RNU - GRAPHITE and Lithium OPPORTUNITY

[Aotea]

RNU starting to gather a head of steam after a decent retrace.
I expect them to steadily rise for the balance of this year.

[Aotea]

Am at a loss to understand how little interest our forum members have in RNU. To me its been a no-brainer to hold and the rise will be ineviatable in a green and electrified transition...

[CROESUS U.T.]

Similar thoughts about the lack of apparent interest in ASX, as assuming I'm an average member with about 50% of my holdings on the Big Island, yet less than 1/3 of the comments on the board are about Oz companies.
RNU has been pretty good for me.

[mcdongle]

Not really been a lot to talk about, just waiting for things to get going.

[silu]

I'm big on TLG as a vertically integrated graphite play. However I am aware that it all depends on the permits which might be a hurdle. I'm looking to diversify in the graphite sector so I'll look into RNU. Just out of curiosity over on HC they were talking about a company changing announcement and then despite being positive it dropped hard. What gives? Buy the rumour sell the fact?

[Aotea]

Silu, as you know I am big on Talga and expect the court decision to be positive early next year. The announcement yesterday was the PERP and was a big step forward which will enable binding offtakes to follow and secure Government funding support. The SP at the time I feel was factored into that decision being approved so no real jump on the announcement. The arse fell out of the market in last two days in the Li space and with market jitters RNU feel too. Its a long term hold and like TLG, I am very much invested in it moving to production. Am biased though having bought in in 2016 and had some solid gain in value.

This is an ever-evolving list, and drafted by a wise character called BombersMaid on HC called Top 40 Compelling Reasons to Invest in Renascor Resources (RNU)

Jurisdiction

1. Located in a Tier 1 Mining Friendly Jurisdiction in Australia (South Australia is a Top 10 Mining Destination Globally as per Fraser Institute 2021 Rankings)

https://hotcopper.com.au/data/attach...05c0996c81.jpg


2. Located in Sunny Australia where Mining Operation can largely operate 365 days a year, unlike some Graphite Projects in China / Canada / Europe that close during Winter

https://hotcopper.com.au/data/attach...5db858a001.jpg


3. RNU is a member of the European Battery Alliance (EBA) and the European Raw Materials Alliance (ERMA)
https://hotcopper.com.au/data/attach...4ef494c40a.jpg

4. Australian is a key Battery Minerals player in the Inflation Reduction Act, given Australia's Free Trade Agreement with the United States

https://hotcopper.com.au/data/attach...84d691d794.jpg

5. A True Tier 1 Mining Friendly Jurisdictionin Australia, with World Class Existing Infrastructure in place to support operations both at the Mine and BAM Facility i.e. Roads, Power, Water, Labour etc


Resource


6. World's 2nd largest Proven Graphite Reserve (Largest Outside of Africa)
https://hotcopper.com.au/data/attach...8f40e919b6.jpg


7. Australia's Largest Graphite Resource and Graphite Reserve

https://hotcopper.com.au/data/attach...0646b0c826.jpg


8. Siviours Unique (Flat and Horizontal) Geology results in Renascor potentially one of the lowest Cost flake producers outside of China

https://hotcopper.com.au/data/attach...0c6eecf438.jpg

9. Renascor's Flake Basket Mix contains a large percentage of Fines + Small + Medium flake that is the preferred feedstock for battery anode material
https://hotcopper.com.au/data/attach...407f48061a.jpg

10. Siviour Deposit is a World Class Deposit that Renascor has Only Began to Scratch the Surface of.

https://hotcopper.com.au/data/attach...f8184f5e3f.jpg

11. Significant Exploration Upside at Siviour and for regional potential in the Eyre Peninsula given Renascor's large Tenure Portfolio

https://hotcopper.com.au/data/attach...6496f9faec.jpg


Government Support


12. Attended High Level Meetings in South Korea with the South Australian Premier and Senior Management from POSCO
https://hotcopper.com.au/data/attach...8b1aa26940.jpg

13. Renascor is 1 of 29 Companies granted Major Project Status from the Federal Government

https://hotcopper.com.au/data/attach...336d17ee8d.jpg

14. Financing - $185m Loan from Export Finance Australia as part of the $2Billion Critical Minerals Fund

https://hotcopper.com.au/data/attach...eb6c100121.jpg

15. In-Principle further finance from the Clean Energy Finance Corporation"CEFC".

16. South Australian Govt support - "New Mine Status" state royalty reduced from 3.5% to 2% until 2026.

17. Renascor Resources identified as a “Selected Australian critical minerals project” in the Australian Government’s Resources Technology and Critical Minerals Processing National Manufacturing Priority Road Map.
https://hotcopper.com.au/data/attach...587b7a406c.jpg

18. Potentially fully funded for Stage 1 given the current bank balance of A$71m, a $185m Federal Government Loan from Export Finance Australia, and in-principle support received from the Clean Energy Finance Corporation

https://hotcopper.com.au/data/attach...85defb2827.jpg

19. Secured the lease to a Large 20ha site near Port Adelaide to house the Down Stream Battery Anode Material Facility direct from SA Water


Project Fundamentals


20. Four offtake MoUs for 60,000tpa of Purified Spherical Graphite (More than Double what was modelled in the 2020BAM Study) with Companies from South Korea, China & Japan (Including POSCO)

https://hotcopper.com.au/data/attach...b795f18c5e.jpg

21. 1 of only 3 Graphite Projects with a completed DFS in Australia

22. Renascor is on track to become the world’s first integrated, in-country mine and Purified Spherical Graphite operation outside of China.

23. Optimised Battery Anode Study (DFS) to model a significant increase in PSG Production, incorporate 30% higher PSG Yields, improved locked cycle flotation yields & higher graphite purities since the previous studies were completedin 2019 & 2020

24. Renascor has been added to the MSCI Global Index and the ASX All Ordinaries (Top 500 Companies)

25. BAM Site assessing use of Renewable Energy / BioGas / Recycled Water to have 1 of, if not the lowest CO2 footprints out of any PSG Facility Globally
https://hotcopper.com.au/data/attach...8427b29f4b.jpg

26. Renascors Graphite Tested at 2018 showed that +367mAH/g was achieved from 94% Siviour PSG + Mixed with 6% Binder
2020 Anode Test work showed that +644mAH/g was achieved from Siviour PSG + Mixed with a Binder and Dosed with Silicon, with minimal capacity loss through the cycle test

https://hotcopper.com.au/data/attach...1dd16932e3.jpg

27. Proven eco-friendly, HF-free purification process endorsed by leading global anode companies

28. Optimised by Dorfner Anzaplan in Germany – The Worlds Leading Metallurgical / Engineering Company
Purified Spherical Graphite has been tested and Proven at Bulk Scale at +99.95% (up to 99.99% TGC) in both Germany& Asia

https://hotcopper.com.au/data/attach...39b0547ab6.jpg

29. Significant Cash in the Bank today with A$71m at the End of the Q3 Quarter

30. Large Majority of PSG Basket will be produced at 15um, with a smaller portion at the higher valued 10um (As shown in Test work)

https://hotcopper.com.au/data/attach...a90a33769c.jpg

31. Entering Discussions and product Qualification with a number of key players in the Emerging North American /European Markets

https://hotcopper.com.au/data/attach...d97f6f8029.jpg


Graphite Market


32. Graphite Pricing is getting ready to go on a parabolic Run with the EV revolution continuing the gather steam. Graphite according to Benchmark Minerals + Credit Suisse is going to be the #1most important mineral to the EV revolution and also the most likely mineral to be in deficit by 2030 (Anticipated Shortfall of 2Mt by 2030)

https://hotcopper.com.au/data/attach...484c76bbb9.jpg

33. Graphite is the #1 Material by weight in a lithium ion battery today (regardless of chemical composition)

34. Natural Graphite Demand particularly for Fines / Small / Medium Flake expected to rapidly increase o
https://hotcopper.com.au/data/attach...0fa5d20dfa.jpg

https://hotcopper.com.au/data/attach...fa5c826df4.jpg

35. Purified Spherical Graphite Demand increasing over coming decade, deficit starting 2023.

https://hotcopper.com.au/data/attach...979727ec5b.jpg


Management Team


36. An A+ Grade Management Team – I have heard this a lot in my time in mining, yet from my experience with Dave he is a Top Shelf operator, knows the project inside and out, is invested in the company, always happy to answer Shareholder questions, one of the genuine good guys. There is 2 things I always look for in a Jnr Mining Coy: 1 is the Resource and 2 is the Management. Renascor is blessed with both.


Future Growth


37. Shallow High Grade Gold Project at Carnding (Soyuz).

https://hotcopper.com.au/data/attach...e0ddf37c52.jpg

38. Working with Sicona to jointly develop a next-generation lithium-ion battery anode material which combines silicon with graphite to significantly improve anode capacity and cell energy density.

39. JV with Rio Tinto at Marree Project - Binding Farm-In Agreement for Copper Project with a Tier 1Giant in Rio Tinto.
https://hotcopper.com.au/data/attach...92896e3225.jpg

40. Long term Plan to Establish further downstream processing expertise (and partnerships, as appropriate) to support development of fully integrated anode production.

And as of yesterday the approved PEPR!
There is a lot to like and I will be holding to 2030.

[silu]

Thanks for the research material Aotea!

[Azza]

Excellent stuff Aotea, yesterday was definitely a good day to have some RNU!

[JBmurc]

Been buying up RNU's neighbour ITM of late ... could well have a much larger Graphite resource in SA... drilling at present updates any day ... real 10x Bagger potential

[Aotea]

Well RNU hasnt been much chop lately...