. andresr/E+ via Getty Images
andresr/E+ via Getty Images
Welcome to the April edition of the graphite miners news.
April saw flake graphite prices continue to sneak higher, new support announced for the EV supply chain and critical metals sector from the USA & Canada governments, and industry insiders warn of looming EV metals supply shortages. There was also plenty of good news from the graphite juniors.
During the past 30 days, the China graphite flake-194 EXW spot price was up 1.46%, and is up 28.1% over the past 360 days. Note that 94-97% is considered best suited for use in batteries; it is then upgraded to 99.9% purity to make “spherical” graphite used in Li-ion batteries. The spherical graphite 99.95% min EXW China price was up 0.18% the past 30 days.
Fastmarkets (see below) shows Europe graphite flake 94% (+100 mesh) prices were slightly higher reaching US$1,400/t. China prices are US$1,010/t.
Fastmarkets graphite prices the week ending April 21, 2022
In an April 25, 2021, report from Leading Edge Materials, they stated:
A recent price assessment produced by Benchmark Mineral Intelligence for the Company shows average pricing in 2020 for uncoated natural spherical graphite at around US$3,000 per tonne and for coated natural spherical graphite between US$7,000 per tonne (domestic China and non-EU) and US$12,000 per tonne (high-end applications), with an average price of around US9,500 per tonne for material used in cells for Western OEMs...
A reminder of a 2016 Elon Musk quote:
Our cells should be called Nickel-Graphite, because primarily the cathode is nickel and the anode side is graphite with silicon oxide.
UBS's EV metals demand forecast (from Nov. 2020)
2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 - Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, And Copper 2x to 3x
BMI forecasts graphite deficits to begin from 2022 as demand for graphite grows strongly
On March 31 Seeking Alpha reported:
Biden invokes Defense Production Act to boost EV battery production...the Biden administration officially said Thursday it will use the Defense Production Act to boost domestic production of critical materials for batteries needed to power electric vehicles and the transition to renewable energy. The decision adds lithium, nickel, cobalt, graphite and manganese to a list of covered items, which could help mining companies access $750M under the Act's Title III fund.
On March 31 the AFR reported: "US agrees to fund Australian critical minerals projects."
Canadian miners cheer Ottawa's critical minerals budget plan. Canadian miners say Ottawa's plan to spend C$3.8 billion ($3.02 billion) to boost domestic production of lithium, copper and other strategic minerals should help propel the country's efforts to become a key part of the global electric vehicle supply chain.
On April 19 Business Insider reported:
Rivian CEO warns the looming EV battery shortage will make the chip shortage feel like 'a small appetizer' for what's to come...Elon Musk has repeatedly warned battery supplies could impact electric car production...Now, automakers looking to branch out into electric cars could face a critical shortage of EV batteries, as well as the metals required to produce the roughly 1,000 pound lithium-ion batteries. "Put very simply, all the world's cell production combined represents well under 10% of what we will need in 10 years," Scaringe said, according to The Journal. "Meaning, 90% to 95% of the supply chain does not exist," he added.
On April 21 Fastmarkets reported: "Tight supply drives up European flake, amorphous graphite prices."
On April 26 Fastmarkets reported: "Hebei Kuntian starts work on 200,000-tpy graphite anode project in Yunnan."
I have not covered the following graphite producers as they are not typically accessible to most Western investors. They include - Aoyu Graphite Group, BTR New Energy Materials, Qingdao Black Dragon, National de Grafite, Shanshan Technology, and LuiMao Graphite.
Note: AMG Advanced Metallurgical Group NV [NA:AMG] [GR:ADG] (OTCPK:AMVMF) is also a "diversified producer", producing graphite and lithium. SGL Carbon (OTCPK:SGLFF) is a synthetic graphite producer and Novonix [ASX:NVX] (OTCQX:NVNXF) is commercializing their synthetic graphite product. Graphex Group Limited [HK:6128] (OTCQX:GRFXY) makes spherical graphite.
Syrah Resources Limited [ASX:SYR][GR:3S7](OTCPK:SYAAF)(OTC:SRHYY)
Syrah Resources Limited owns the Balama graphite mine in Mozambique. Syrah is also working to become a vertically integrated producer of natural graphite Active Anode Material (“AAM”) at their Vidalia facility, Louisiana, USA.
On April 6, Syrah Resources announced: "Syrah approves Balama solar and battery system final investment decision."
On April 19, Syrah Resources announced: "Syrah offered a conditional commitment from the US Department of Energy following finalisation of a non-binding term sheet for US$107 million loan." Highlights include:
You can view the latest investor presentation here.
Ceylon Graphite [TSXV:CYL] [GR:CCY] (OTC:CYLYF)
Ceylon Graphite has 'Vein graphite' production out of one mine in Sri Lanka with 121 square kilometers of tenements.
On April 7, Ceylon Graphite announced:
Ceylon Graphite announces $3 million private placement. Ceylon intends to use the net proceeds of the Offering to advance the Corporation’s K1 and M1 mines to commercial production...
Mineral Commodities Ltd. ("MRC") [ASX:MRC]
Skaland Graphite is 90% owned by MRC. Skaland is the highest grade flake graphite operation in the world and largest producing mine in Europe; with immediate European graphite production of up to 10,000 tonnes per annum with regulatory approval to increase to 16,000. MRC plans to demerge its Norwegian graphite assets into a newly incorporated Norway company branded as Ascent Graphite.
On April 7, Mineral Commodities Ltd. announced:
Electromagnetic survey results indicate excellent new targets at Munglinup Graphite Project...Twelve new priority targets identified from airborne survey, associated with previously recognised graphite bearing structures: 7 targets adjacent to previous drilled mineralisation. 5 new zones of potential mineralisation. 3,000m resource drilling planned for 2022.
On April 19, Mineral Commodities Ltd. announced: "Successful Critical Minerals grant application for developing an Australian Integrated Ore-to-Battery Anodes Business." Highlights include:
On March 31, Tirupati Graphite announced: "
Sahamamy Project development update...on the expansion of the Sahamamy primary graphite project. The construction of the 18,000 tonnes per annum ("ktpa") second module to increase the Company's flake graphite capacity in Madagascar to 30ktpa remains on track to enter production in H2 calendar year 2022. The completion of the expansion at Sahamamy will be a material step towards the mid-term target of increasing Tirupati's production capacity to 84,000 tpa by the end 2024.
Northern Graphite [TSXV:NGC][GR:ONG] (OTCQX:NGPHF) (potential to be a North American graphite producer very soon)
Northern Graphite has agreed to purchase from Imerys the Lac des Iles producing graphite mine in Quebec and the Okanjande graphite deposit/Okorusu processing plant in Namibia. They also own the Bissett Creek graphite project located 100km east of North Bay, Ontario, Canada and close to major roads and infrastructure. The Company has completed an NI 43-101 Bankable final Feasibility Study and received its major environmental permit.
On March 30, Northern Graphite announced:
Northern Graphite well positioned to benefit from new critical minerals developments in Ontario. “The move towards a green economy has been called a once in a lifetime opportunity and jurisdictions around the world are competing for the investment that is required and the jobs that will be created,” said Northern Graphite CEO, Greg Bowes. “Financial support from the Ontario government has been critical to attracting these EV and battery manufacturing plants to the province and it is essential that investment also flows into the mineral projects needed to supply them,” he added.
You can view the latest investor presentation here and my recent Trend Investing article on Northern Graphite here.
Westwater Resources Inc. is developing an advanced battery graphite business in Alabama. The Coosa Graphite Plant (2023 production start) plans to source natural graphite initially from non-China suppliers and then from the USA from 2028.
On April 19, Westwater Resources Inc. announced:
Westwater Resources and Alabama Graphite products break ground on Kellyton Processing Plant. The $202 million plant, which is being built in the Lake Martin Regional Industrial Park just off U.S. 280 in Coosa County, will process raw graphite into refined, battery-grade graphite for use in batteries that power electric vehicles (EVs), electronics and many other products...
You can view the latest investor presentation here.
Gratomic Inc. [TSXV:GRAT] [GR:CB82 ] (OTCQX:CBULF)
Gratomic’s Aukam Graphite Project is located in Namibia, Africa. The Project is undergoing 'operational readiness'. Gratomic is also collaborating with Forge Nano to to develop a second facility for graphite micronization and spheronization.
On April 6, Gratomic Inc. announced:
Gratomic signs new project agreement...with the National Research Council of Canada [NRC] to evaluate the performance of spherical graphite samples extracted and supplied by Gratomic...
On April 12, Gratomic Inc. announced:
Gratomic signs Definitive Agreement to Acquire a 100% interest in 3 Mining Licences in Brazil adjacent to the Capim Grosso Property.
On April 21, Gratomic Inc. announced:
Gratomic announces Product in Bag (PIB) from its Aukam project in Namibia...This material will be sent to SGS Lakefield for product development in the fulfillment of the Company’s obligation to modify the product to suit the needs of the end users...
Walkabout Resources Ltd [ASX:WKT]
No news for the month.
Black Rock Mining [ASX:BKT] (OTCPK:BKTRF)
On April 26, Black Rock Mining announced: "March 2022 quarterly activities report." Highlights include:
NextSource Materials Inc. [TSX:NEXT] [GR:1JW] (OTCQB:NSRCF)
NextSource Materials Inc. is a mine development company based in Toronto, Canada, that's developing its 100%-owned, Feasibility-Stage Molo Graphite Project in Madagascar. The Company also has the Green Giant Vanadium Project on the same property. The Molo mine is fully-funded and scheduled to commission in March, 2022.
No news for the month.
Investors can view the latest company presentation here.
Nouveau Monde Graphite [TSXV:NOU] (OTCQX:NMGRF) (NYSE:NMG)
Nouveau Monde Graphite own the Matawinie graphite project, located in the municipality of Saint-Michel-des-Saints, approximately 150 km north of Montreal, Canada.
On March 25, Nouveau Monde Graphite announced: "NMG provides a quarterly update and releases its annual report – disciplined execution of the Company’s Business Plan." Highlights include:
On March 31, Nouveau Monde Graphite announced: "NMG furthers its value-added graphite coating efforts and obtains renewed support from the Government of Canada." Highlights include:
You can view the latest investor presentation here.
Greenwing Resources Limited [ASX:GW1] (OTCPK:BSSMF) (formerly Bass Metals [ASX:BSM]
On April 13, Greenwing Resources Limited announced: "Graphmada Graphite Mining Complex D rilling Program completed." Highlights include:
On April 20, Greenwing Resources Limited announced: "San Jorge Lithium Project update – initial drill program, additional geophysics and Direct Lithium Extraction (DLE) analysis."
You can view the latest company presentation here.
Triton Minerals [ASX:TON][GR:1TG]
Triton Minerals Ltd. engages in the acquisition, exploration and development of areas that are highly prospective for gold, graphite and other minerals. The company was founded on March 28, 2006 and is headquartered in West Perth, Australia. Triton has two large graphite projects in Mozambique, not far from Syrah Resources Balama project.
On March 31, Triton Minerals announced: "Annual report f or the year ended 31 December 2021."
On April 6, Triton Minerals announced: "Amended announcement - Power solution MoU for Ancuabe Project." Highlights include:
You can view the latest investor presentation here and my article on Trend Investing here.
Magnis Energy Technologies Ltd [ASX:MNS] (OTCPK:MNSEF)
Magnis is an Australian based company that has rapidly moved into battery technology and is planning to become one of the world's largest manufacturers of lithium-ion battery cells. Magnis has a world class graphite deposit in Tanzania known as the Nachu Graphite Project.
On March 31, Magnis Energy Technologies Ltd. announced: "Exciting extra fast charging battery results continue ." Highlights include:
On April 19, Magnis Energy Technologies Ltd. announced: "iM3NY completes US$100 million intellectual property-based financing in collaboration with Aon and Atlas Credit Partners ."
On April 26, Magnis Energy Technologies Ltd. announced: "New York lithium-ion battery plant update ." Highlights include:
Eagle Graphite [TSXV:EGA] (OTCPK:APMFF)
The Black Crystal Project is located in the Slocan Valley area of British Columbia, Canada, 35km West of the city of Nelson, and 70km North of the border to the USA. The quarry and plant areas are the project’s two main centers of activity.
No news for the month.
Mason Graphite [TSXV:LLG] [GR:M01] (OTCQX:MGPHF)
Mason Graphite is a Canadian graphite mining and processing company focused on the development of the Lac Guéret project located in northeastern Quebec, where the graphite grade is believed by management to be among the highest in the world. Mason Graphite also owns 66.67% of Black Swan Graphene.
No news for the month.
You can view the latest investor presentation here.
Talga Group [ASX:TLG] [GR:TGX] (OTCPK:TLGRF)
Talga Group is a technology minerals company enabling stronger, lighter and more functional materials for the multi-billion dollar global coatings, battery, construction and carbon composites markets using graphene and graphite. Talga 100% owned graphite deposits are in Sweden, proprietary process test facility is in Germany.
On March 31, Talga Group announced:
Europe’s first Li - ion battery anode plant successfully commissioned and operating. Talga has successfully commissioned and is now operating its Electric Vehicle Anode (EVA) qualification plant in northern Sweden to supply coated anode for battery customer qualification...More than 20 battery manufacturers and automotive customers engaged to receive Talnode® -C samples for large-scale EV battery qualification and procurement processes.
On April 14, Talga Group announced: "New drilling of Europe’s largest graphite resource commence s."
On April 21, Talga Group announced: "Major p ermitting m ilestone for Talga’s Vittangi Graphite Project." Highlights include:
You can view the latest investor presentation here.
SRG Mining Inc. [TSXV:SRG] [GR:18Y] [Formerly SRG Graphite Inc.]
SRG is focused on developing the Lola graphite deposit, which is located in the Republic of Guinea, West Africa. The Lola Graphite occurrence has a prospective surface outline of 3.22 km2 of continuous graphitic gneiss, one of the largest graphitic surface areas in the world. SRG owns 100% of the Lola Graphite Project.
On March 31, SRG Mining Inc. announced: "SRG completes strategic equity investment of C$13 million from La Mancha."
On April 25, SRG Mining Inc. announced: "SRG announces conversion of Sprott convertible debt."
You can view the latest investor presentation here.
Leading Edge Materials [TSXV:LEM] (OTCQB:LEMIF)
Leading Edge Materials Corp. is a Canadian company focused on becoming a sustainable supplier of a range of critical materials. Leading Edge Materials’ flagship asset is the Woxna Graphite Project and processing plant in central Sweden. The company also owns the Norra Karr REE project, and the 51% of the Bihor Sud Nickel-Cobalt exploration stage project in Romania.
On March 31, Leading Edge Materials Corp. announced:
Leading Edge Materials Norra Karr exploration license remains in full force after court decision. Filip Kozlowski, CEO of the Company states: “We have again successfully defended our exclusive tenure over the Norra Karr exploration license...
Investors can view the latest company presentation here.
Renascor Resources [ASX:RNU](OTC:RSNUF)
Renascor Resources Ltd. is an Australian exploration company, which focuses on the discovery and development of economically viable deposits containing uranium, gold, copper, and associated minerals. Its projects include graphite, copper, precious metals, and uranium.
On March 28, Renascor Resources announced: "Siviour Battery Anode Material Project - Project u pdate. Advancing toward final investment decision for the world’s first integrated, in - country mine and Purified Spherical Graphite operation outside of China." Highlights include:
On April 26, Renascor Resources announced:
Renascor raises $6 5 million via successful Placement to Institutional Investors. F unds to accelerat e expansion and development of the Siviour Battery Anode Material Project.
You can view the latest investor presentation here.
EcoGraf Limited [ASX:EGR] [FSE:FMK] (ECGFF)
No news for the month.
You can view the latest investor presentation here.
Lomiko Metals Inc. [TSXV:LMR] (OTCQB:LMRMF)
Lomiko has two projects in Canada - La Loutre graphite Project (flagship) (100% interest) and the Bourier lithium Project (70% earn in interest).
On April 22, Lomoko Metals Inc. announced:
Lomiko announces receipt of exploration drilling permits for its La Loutre Graphite Project and appointment of Anne Chabot as Strategic Advisor.
Zentek Ltd. [TSXV:ZEN] (OTCPK:ZENYF) (formerly ZEN Graphene Solutions Ltd.)
On March 30, Zentek Ltd. announced:
"Zentek announces partnership with FTI consulting to support U.S. expansion strategy. “Zentek’s partnership with FTI will help the Company expand its presence in the U.S. market in a number of ways, including with the regulatory approval process for our nanotechnologies,” said Greg Fenton, CEO of Zentek. “We are excited to work with FTI to expand Zentek’s presence into the U.S.”.
On April 11, Zentek Ltd. announced: "Zentek announces start of Phase Two testing of ZenGUARD™ - Coated filters under ISC testing stream contract..."
On April 12, Zentek Ltd. announced: "Zentek signs supply agreement with EkoMed Global Inc. to manufacture ZenGUARD™ - enhanced PPE."
On April 18, Zentek Ltd. announced:
Zentek engages the Benchmark Company to explore and advise on strategic options for Albany deposit.
South Star Battery Metals [TSXV:STS] (OTCQB:STSBF)
South Star Battery Metals owns the Santa Cruz Graphite Project in Brazil with a Phase 1 commercial production target for Q4 2022. Plus the right to earn-in to up to 75% for the Graphite Project in Coosa County, Alabama.
On April 5, South Star Battery Metals announced:
South Star Battery Metals announces US$28 million streaming agreement with Sprott Resource Streaming and Royalty Corp for the Santa Cruz Graphite Project in Brazil.
Sovereign Metals [ASX:SVM] [GR:SVM][LSE:SVML]
Sovereign Metals Ltd. is an exploration company, which engages in the explorations of graphite, copper and gold resources. It operates through the Queensland, Australia and Malawi geographical segments. Sovereign Metals has world's biggest graphite saprolith resource of 65m tonnes at 7.1% TGC at their Maligunde project in Malawi.
On March 31, Sovereign Metals announced: "Kasiya's low carbon graphite presented at UK Parliament." Highlights include:
You can view the latest investor presentation here.
Armadale Capital [AIM:ACP], BlackEarth Minerals [ASX:BEM], Black Rock Mining, DNI Metals [CSE:DNI] (OTCPK:DMNKF), Eagle Graphite [TSXV:EGA] [GR:NJGP] (OTC:APMFF), Electric Royalties [TSXV:ELEC], Focus Graphite [TSXV:FMS][GR:FKC] (OTCQB:FCSMF), Graphite One Resources Inc. [TSXV:GPH] [GR:2JC] (OTCQX:GPHOF), Green Battery Minerals Inc. [TSXV:GEM] (OTCQB:GBMIF), International Graphite [ASX:IG6], Metals Australia [ASX:MLS], New Energy Metals Corp. [ASX:NXE], Volt Resources [ASX:VRC] [GR:R8L].
April saw very slightly higher flake graphite prices.
Highlights for the month were:
As usual, all comments are welcome.
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This article was written by
Disclosure: I/we have a beneficial long position in the shares of SYRAH RESOURCES [ASX:SYR], TRITON MINERALS [ASX:TON], AMG ADVANCED METALLURGICAL GROUP NV [AMS:AMG], MAGNIS ENERGY TECHNOLOGIES [ASX:MNS], ZENTEK LTD [TSXV:ZEN], LEADING EDGE MATERIALS [TSXV:LEM], METALS AUSTRALIA [ASX:MLS] either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: The information in this article is general in nature and should not be relied upon as personal financial advice.