What’s Happening to the Share Price of Magnis Resources Ltd?

What does Magnus Resources Ltd do?

Magnus Resources Ltd [ASX:MNS] is developing a world class graphite deposit in Tanzania, Africa. The deposit contains predominately the highly sought after jumbo flaked variety of graphite. It is of the highest demand due to its versatility. The company is on track to start production next year.
Deals have been done with Chinese companies Sinoma and Sinosteel to help develop and finance the project. Allowing the company to pay in product to these Chinese companies has meant they can get to production faster, without the need to raise extra funds.
China is the world’s largest graphite producer, but it has to import the high quality flaked variety of graphite.

Graphite is fast becoming the resource of the future with uses in energy storage, electric vehicles, solar energy and electronics from smart phones to laptops.
Then there is the potential uses of graphene, which is essentially a single layer of graphite. This is also causing great worldwide interest. Much research around the world is focussed on finding a cost effective way to produce graphene on a large scale.
This is because graphene is the thinnest, strongest material known to man, It can bend, is transparent, conducts electricity and can potentially make products such as flexible cell phones, and televisions. Graphene is also the world’s best water filter.
That’s interesting, but what is the chart telling us?

What does the chart look like?

I find it helpful to bring up a chart. The daily chart of MNS.


TD

Source: STEX


The chart is suggesting the company is making substantial progress in developing the project.

What now for MNS shares?

We could expect news to indicate the project is developing quickly and is on track for production next year.
With the Chinese funding the project, it looks like the company is on track and favourably placed to profit from any growth in worldwide demand for graphite.
Use the charts to tell you what is really happening within a company, before you read about it in the announcements. You can get started on that here.
Cheers,
Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.


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