What the Analysts Say

WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.

Website: www.cpscapital.com.au

Company: MRL Corporation Limited (ASX: MRF)

MRF is making rapid progress towards achieving its strategy of producing high-value graphite from its Sri Lankan projects in the June Quarter of next year.

This strategy is underpinned by its ownership of several world-class graphite projects with a track record of production, known mineralisation and existing mining licences.

Sri Lanka hosts some of the highest-grade vein graphite in the world – the plus-90 per cent graphite as carbon grade of Sri Lankan vein graphite and its hard, thick crystalline structure could lend itself well to the production of high value battery grade spherical graphite.

The company recently embarked on a bulk sampling and metallurgical program aimed at determining the suitability of its graphite for high-value applications such as lithium Ion battery manufacturing.

Results of the test work are due this quarter and provide a likely catalyst for a share price re-rating.

MRF has also commenced research into the production of spherical graphite as a beneficiated mine product.

Positive results could see the company realise 5 times current prices on premium flake graphite.

MRF is currently drilling the Bopitiya/Pandeniya project, testing for extensions of vein systems associated with over 40 historical workings.

The aim is to prove continuity of each vein system at depth in order to assess and prioritise the pre-development of the historical shafts.

Initial results have been outstanding, with first assays achieving Direct Shipping Ore results as high as 98.5 per cent TGC (total graphitic carbon).

Website: www.breakawayresearch.com

Company:  Consolidated Tin Mines (ASX: CSD)

Consolidated Tin Mines recently entered into an agreement to acquire 100 per cent of Snow Peak Mining assets.

This company-making acquisition significantly enhances the calibre and diversifies the project pipeline whilst also providing the company with an operational one million tonnes per annum processing plant.

A DFS is well advanced and due for completion near the end of the year with first tin production targeted for 2015.

Consolidated Tin Mines has a quality portfolio of tin projects located in the Mt Garnet region of north-east Queensland.

Recently, the company announced it had entered into a ‘company transforming’ agreement to acquire 100 per cent of Snow Peak Mining’s (SPM) assets, significantly enhancing the calibre of both companies operations. The acquisition is subject to shareholder approval.

SPM has a quality copper and polymetallic project pipeline in its own right, together with the operational one million tonnes per annum Mt Garnet concentrator, located in close proximity to both of Consolidated Tin’s flagship tin projects.

A previously completed pre-feasibility study indicated significant cash flow may be achieved by converting part of the existing copper and polymetallic processing plant to process tin ore instead.

With CSD now seeking to acquire SPM’s entire suite of assets, opportunity exists to add capacity to the plant and process tin ore in parallel to the existing base metal concentrate production.

A Definitive Feasibility Study (DFS) is now nearing completion, with first tin production envisaged for 2015.

Encouragingly, the DFS is supported by a recently announced ‘information and technology sharing agreement’ signed with the world’s largest tin producer, Yunnan Tin.

Snow Peak also recently signed agreements with Wanguo International Mining Group in which favourable terms present risk free exploration for Snow Peak/CSD, providing significant regional and near mine resource potential.

Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.

The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.

The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.