Magnis Resources Ltd
Agreement with Tanzanian Government to progress on Nachu development: Magnis Resources Ltd.’s (ASX: MNS) stock surged 10.7% on March 09, 2018 after the group announced about its agreement with Tanzanian Government to progress on its Nachu Graphite Project. The agreement is on amendments to the Special Economic Zone (SEZ) licence that is granted to Magnis Technologies Tanzania Ltd (MTT), which is a 100% owned subsidiary of MNS. The SEZ license is for production of value added graphite products and is the only such license to be granted in Tanzania. The amendments are significant and a major value catalyst for MNS. Further, it establishes MTT as an approved graphite processor in Tanzania. Late last year, MNS secured a Sales Agreement for the supply of flake graphite with World Plastik ve Petrokimya Sanayi ve Ticaret, a division of the World Group for 25,000 tonnes per annum of flake graphite consisting of 15,000 tonnes per annum of Super Jumbo and 10,000 tonnes per annum of Jumbo from Nachu project or any other mine that produces graphite as per the requirement.
Meanwhile, the group’s net loss after tax of the consolidated entity for the half-year ended 31 December 2017 narrowed to $3,144,524 from 2016 figure of $5,960,816. This loss was also mainly due to expenditure involved in the land valuation procedures and tenement costs for Nachu, consulting, research and development costs involved in Lithium Ion Battery technology. The group has focus on three proposed LIB giga-factories that are based in New York USA (15GWh), Townsville Australia (15GWh) and one in Germany (30GWh). MNS has also highlighted that first production at New York factory is expected in 2019 with production in Germany and Townsville indicated for 2020.
It seems the small-cap graphite producer is coming back on the track and we give a “Hold” recommendation on the stock at the current price of $0.465
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