First Graphite - Small but Adding Value

First Graphite (formerly MRL Corporation) has been awarded an industrial mining licence for its Pandeniya project from the Geological Survey and Mines Bureau of Sri Lanka after having completed environmental certification. This is the first new underground mining licence granted in Sri Lanka for over 25 years. The company aims to complete final site works, including installation of shaft liner boxes, enabling first production in April. The mine is situated on a series of very high grade graphite zones suitable for a range of high tech and specific applications. The Sri Lankan graphite mining industry is based on relatively small volumes but very high grade graphite. A PortfolioDirect rating report for the company was published in November 2015. The company was classified as Phase II and given a 3+ rating on the five point rating scale. The PortfolioDirect valuation exceeded the market value of A$15 million at the time by approximately 40%. The company also displayed a modestly positive valuation momentum in coming years due to the limited capital needs associated with its planned phase up of production.