ASX Shares What's looking cheap on the ASX?

Was the feared "hot tip" so I bought a tiny bit as a laugh with my dad (his broker said, "look I don't know, but it might do well". It promptly went down, so I doubled down. I then dug deep into the company, it's peers and the future demand. As the dots started to line up with company developments, I liked it more and more, so kept buying. I think I may have bought some at 4.5c - it's now 14c... I'm holding over 250,000 shares now... A Morgan's analysis and valuation at 20c/share helped with a big jump in share price, plus a good board appointment.
It's a once off crack at the big time only. I could have just walked into the casino and placed it all on 36, but so far its paying off.
No idea when I'm going to get out. Everytime I think of pulling out my capital, I buy more instead

I have a strong suspicion they are already in bed with Tesla, or another large purchaser. If this happens, it will go through the roof. Their announcements are read like a checklist of Tesla's graphite purchasing requirements.
In short...
Tesla's lead battery research is a Jeffery Dahn... his old phd student Daniel Buiel and ongoing acquintance is running Elcora's battery plant in North America. Elcora has secured graphite from Africa (presumably MTA) without announcing who. Elcora, MTA, Northern Graphite and two other companies teamed up (why! competing interests!) to buy a spherical graphite mill in North America, run by Daniel Buiel... Tesla has already said they will source their graphite from a North American process, with environmentally friendly and traceable production... there aren't really any other contenders. Tesla is expanding its Gigafactory, they don't have enough graphite and won't buy from China. They need 6-9 mines... we have 5 companies who have "suddenly" joined forces to channel through North America... Why? I thought it worth a punt that this paragraph tells us why.
There are still a few hurdles... a definitive feasbility study coming out hopefullt this week... an offtake agreement... a licence to mine... sovereign risk in Mozambique...
Furthermore, MTA have divested of all their other ventures to focus on graphite... they had promising Zinc and Ruby mines which they have given away... Why??
The director, executive board, new chairman (David Flanagan - with a big reputatino) and miners are taking payment in shares and options rather than salary... why, what do they know?? Institutional investors now buying it - Contango management (James Packers) company just became a significant holder... why?? MTA market cap is a long way behind their peers, with arguably better prospects.

dyor. All spec. And all mining companies sound like this per their announcements... making it a 'minefield' that I could get horribly wrong.

 

Are you really a surgeon? I think you must moonlight as an investigator! Move over Sherlock Holmes...

 

Here is an excerpt from SOL AGM recently.


Cheers,
Oracle.

 

I certainly follow all this with interest, just not financial interest.

Do you know what happened back in june/july 2014 where there was a big price spike and subsequent drop over the next 6 months?

 

This is always a good read for investors ..
Poseidon bubble - Wikipedia

 

Sept 1969 $0.80
Oct 1969 $12.30
Feb 1970 $280.00
1976 Delisted
Bubble bubble. Devil take the hindmost.

What regulations are in place for companies disclosing possible issues to the public? Or rather, what repurcussions are there? We are seeing this with Bellamys as they knew of news and slowdown of sales, and CEO and another board member "magically" picked the stock peak price and sold out back in August.

 

I've just dipped a toe, well a whole leg after further researching this last night following @Bran's post. This will be my first completely speculative holding, although it seems much less speculative than it was. Time will tell.

 

Do you, or does anyone, have an exit point or sell down strategy? (for MTA)

 

@oracle on SOL -- Santa run going on although SOL isn't really along for the ride, am still monitoring it as I still do not hold SOL at this stage and would like to purchase some.

 

Corporations Act 2001 - Wikipedia

 

And thier penalties will be miniscule compared to the profits they took in ...

 

Noooo!
The big things to alter the share price from here are an offtake agreement, and the licence approval (Q2 2017).
Fortunately my new order only partly filled, and must have been for the day only. I'm carrying enough.

My rough plan is to pull out 20% at 100% gain... gives me back my capital.. and let the rest ride.

 

What were your research thoughts/conclusions?

 

Nothing earth-shattering, well hopefully I guess but some things I read:

• Graphite market certainly stacks up as a good opportunity. I read 40% pa growth in demand year on year
• Mozambique has the richest graphite locations on earth
• MTA are focusing on mine sites that will support a 60 year mine lifespan
• The consortium teaming for the milling technology is available here . A test facility is now operational.
• From the Morgan's Report, it seems that MTA are also licensing Intellectual Property to be used in production. The information is a bit vague as it is not clear whether they are developing IP from their research or licensing IP from others. If they are developing IP and it gets used elsewhere, it might represent future royalty-based revenue streams.
• They will be rebranding to Battery Minerals Limited. Seems a natural move as they focus on production methods. Much of the recent activity seems to be towards transitioning to production.
• The recent raising of capital to prepare mine sites/camps and develop pilot plants. More positive steps towards production.

@Bran, has the feasibility report been released?

My holding currently represents 15% by weight of my portfolio. Hence the reference to dipping a leg instead of a toe. Not planning to go any higher than this. All of my other holdings are much, much more conservative.

Think I will take your approach and hope to quickly recover my initial capital with sufficient lifts in share price. Will ride drops with a degree of patience depending on the news.

 

No DFS, but should come out before the AGM in 6 trading days
I think the private partner is Pyrotek... that's a whole other story.
The name change is "because graphite is a mineral", but I think it is to suit their offtake partners, and distance themselves from the "Africa".
There is more too... if their zinc mine pans out, they will be free carried with proportions of the profit.
WIth their IP - this is being run by Daniel Buiel - the colleague of Jeffrey Dahn, of Tesla.
Their is great impetus for the options which expire in january to be in the money (15c)...
Rather than faltering at deadlines, they have been accelerating their timelines - this seems only possible with likely funding/offtake arrangements.
And more...

 

Interesting about the options...

 

To late for the initial jump, but surely still good value at the present price?

 

I've got an order in for more... but i'd rather see the price rise and the order not fill.
I think the DFS is priced in now. So waiting on offtake. But the offtake is the big IF.

 

Interesting ploy for the DFS report and the AGM to be held / released so close to the Xmas shutdown.

 

Announcement from MTA, drops the price to $0.105. Not sure how to interpret the attached. Am on my L-plates here. Thanks.