr-1939085.htm


Therefore Energizer still has an enormous amount to prove before I would become interested in investing. The two points that management has to address include:
•Shipping logistics: I want to see exactly how the company is going to deal with these dirt/mud roads. Simply adding a higher cost to shipping isn't enough--there needs to be a plan. Frankly I don't see how such a plan could make sense without commercial road construction, but I am certainly open to other possibilities.
•Downstream logistics: Energizer needs to broaden its study of value-added products, because I don't see how the company will get financed without doing so.

Until we see these developments I am fairly convinced that Molo is not a viable project in spite of what the numbers might say. Even if it is, however, investors still need to consider the project's other shortcomings such as the high risk of mining in Madagascar or the fact that 53,000 tonnes of graphite per year is a lot for such a small market, and the company is at risk of pushing prices lower or failing to sell all of the graphite it produces.

[DT Books]

Maseraticoupe - I'm familiar with that article and read it on my commute this morning.

My company was bashed by them too, but they went on to say if it works out our stock will be "touched by the hand of Midas". This is how they analyze growth companies. Energizer is a growth stage company and therefore THERE ARE ONLY FORWARD LOOKING STATEMENTS thus far. There were positives in that article. If the gravel/clay roads are muddy/flooded, then pavement is only needed for those specific points along the route - not the whole 100 mile stretch. The analyst's worries seem minor to me.

I merely want to spur discussion on worse case scenarios for shareholders, and seek to understand why people aren't accumulating on the open market at this discount to NPV. It would help to lower current long-term holder's avg. cost basis as well.