Armadale Capital Share Price (ACP)

Share Name Share Symbol Market Type Share ISIN Share Description
Armadale Capital Plc LSE:ACP London Ordinary Share GB00BYMSY631 ORD 0.1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.15 4.76% 3.30 1,946,772 11:43:52
Bid Price Offer Price High Price Low Price Open Price
3.20 3.40 3.35 3.15 3.15
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Gas Water & Utilities -0.41 -0.23 13
Last Trade Time Trade Type Trade Size Trade Price Currency
17:06:42 O 100,000 3.30 GBX
Related Shares
National Grid (NG.), United Utilities (UU.), Bilby (BILB), Modern Water (MWG)

Armadale Capital (ACP) Latest News (1)

Armadale Capital News

Date Time Source Headline
17/1/202007:00UKREGArmadale Capital PLC Exercise of Warrants and Issue of Equity
07/1/202012:05ALNCArmadale Capital Appoints Shikana Law CEO As Non-Executive Director
07/1/202011:03ALNCFAlliance News Flash Headline
07/1/202011:01UKREGArmadale Capital Plc Appointment of Non-executive Director
27/12/201913:00UKREGArmadale Capital Plc REPLACEMENT: Exercise of Warrants and Issue of Equity
23/12/201913:45UKREGArmadale Capital Plc Exercise of Warrants
19/12/201908:31ALNCArmadale Targets Commercial Production In 2020; Non-Exec Becomes Chair
18/12/201912:00UKREGArmadale Capital Plc Corporate Update
06/12/201916:09ALNCArmadale Capital Hires Castillo Copper Director Hall To Board
06/12/201907:00UKREGArmadale Capital PLC Appointment of Non-executive Director
More Armadale Capital News
Armadale Capital Takeover Rumours

Armadale Capital (ACP) Discussions and Chat

Armadale Capital Forums and Chat

Date Time Title Posts
17/1/202011:00ACP - ARMADALE CAPITAL PLC (New Start)2,420
20/12/201918:51ARMADALE CAPITAL PLC626
10/11/201618:51ACP - ARMADALE CAPITAL PLC (New Start)1,675
06/10/201619:19Armadale Capital plc5
20/11/201519:18LSE banned Audir817

Add a New Thread

Armadale Capital (ACP) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2020-01-17 17:06:423.30100,0003,300.00O
2020-01-17 16:04:183.19150,0004,777.50O
2020-01-17 15:57:203.2312,412400.91O
2020-01-17 11:43:343.3091,3663,015.08O
2020-01-17 11:39:173.4050,0001,699.90O
View all Armadale Capital trades in real-time

Armadale Capital (ACP) Top Chat Posts

DateSubject
18/1/2020
08:20		Armadale Capital Daily Update: Armadale Capital Plc is listed in the Gas Water & Utilities sector of the London Stock Exchange with ticker ACP. The last closing price for Armadale Capital was 3.15p.
Armadale Capital Plc has a 4 week average price of 3.05p and a 12 week average price of 2.15p.
The 1 year high share price is 3.85p while the 1 year low share price is currently 0.85p.
There are currently 403,563,230 shares in issue and the average daily traded volume is 3,369,606 shares. The market capitalisation of Armadale Capital Plc is £13,317,586.59.
Read Full Thread
Reply
08/12/2019
07:24		supercity: I hope there is no intention of selling, the company has told us endless times the aim is to produce around 50,000t per annum with an all in cost of less than $500t.It is high grade graphite which could demand a price of anywhere between $1500-2000t.In 2-3 years you could be looking at anywhere from 50,000 x 1,000-1,500t profit (yes that's $50m)Stick even a low pe on there and you can see the potential to hit 3 figures on the share price.It's all about the DFS confirming what they have already told us and getting the start up finance in place and then sit back for 1-2 years and reach for the stars.
Read Full Thread
Follow
Reply
21/11/2019
05:41		eliteinv: ACP share price few weeks ago was sub 1p and has risen 200% without any significant news, I mean no reselources added or upgrades. I m aware that a DFS is close, but how much of it it is already priced in, secondly what will happen to share price if DFS news is not good. Surely it will drop where mostly of the time it was round 1p.Just to remind you this has happen to GWMO, when price was round 2p, look where it is now.Anyohow good luck.
Read Full Thread
Follow
Reply
20/11/2019
10:50		jsd71: Our graphite peer Walkabout Res current share price 33c, In June after a run of excellent news updates it hit 44c.. that would make its mcap peak about $130 million, I can't see why Acp couldn't achieve similar as we're about to have our own flurry of company making news updates.. dfs, mining permit, binding offtake agreements, funding news & we have £1 million in funds.
Read Full Thread
Follow
Reply
01/11/2019
16:14		balbains324: In the event of a Conversion or Redemption at the Maturity Date and by way of example:- if the ten day VWAP share price of Armadale Capital is 10 pence, then the price at which the CLN may be converted would be 90% of 10 pence or 9.0 pence per Armadale Capital shareThese boys are expecting 10p next year!
Read Full Thread
Follow
Reply
01/11/2019
13:20		ileeman: @maverick You are very smart in connecting the two maybe the Lee in my username is a giveaway, who knew. And yes you are not wrong I have been calling ACP a dog for a while dodgy people involved, 1 to 1 warrants and now CLNs. Sure there are positives but negatives far outweigh imo. As for deramping from 1p, any small market cap company can go up with enough people ramping on twitter but I like to look at historical performance and nearly every company Paul Johnson has been involved in has collapsed. Can share price go up further? sure but will it last I very much doubt it and the issue of CLNs the other day proved that to me. I hope I am wrong, for your sake.
Read Full Thread
Follow
Reply
28/10/2019
13:41		meta1mickey: Well worth a listen this exactly sums up why and how ACP could follow the other ASX peers given it has higher grades and purities Explains why the share price could more than double from here very quickly too HTTPS://youtu.be/VFn-YSeqMjs
Read Full Thread
Follow
Reply
18/9/2019
10:42		meta1mickey: Really good peer comparison from twitter, at Walkabout peak its equivalent 18/20p ACP share ie after they delivered DFS and binding off-take Key to note at same stage ACP are at now WBT were still 3x our MCAp at £20m ACP project higher purity https://twitter.com/DragonsBreath99/status/1174218983190519808?s=20
Read Full Thread
Follow
Reply
01/4/2019
21:11		hamidahamida: ACP Share price in its Current state should be 8p if you compare it with other Companies at similar stage and size of asset:ARS's bkm copper project which has a post tax NPV (10) of $204m requires a capex of $182m with a LOM of 8yrs, after-tax net free cash ?ow of $387m (incl. royalties) & an after tax IRR of 38.7% payback period is 2.4yrs - current mkt cap £64m SAV lithium - post-tax Net Present Value of US$241 m, assuming an 8% discount rate. Return (IRR) of 48.6% Capex of $147.8m - current mkt cap £44m HZM's Nickel Araguaia stage1 post tax NPV (8) of $401 m requiring a capex of $443m - current mkt cap £32m MOD/MTR's copper - Capex requirement is $168m v pretax NPV (10) of $368m IRR 33% payback period of 3.7yrs - current MTR mkt cap £20m ACP conceivably be in production early 2020 as decision to mine is taken in early 2019 & its clear to see ACP's mkt cap should be in and amongst ARS (£63m), SAV (£44m), HZM (£32m) 8. MTR (£20m) respectively in its current state share price should be 8pArmadale Capital newly appointed non-executive director Paul Johnson explains what attracted him to the company, both from a career and investing perspective.https://t.co/wC3t10N7ez
Read Full Thread
Follow
Reply
20/1/2019
15:41		balbains324: Black Rock Mining Ltd (ASX:BKT) h labelled undervalued in a 68-page special research report by Simon Francis of Orior Capital.The company is developing the Mahenge Graphite Project in south-eastern TanzaniaBlack Rock published a definitive feasibility study (DFS) in October 2018, which followed the pre-feasibility study (PFS) completed in April 2017.The following is an extract from the report: Unjustifiably cheap. The project has a post-tax, unlevered NPV10 of US$895m, and an IRR of ~43%, both net of the Tanzanian government's 16% stake. The NPV is ~7x the initial capex requirement of US$115m. Despite these strong metrics, Black Rock's market capitalisation is less than 2% of NPV. Assuming total initial capital required of US$140m, 80:20 debt-to-equity funding, equity being issued at A$0.10 to A$0.15 per share, and a fair EV valuation, 12 months from now, of 30-50% of NPV, then Black Rock's EV could be US$269m to US$448m. This equates to a valuation of A$0.16-0.40 per share, ~4-11x the current share price.Opportunity knocks: In a sample of eight ASX-listed African graphite developers, there is only a US$16m difference in market capitalisation between the largest and smallest. The market is not differentiating between projects, meaning it has so far failed to take advantage of the opportunity in Black Rock.Compelling project, with substantial cash flows: The DFS envisages a three-phase project ultimately producing 240,000 tpa high-grade graphite. When completed, Black Rock is likely to be the 2nd largest miner of natural flake graphite in the world ex-China. Based on DFS figures of a US$1,301/t basket selling price, and US$401/t C1 costs, annual EBITDA will be around US$216m, equating to an EBITDA margin of 69%. The project is expected to generate US$313m in EBITDA over the first three years. This strong cash generation is expected to support a high-level of debt financing, limiting the dilution to existing shareholders.Risk mitigation a key part of the DFS: The DFS was compiled after more than 25,000 man-hours of work. It incorporates the results from a large-scale pilot plant, improvements in the plant design over 15 iterations, a decision to use dry-stacking, development of an ultra-high-grade graphite product, logistics tests on the Tanzania Zambia Railway Authority (TAZARA) railway, customer testing of Mahenge graphite products, and operational readiness work designed to provide a smooth ramp-up, and to address concentrate transportation. Management's approach has been to reduce as many risks as possible.Significant advantages, both geological...: Mahenge hosts the 2nd largest graphite reserve, and the 4thth largest JORC-compliant graphite resource globally. The resource is biased towards larger flake sizes. Strip ratios are low. Impurities are at a minimum. Black Rock has demonstrated the ability to produce amongst the highest quality products globally, without chemical interference. This means lower capital and operating costs, less environmental impact, and a differentiated high-value product. The use of dry-stacking means there is no need for wet tailings dams, and the risks they impose. There is no need to dispose of used hydrofluoric acid, which can be difficult....And geographical. Access to key infrastructure is excellent, and provides the Mahenge project with a long-term sustainable cost advantage. This includes the TAZARA railway line, which feeds directly into the port of Dar es Salaam. The port is an internationally vital trade link serving seven countries. It handles 95% of Tanzania's trade cargoes. There is frequent shipping to key markets in Asia. The Tanzania Electric Supply Co Ltd (TANESCO) will provide grid power. Excellent logistics ensures there is no need for unsafe several hundredkilometre truck journeys, no uncertainty as to available port capacity, no barging and reloading, and no need for expensive diesel generators on site.Phases 1 and 2 are already sold out: Critically, Black Rock spent the past year demonstrating a path to market. A large-scale pilot plant, an order of magnitude larger than the next, enabled delivery of certified samples to customers and laboratories. Feedback has been hugely positive. Three offtake agreements have been signed for a combined 205,000 tpa (in the third year), representing 85% of planned production, and an astonishing ~23% of 2017 global natural graphite demand. Notably, two of the agreements – those with Heilongjiang Bohao and Taihe Soar – are believed to be the two largest offtake agreements signed by any graphite company, either in production or development. The agreements cover a variety of end-use applications including expandable graphite, and energy storage. The agreements will enable Black Rock to establish branding in the energy storage market. The agreements are a testament to Black Rock's notion that Mahenge graphite has unique properties that make it highly desirable to end-users.Graphite demand growth accelerating: The births of the electric vehicle and energy storage systems markets have transformed the graphite market from a mature one, to one with rapid growth prospects. Both these industries are embryonic in nature, and growing at a terrific pace. There is also huge pent-up demand for expandable graphite for use in the foil and fire retardant segments. Demand for fire retardants is being driven by technological developments and more stringent safety standards in automotive, aerospace, and in building and construction after a number of large fires. Demand for natural flake graphite (excluding amorphous graphite) is expected to more than double over the next decade from ~630,000 tpa in 2017 to ~1.4m tpa in 2027. Even before accounting for any further curtailment in Chinese supply, the world could need the equivalent of three "Mahenges" to meet demand over the next decade.Chinese supply is under pressure: Supplies of large flake graphite from China are dwindling as resources are depleted. Combined with strong growth in the expandable market, China is now short of large flake graphite, and has started importing +50 mesh material from East Africa. Environmental controls, mainly aimed at restricting the use of acids in graphite beneficiation, are being more strictly enforced. Over time, purer graphite sources are likely to attract premium prices.Outlook for prices is excellent: The combination of new industries experiencing peak demand growth, and challenged supply out of China, the world's largest producer, suggest a strong outlook for graphite prices. Experience from the iron ore and coal markets in the mid-2000s, suggests that increasing Chinese imports (or decreasing exports), may have a significantly positive impact on market prices. As a result, there is an immediate opportunity in large flake graphite, with new suppliers of high-quality materials able to sell into a rapid growth market that is seeing shortages.Not all graphite is created equal; market segmentation is key: The market can be broadly divided into three categories;Large flake: The market for 80 mesh and larger has massive pent-up demand, and is supply constrained. Changes in building regulations and challenged Chinese supply suggest an increasingly tight market with strong price outcomes. There is a step change in pricing above 98% purity and 80 mesh.Battery grade: Typically, 150 to 80 mesh. The market has been demand constrained, though forecasts of exponential growth in the electric vehicle space suggest this will change quickly. High-grades, and spheronizing performance are differentiating factors. 'Dirty' concentrates containing impurities such as vanadium and others, will attract lower prices, and are at risk of stricter environmental controls in China. Selling directly to larger battery makers, where qualification can take years, is difficult. Establishing channels is critical.Refractory grade: Generally, smaller flakes and lower grades, used in steel making and other metallurgy. Lower prices, and essentially the market of last resort for a graphite company. (Some high-end applications require premium product). Black Rock has unearthed significant demand for large flake, high-purity graphite. The company has also established channels for the battery sector through offtakes with Heilongjiang Bohao (which supplies the German automotive industry), and Qingdao Fujin Graphite (anodes for consumer electronics). Black Rock's initial battery tests were conducted at a US-based, ISO-compliant laboratory. Battery cells produced from surface coated, spheronized natural flake from Ulanzi, exceeded 300 cycles, with a 94% recharge rate. The cells also had flatter performance curves than an existing commercial battery, indicating potential for longer battery life. This is a significant result that bodes well for future development. Few new projects are of global scale. The combination of strong demand, and challenged Chinese supply, has motivated a plethora of new projects in East Africa. Most of these are relatively small scale. The obvious hurdle many will face is completing a detailed DFS study that will be necessary to secure funding. Black Rock has set the bar in this regard. Further, many projects seem focused on the electric vehicle revolution. Though exciting, the market is currently small, and qualification periods, as for anything in the automotive sector, are long. Companies focusing on this space will need to find other markets to sustain themselves through this qualification period. It seems likely that over the next few years, supply from East Africa will become dominated by two large producers in Syrah Resources (SYR.AX), and Black Rock, with a number of smaller players serving niche markets.Tanzania: Tanzania's reset of its legislative code in 2017/18 negatively impacted risk perceptions, and the capacity to raise debt finance from traditional sources, and hit share prices. Yet over the past year, Tanzania has made great strides. Companies report that engagement with the government has been positive, and that projects that contribute positively to Tanzania's development are being approved. Black Rock expects its mining licenses to be approved in early-2019. The country has a fast-growing economy, benefits from a young and educated workforce, and there is rapid investment in infrastructure. The government's vision is for Tanzania to be semi-industrialised (manufacturing represents 40% of GDP) by 2025. In summary, the Mahenge graphite project has been thoroughly conceived. It boasts significant and sustainable natural advantages, it stands to benefit Tanzania directly through shared ownership, upgraded infrastructure, and increased employment, and it looks like coming on stream into a period of peak demand growth. Consequently, it also seems likely to reward shareholders.
Read Full Thread
Follow
Reply
07/6/2016
09:34		hamidahamida: Armadale capital the next big stock to fly according to these guys Is Graphite Set to Make Waves on the AIM?The Next Small Cap presents this information for the use of readers in their decision to engage with this product. Please be aware that this is a very high risk product. We stress that this article should only be used as one part of this decision making process. You need to fully inform yourself of all factors and information relating to this product before engaging with it.Graphite is making headlines and creating significant market interest largely on the back of its integral part of lithium ion batteries in electric cars.The world is shifting to electric cars at a quick pace, driven by the likes of Tesla and traditional car makers fast realising that the game has changed.Beyond just electric cars, lithium ion batteries are expected to feature prominently in the next wave of consumer products such as mobile phones, laptops, power tools, and medical devices.What this means is a rise in demand for graphite given its use as anode material in lithium ion batteries – and therein lies the opportunity for investors.It is no wonder then that small cap explorers are jumping into the fray – we have seen many mining juniors launch very successful and high growth graphite exploration campaigns on both the TSX and the ASX – but strangely this buzz has not fully arrived on the AIM – yet.Armadale Capital (LSE:ACP), a resources investment company currently building a strong commodities portfolio in Africa, is one of the few AIM listed companies out there with its hands on potentially high value graphite ground, in an emerging exploration hot spot.ACP is set to add the Mahenge Liandu Graphite Project in Tanzania to its portfolio via a recent heads of terms agreement struck with the project vendors.The important thing to note here for ACP and its shareholders is that the Project is located right next door to emerging ASX listed graphite explorers Kibaran Resources (ASX:KNL) and Black Rock Mining (ASX:BKT), both valued at multiples of ACP's current market cap.Both Kibaran Resources A$41.1M (£20.29MN) and Black Rock Mining A$13.97 (£6.9MN) now have grown significantly on the back of their graphite projects surrounding ACP's new project.Kibaran has bagged binding offtake agreements to the tune of 30,000 tpa, including 20,000 tpa with ThyssenKrupp – the €11.18BN multi-national conglomerate – validating the quality of the graphite in these parts. ACP represents a compelling graphite opportunity for the small-cap UK investor, currently capped at just £1.43M.The Aussie explorers around ACP confirm that there is a growing market for graphite coming online, and if you can strike some significant graphite mineralisation, things can move very fast.Before we go too far, it should be noted that for political and social reasons, this is a very high-risk stock. Getting mining projects up and running in countries such as Tanzania is no simple feat, and there may be challenges ahead.The growth in the world's need for graphite has convinced dozens of companies to pursue its exploration around the world......and ACP is an early mover defining this changing trend on the AIM market.Armadale Capital plc If a host of tiny Aussie companies can get their hands on quality graphite tenements in Africa, and raise their valuations on the back of the lithium battery revolution, can Armadale Capital (LSE:ACP) repeat the form in the UK?We certainly think so given the impressive tenement package ACP has snagged, and the positive initial results already seen.ACP is right next door to its higher valued Aussie counterparts Black Rock and Kibaran, and within the same geologic units. Take a look at the map below, for further evidence of just how close they are.We will look at the map in more detail further down, but given the company's position set amongst a hive of exploration, and of course its tiny market cap, with ACP, we think we've found a strong candidate to become a significant UK-based graphite starlet over the coming years, and emulate its Australian small-cap cousins in the meantime.Of course, it is early days here, due diligence between the project vendors and ACP is underway now, and ACP will likely need to raise some funds to progress with exploration. But when that exploration has the potential to transform the company to a market cap of multiples of where it is today, especially if it can go and define a significant graphite resource, it makes this stock a compelling proposition.If you're looking for a brief introduction to graphite, check out this video:Lithium-ion batteries gobble up incredibly high amounts of lithium, graphite and cobalt – its three key ingredients – and given the anticipated mass adoption of electric cars, there has been significant pressure placed on supply chains for these materials.Demand for graphite for use in lithium batteries, is set to go through a significant upscale between now and 2020 that will see battery manufacturers offtake 250,000 tonnes per annum (tpa) by 2020 - compared to 80,000 tpa today. That's an increase of over 200% over the next four years.Led by US-based Tesla and Chinese-based BYD (partially owned by Warren Buffett), it's clear that sales of electric vehicles (EVs) are increasing exponentially. Here's a taster of the growth in EV sales:Are we seeing the initial sparks of a graphite market boom on the AIM?Graphite prices have perked up, although it is still too early to tell exactly what kind of specifications most graphite end-users will be looking for – what we do know for sure, is that the world is going to need a lot of it, and a number of offtake deals for African graphite have already been sealed.In terms of company valuations, graphite explorers on the ASX and the TSX that have defined significant graphite resources have been trending upwards for the past 12 months or so, on the back of greater investor awareness of this impending commodity sea change.In the UK, graphite is a very niche part of the commodities sector, with barely a handful of companies putting their feelers out for graphite... so farBut if we take a look at Commodities Central - otherwise known as Australia - it would seem graphite is getting significant traction.Take a look at how Syrah Resources (ASX:SYR) has performed over the past 12 months:Syrah is Australia's largest graphite explorer currently valued at A$1.25BN (£612MN).Syrah's story began with humble beginnings via the acquisition of the Balama Project in Mozambique in 2011. Since then, Syrah has made one of the world's major graphite discoveries, diligently progressed exploration and published a completed Definitive Feasibility Study (DFS) last year.This is the type of progress ACP is hoping to emulate in Mozambique's next door neighbour Tanzania, with the added bonus that ACP still has its Congolese Gold Project waiting in the wings just as gold prices have started inching their way north again.Whilst a Syrah like valuation is a long way off, ACP's neighbours point the way for what could be in store for this stock in the short term.ACP's neighbours such as Kibaran Resources (ASX:KNL) and Black Rock Mining (ASX:BKT) now have significant market caps from where they started being A$41.1M (£20.29MN) and A$13.97 (£6.9MN) respectively.Kibaran recently announced it had executed an off-take agreement with one of the world's leading commodity trading companies ThyssenKrupp, for an exclusive long-term commercial agreement between the parties for the sale of a minimum 20,000 tonnes per annum of refractory grade natural flake graphite in Europe, Turkey, Russia, Ukraine and Korea.Remember ACP is currently capped less than £2M (at the time of writing).Here at The Next Small Cap, it's in our DNA to keep our antennae trained for small undervalued companies such as ACP who may have a rather bright future, especially considering its position.To give you an idea of how quickly graphite stocks can grow, take a look at Volt Resources (ASX:VRC) – we have been telling our readers about VRC since February 2015 when it was trading under the ticker code ASX:MOZ and was capped at a similar level to ACP's current value.The company's share price has risen over 630% since it first entered graphite exploration and ticked all the boxes to make a major graphite discovery in Tanzania:Back when we first wrote about VRC, it was in the very early stages of project development, with a very small market cap. ACP have a hold on something very similar in a similar early stage – and we see striking similarities between ACP and where VRC was 18 months ago.Of course, ACP will need to fire up the drill rig in the near term in an effort to try and hit some of the mineralisation that has caused ASX:BKT and ASX:KBN's market caps to stir, and we will find out a whole lot more over the coming months.Suffice to say, this is still an early stage play and caution is required if considering this stock for your portfolio.Operating in a graphite wonderland in East AfricaEast Africa has more graphite locked up under its ground, than the rest of the world combined.The Cabo Delgado region contains the world's largest known schist of graphite mineralisation in the world with its veins stretching from Mozambique, further north into neighbouring Tanzania and west into Malawi. Here's a map of the region, and where ACP's latest project sits:Zooming further in, here is where ACP will be exploring – the Mahenge Liandu Project, which consists of 2 tenements covering 29.9 km², adjacent to the town of Mahenge.As you can see above, ACP has snagged prime real-estate right in the middle of existing graphite projects that have completed advanced studies: a Bankable Feasibility Study, plus offtake agreements in place for Kibaran (the orange ground on the map), whilst Black Rock has completed a positive Scoping Study (the green shaded areas).Nearology factor in play for ACPAs we have indicated, one of the major plus points for ACP's newly acquired tenements is their close proximity to existing (and defined) graphite resources in the vicinity.With ACP now settling into its new digs, let's take a look at the Tanzanian graphite pool compared and contrasted. You can see the stark differences in valuations and the gap that ACP are looking to grow into over the coming months:And here's the entire East African hoard of graphite explorers, compared by market cap. As you can see, ACP is the equivalent of a tadpole swimming with whales in the form of Syrah and Magnis.Note, ACP's market cap shown above is actually bigger than the current value, which at the time of writing is actually around the $2.55M AUD mark.For small-cap investors, ACP represents an early-stage stock packed with potential and the real possibility of walking the African graphite development path already carved out by its peers.ACP's tenements are surrounded by over 150 million tonnes of "JORC'd" graphite resources which raises hopes of ACP's exploration eventually defining a strong resource in the hundreds of millions of tonnes – and that would result in a rather large share price appreciation.Of course, exploration hasn't begun in earnest yet, so caution is advised when making an investment, please consider your own personal circumstances and risk profile.The roll-call of graphite explorers in East Africa is expanding at a rate of knots, and despite any production being some way away, the share price performance of most of the stocks listed above has outperformed major index benchmarks in both Australia and the UK – let's take a look at Volt and Magnis for instance:The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.Volt Resources (ASX:VRC) first started its graphite hunt in Mozambique, before moving to Tanzania last year.A larger player in Tanzania is the fully diluted $337MN-capped MNS which is slightly further ahead in its development than the rest of its peers.Take a look what Blue Ocean Equities has to say about MNS in research note published in May 2016:Indicating how the path to successful graphite mining goes, Blue Ocean analyst Steuart [sic] McIntyre, sees MNS pushing on from its current price of $0.78 per share, up to as high as $1.40 - that's a gain of almost 80% from its current A$312M (£156M) market cap. In the report, Mr. McIntyre cites "above average flake size" and "favourable metallurgy" as the two standout factors that could deliver superior margins and performance.At the same time, analyst predictions are no guarantee to eventuate – so don't consider just these reports when you are investing. Consider your personal circumstances and seek professional advice.ACP is exploring in East Africa – which is synonymous with jumbo flake and natural graphite that can compete with its artificial rival, but at lower prices. MNS is looking to move into production over the next 12-18 months and is anticipating strong margins by producing high-grade natural graphite - whilst early days, ACP would hope to do something similar in the not too distant future.Initial exploration results on ACP's project indicate Total Graphitic Carbon (TGC) grades of 13%-24% TGCDespite just announcing its intention of acquiring the Liandu graphite project, ACP already has some historical drill data to play with.Reconnaissance mapping done late last year defined a mineralized trend >1.5 km in strike length and up to 500m in width. From this initial mapping, ACP has been able to obtain some initial drill hole data as an indicator of future potential.Three RC drill holes drilled late last year by the previous vendors showed intercepts of 24m @ 12.9% TGC, 5m @ 21.5% TGC and 10m @ 6.54% TGC.ACP's next step is to initiate a comprehensive work program at Liandu, set to kick off in July; including mapping, trenching, RC drilling, DD drilling, metallurgical test work, and resource estimation – so there should be plenty of news flow for this stock in the near term.As assay results come in, ACP could see its valuation rise as long as the TGC grades are sufficiently high and the mineralisation extends.On the flip side, if its exploration results are deemed insufficient, ACP's valuation could fall, so seek professional advice when seeking further information about this stock. It's all part and parcel of commodities investing, and it's why we would recommend all potential investors to do their own research if considering this stock.Liandu scheduling puts ACP on track for a Defined Resource in early 2017One of the most exciting times for any Resources company is the build-up to, and publication of its official JORC Resource.To give you an idea, Black Rock Mining, ACP's much higher valued neighbour, defined 80% of its resource in just 8 months.ACP hopes to prove up a JORC Resource in early 2017 which it can then use to secure offtake agreements, institutional funding and possibly a joint-venture partner depending on the Project specifics.ACP is currently gearing up to get started in the coming weeks......but in less than 12months, we could see a JORC Resource at Liandu thereby helping to revalue ACP significantly.Not forgetting the glitter of Gold in the CongoWith fast moving times ahead for ACP in the graphite stakes, one could be forgiven for forgetting that this investment company also has an existing JORC'd gold resource that's on the cusp of entering production.We are of course talking about the Mpokoto Gold Project in the DRC, and the company is currently awaiting a $20M USD funding package to be finalised.Let's take a quick whiz through ACP's Congolese asset, as this project also has significant upside potential for later this year.Mpokoto has continued to demonstrate it is a robust low cost gold development project with attractive fundamentalsHere are the highlights of APC's Mpokoto DFS, published in February:Recent auger drilling and qualitative sampling of 150 auger holes at Mpokoto shows extensions to previously identified mineralisation, to both the north-west and south-east. This tidy bit of news means ACP's resource at Mpokoto can grow even larger once ACP does more fieldwork.The objective of the overall exploration programme is increasing the planned life of mine, which currently stands at four years for Phase 1 production, expanding the current Total Resource beyond the current 678,000oz.Since the start of the year (YTD), spot gold prices have risen as high as $1,306/oz., a gain of 23% since January.The higher gold price goes, the more economically viable ACP's Mpokoto Project becomes without ACP lifting a finger.ACP's Feasibility study assumes a gold price of $1,250/oz., but has an expected production cost of $792/oz. So despite gold suffering from a stronger US dollar since 2013, the good news is that ACP can remain competitive even at the lowest gold price we've seen since 2013 ($1,046/oz.).The only outstanding issue is the US$20MN required to construct the necessary infrastructure at Mpokoto which ACP hopes to do imminently after the necessary vis-à-vis due diligence is done between ACP and development partner A-MCS.Key components of the capital cost include US$8.25 million for the processing plant, US$3.75 million for associated infrastructure and US$8.5 million for other infrastructure.The US$20 million to be invested in ACP by A-MCS includes financing provisions to fund the processing plant as well as a mining contract to govern provision of mining services moving forward.In total, ACP has 4 mining licenses valid for 30 years which means ACP could see even further exploration upside at the Mpokoto Project.ACP's exploration target is 2.4-3.0 million tonnes grading 1.25-1.5 g/t Au, according to the company. ACP also estimates this should yield an additional 120,000-150,000 oz. to the 225,000oz already earmarked.With gold and graphite in hand, ACP is pushing on developmentWith its priorities now squarely in focus, ACP is on the right track.Gold from the Congo is in its grasp, while its newly acquired graphite project in Tanzania has all the early signs of being a strong high-value asset.ACP has a diversification mantra built into its operations which should give investors some comfort considering the operational space is Africa - which does carry additional risk compared to more stable parts of the world.Furthermore, ACP can take heart from seeing lots of plucky Australian explorers, previously of a similar size to ACP, progress their graphite projects to much higher valuations over the course of the last 12-18 months.With virtually no early stage graphite projects being considered by currently listed AIM companies and given ACP's latest acquisition, the stock could prove to be rather undervalued at current levels.It's worth remembering that the band of Aussie explorers including Volt, Magnis, Kibaran and Black Rock, have all achieved substantial re-ratings as progress towards production was demonstrated to investors.ACP could be a good stock to leverage the impending graphite/graphene revolution that's already seen several explorers reach multi-hundred million dollar valuations without a single gram of production.Can the graphite hype make an antipodean shift over to the UK? We think there is a strong chance.It would seem those that take early positions could be the first to reap the commercial benefits once graphite begins to be sold in bulk to audacious lithium-battery manufacturers.
Read Full Thread
Follow
Reply
Armadale Capital share price data is direct from the London Stock Exchange
Your Recent History
LSE
ACP
Armadale C..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20200118 08:20:09