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Business Description
South Star Battery Metals (“STS”, “company”) is focused on advancing its 100% owned Santa Cruz flake graphite project in Brazil to production. It is located in one of the most active graphite producing regions in the world, with three operating mines and several development / exploration projects.
Website: https://www.southstarbatterymetals.com/
Will South Star be able to obtain financing to build the pilot plant. and is it still a BUY rating?
Thank you, Malcoclm
Thank you for the question. Although we are not in a position to speculate on management’s ability to raise capital, we estimate a CAPEX of $5 – $7 million for a 5,000 tpy pilot plant. The company is currently working on a PFS, which when completed will give us more precise information on the expected CAPEX and OPEX. STS’ fundamentals have not changed since our previous update report in August 2019, and therefore, our BUY rating, fair value estimate, and risk rating are still valid.