RNU - GRAPHITE and Lithium OPPORTUNITY

[Joshuatree]

Thanks and good luck.Too risky for me.

[SCHUMACHER]

Your welcome- Not risky IMO - the risk is lack of research and understanding about this high grade low hanging beauty so here are some more facts from the experts - DYOR this could be one of the great finds on home soil - way undervalued to its graphite peers - take a look at the latest research report - first pass shows a grade and resource that is nothing sort of impressive and its trading at 1.9c - multi bagger in the making based on Over 80% of samples tested are large, jumbo or super‐jumbo flake size

http://www.renascor.com.au/reports

go to latest research report

■ RNU announced a maiden Resource estimate of 16.8Mt, of
which 6.8Mt, grading 8.1% Total Graphitic Carbon (TGC)
is Indicated and 10.0Mt grading 6.9% TGC is Inferred.
■ Within this, there is a higher grade portion of 5.9Mt
grading 10.0% TGC.
■ The ore-body is shallow and flat lying. Over 80% of
samples tested show flake size to be large or bigger.
■ RNU is on track for a scoping study by September. 2016.

Over 80% of samples tested are large, jumbo or super‐jumbo flake size
Petrological examination of high grade samples from RC drilling show over
80% to be high value large, jumbo or super‐jumbo flake size.***
Shallow, flat‐lying deposit
The Arno deposit mineralisation begins from 10m below surface, and the
ore‐body has an average thickness of 20m, so mining costs should be low.***
Enterprise Value $2.1/t of Resource, in South Australia; RNU looks cheap
Beer & Co’s analysis shows that RNU has a low value compared its peers,
which range up to $29.5/t of contained graphite.***

THIS IS WHAT THE EXPERTS ARE SAYING ABOUT THIS GRAPHITE DEPOSIT (Taken from BCP Equities research report in April 2016, also on the companies website )

We believe that RNU is trading at a significant discount to its peers despite having a bigger or better quality resource and is potentially the most commercially viable graphite deposit outside of East Africa. It is reasonable to expect RNU to be trading at least in line with the average in – situ valuation of its peers. It is for these reasons we are initiating coverage of RNU with a Speculative Buy recommendation and a price target of $0.06/share.

The first chart below depicts the size (x-axis in million tonnes) and grade (y-axis) of the ASX listed companies with defined graphite resources and the bubble size represents the enterprise value of the company. As obviously depicted there is only one company with a huge deposit with greater than 10Mt of contained graphite, SYR with 128Mt from 1.2Bt at a grade of
10.8%. One the second chart below we dialled into the smaller end of the group and focused on companies with measured and indicated resources. We have excluded the two companies with deposits with greater than 4Mt of contained graphite, SYR and MNS. As shown in this chart RNU has a significantly smaller enterprise value compared to its peers despite a comparable resource in terms of size and grade.

Given the drilling results to date it is realistic to see RNU not only increasing the size of the resource but moving a significant portion of the current inferred resource and any new resources into these
higher confidence categories.

VALUATION
RNU has quickly defined the attractive and scalable attributes of the Arno Graphite deposit. However, due to the early stage of development we believe that the implied in-situ value of the deposit highlights the undervalued nature of the company. We have identified twelve companies listed on the ASX with defined graphite resources. Within this group in-situ values of total resources defined to date range from $1.20/t to $26/t of contained graphite with an average value of approximately $11/t.
All the companies in the group, with the exception of one, have some of the defined resource in the measured and/or indicated categories and these are valued from $2.50/t to $60/t of contained graphite with an average value of approximately $30/t.