Vancouver, British Columbia, November 9, 2012 - Investment firm StoneCap Securities initiates coverage on Mason Graphite (TSXV:LLG), giving the company an outperform recommendation and a $1.40 target price. This would give investors a projected return of 100% from the $0.70 price at the time the report was issued.
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Mason Graphite is a new listing, having recently completed a qualifying transaction with a Capital Pool Company. The company is exploring and developing its 100% owned Lac Guéret graphite property, located in northeastern Quebec.
With 7.6 million tonnes grading 20.4% carbon as graphite, in the measured and indicated categories, it is one of the highest grade graphite deposits in the world. This current resource is based on approximately 2,150 metres of drilling, and is expected to grow significantly following the company's current 18,000 metre drill program. According to Mason Graphite, further exploration potential exists as the current mineral resource is based on exploration of only 17% of one well defined zone.
The company's graphite is 100% flake, which is highly desirable as it is the form that is most commonly used in high-value applications. StoneCap expects coarse flake pricing to remain strong as there is a dearth of this product in the market, which isn't expected to be fulfilled by supply additions in the coming years.
StoneCap stated, "Due to the high grades at Lac Gueret, we believe that Mason could be a bottom quartile cash cost producer when production begins" which StoneCap estimates would be mid 2016.
"Despite this important structural advantage, Mason currently trades at $14.42 per tonne of contained graphite versus its peers at $72.55 per tonne."
The company is trading at $0.65 and with 57 million shares outstanding is capitalized at $37 million. For more information, please visit the company's website www.masongraphite.com, call 416-861-1685 or email firstname.lastname@example.org..
For more information about StoneCap Securities or to obtain additional research, contact them at www.StoneCapSecurities.com.