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Welcome to the January edition of the graphite miners news.
January saw a slower month of news but generally positive news from the graphite juniors.
During the past 30 days the China graphite flake-194 EXW spot price was not updated, however graphite flake-194 EXW (FOB China) was up 0.32%. 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 down 2.19% the past 30 days.
Graphite prices got off to a slow start to 2023, with prices receding under the pressure of weakening demand, despite seasonally reduced graphite output. In China, while flake graphite prices are maintaining stability on lower supply in line with seasonal production outages, spherical graphite prices are declining in response to reduced demand from the EV battery sector.
Fastmarkets reported on January 23, 2023 that China graphite flake (94% C -100 mesh) prices were at ~US$830/t and Europe graphite flake (94% C -100 mesh) prices were at US$775/t. China spherical graphite (99.95% C, 15 microns, FOB) prices were US$2,500-2,800.
Fastmarkets flake graphite (94% C -100 mesh) (gold) and spherical graphite (purple) prices 2022 and January 2023 (source)
Note: You can read about the different types of graphite and their uses here.
Trend Investing v IEA demand forecast for EV metals (Trend Investing) (IEA)
Trend Investing & the IEA
Trend Investing & the IEA
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
2022 - BMI forecasts graphite deficits to begin from 2022 as demand for graphite grows strongly
2022 - BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand - 97 new 56,000tpa natural flake graphite mines
On January 4 Investing News reported:
Graphite market forecast: Top trends that will affect graphite in 2023.....Graphite is an essential raw material used in electric vehicle (EV) batteries, and as sales of EVs continue to grow, market watchers believe demand for the battery metal will surge.......Despite discussions on battery chemistry changes and new technological breakthroughs, many experts think graphite will remain a dominant element in EV batteries for at least the next decade......."OEMs and cell manufacturers urgently need to find vertically integrated graphite projects that have capacity to supply them with anode material outside of the Chinese supply chain." Brent Nykoliation, Executive Vice President of Nextsource Materials.......In order to meet this unprecedented demand, Benchmark Mineral Intelligence estimates that up to 150 new operations across natural and synthetic graphite are needed by 2035...... "We've seen growth rates in 2021 and 2022 at around 40 percent year-over-year.".......By 2030, Benchmark Mineral Intelligence is forecasting that natural graphite anode material supply will grow by 95 percent, with demand increasing by 450 percent in the same time period....... (Fastmarkets) the firm is calling for the natural graphite market to remain largely in deficit until 2025, with the outlook being dependent on increased graphite production, primarily in China and Mozambique. "The addition of new capacity has already faced significant delays, however, and we expect continued struggles for many new entrants, with an appreciable influx of new supply not expected to hit the market - and to remedy the growing underlying supply/demand imbalance - before 2025," Bennett said. Fastmarkets expects to see an increasingly dynamic graphite market in 2023, with notably higher prices next year. "This will reflect both incredible underlying market demand and higher costs associated with graphite production
On January 12 Mining.com reported:
Metals prices could spike with markets so tight, Trafigura says....His comments come as mining executives warn that much more investment is needed to ensure the world has enough supplies of energy-transition metals in the next decade.....
We expect graphite prices to remain vulnerable in the near term and trend stable to lower through January. In China, we expect to see prices for battery precursor material remain subdued reflecting slower EV demand in response to both changes to Chinese government subsidiaries for the EV industry, which are expected to increase EV prices for Chinese consumers, and the upcoming Lunar New Year holiday period. Declining freight rates and subdued demand from traditional consumers will also cap near-term European graphite prices. We may see a revival in graphite prices in China in the post-holiday period as activity resumes, but given expectations of slower EV sales, a price revival during the first quarter of 2023 is not guaranteed.
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 [AMS:AMG] [GR:ADG] (OTCPK:AMVMF) is also a "diversified producer", producing graphite, vanadium, 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.
No significant news for the month.
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.
No news for the month.
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 January 6 Mineral Commodities Ltd. announced: "CEO resigns. Stays on in an advisory role. Managing director & CEO Jacob Deysel resigns: MRC announces leadership change."
On January 18 Mineral Commodities Ltd. announced: "Skaland Graphite AS successful with EU Horizon funding." Highlights include:
On December 29 Tirupati Graphite announced: "Unaudited half-yearly results." Highlights include:
Construction and Development continued across the two projects with activities focussed on: Progressing development of Sahamamy 18,000 tpa new mining and processing facilities alongside development of hydro power plant. Development and operationalisation of first 'pre concentrate' unit at the mine pit head at the Vatomina project and start of construction of the second pre concentrate plant. Strengthening of road infrastructure throughout the Company's networks across the two projects measuring c. 50 kilometres ("km")....."
Northern Graphite [TSXV:NGC][GR:ONG] (OTCQX:NGPHF)
Northern Graphite purchased 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 January 10 Northern Graphite reported:
Northern Graphite enters agreement to select a site for construction of North America's largest battery anode material plant.....has entered into an agreement with Innovation et Development Manicouagan ("IDM") at Baie-Comeau, Quebec to evaluate sites for the construction of a planned 200,000 tonnes per year ("tpy") battery anode material ("BAM") plant in the industrial port zone of Baie-Comeau. The plant would be one of the largest in the world and would convert graphite concentrate from the Company's mines, as well as other producers, into anode material to supply existing and planned lithium-ion battery manufacturing plants throughout North America.
On January 10 Northern Graphite reported:
Northern Graphite and Graphex Technologies join forces on large-scale graphite processing facility site evaluations in Baie-Comeau.
You can view the latest investor presentation here and the very recent Trend Investing article on Northern Graphite here or a Trend Investing CEO interview here.
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 December, 2022.
No news for the month.
Investors can view the latest company presentation here or the latest Trend Investing article 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 January 11 Talga Group announced:
Verkor and Talga sign non-binding Letter of Intent for Swedish battery anode supply.....Talga is allocating its planned anode production across offtake supply agreements in support of the Company's project financing strategy, focusing on European customers.....
On January 17 Talga Group announced: "Talga opens UK Centre of Excellence for battery material technology....."
You can view the latest investor presentation 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 January 5 Westwater Resources announced:
Westwater Resources announces Letter of Intent for sale of Ultra-PMG™ representing more than 25% of the expected annual Ultra-PMG™ output from the Kellyton Plant. Graphite sales continuing across all product lines.
You can view the latest investor presentation here.
Magnis Energy Technologies Ltd [ASX:MNS] (OTCQX: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 January 3 Magnis Energy Technologies Ltd. announced: New York lithium-ion battery plant update." Highlights include:
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 also 100% own the Capim Grosso Graphite Project in Brazil. Gratomic is also collaborating with Forge Nano to develop a second facility for graphite micronization and spheronization.
No news for the month.
Black Rock Mining [ASX:BKT]
On January 23 Black Rock Mining announced: "December 2022 quarterly activities report." Highlights include:
Nouveau Monde Graphite [TSXV:NOU] (NYSE:NMG) and Mason Graphite [TSXV:LLG] [GR:M01] (OTCQX:MGPHF)
Nouveau Monde Graphite ("NMG") own the Matawinie graphite project, located in the municipality of Saint-Michel-des-Saints, approximately 150 km north of Montreal, Canada. NMG (51%) and Mason Graphite (49%) have agreed to JV (subject to approvals) on the Lac Guéret Project.
On January 2 Nouveau Monde Graphite announced: "NMG capitalizes accrued interests....."
On January 10 Nouveau Monde Graphite announced: "NMG issues positive results of its Preliminary Economic Assessment for the Uatnan Mining Project - One of the World's Largest Graphite Projects in development with indicative NPV in excess of C$2 billion." Highlights include:
On January 18 Nouveau Monde Graphite announced: "NMG announces the engagement of Red Cloud Securities and specifies the grant of consultant options."
You can view the latest investor presentation here.
Greenwing Resources Limited [ASX:GW1] (OTCPK:BSSMF)
.......it has completed the placement of 21,818,182 fully paid ordinary shares to NIO for in aggregate A$12,000,000. Greenwing has also granted a call option to NIO to acquire, at NIO's election, between 20% to 40% of the issued capital of Andes Litio SA, which holds options rights over the San Jorge Lithium Project. As at completion, NIO holds a shareholding of 14.7% based on the Company's current issued capital.
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.
No news for the month.
You can view the latest investor presentation here and the latest article on Trend Investing here.
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.
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 January 18 SRG Mining Inc. announced:
SRG announces update on financing, offtake and strategic partnerships near completion of studies to double mine production and establish downstream processing facility.....of the Lola Graphite Project in the Republic of Guinea (the "Lola Graphite Project") into a fully integrated supplier of battery anode material.......The integrated business model would result in the creation of a mine-to-market active anode material producer, hosting a large high-purity graphite production mine and concentrator in Africa and a value-added, coated spherical purified graphite ("CSPG") conversion facility in Europe or North America......The Company is advancing discussions with multiple parties who have expressed interest in providing financing to advance SRG towards first production.......In addition to the existing offtake agreements, several Western and Asian parties have also expressed interest in a significant and long-term offtake agreement for the Lola Graphite Project concentrate production.
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.
Investors can view the latest company presentation here.
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.
No significant news for the month.
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 January 9 Lomiko Metals Inc. announced: "Lomiko's shoulder sampling outlines 210.9 meters of graphite mineralization grading 7.09% Cg at La Loutre Graphite property in Québec." Highlights include:
Focus Graphite [TSXV:FMS][GR:FKC] (OTCQB:FCSMF)
No significant news for the month.
No significant news for the month.
You can view an August 2022 Metals Australia update video here.
Sovereign Metals [ASX:SVM] [GR:SVM][LSE:SVML] - Plan to demerge graphite assets to a 100% owned subsidiary NGX Limited
No significant news for the month.
You can view the latest investor presentation here.
Sarytogan Graphite has a 209mt @ 28.5% TGC Inferred Resource (60mt contained graphite) in Central Kazakhstan.
On January 16 Sarytogan Graphite announced: "2022 drilling results increase confidence." Highlights include:
On January 25 Sarytogan Graphite announced: "Quarterly activities/appendix 5B cash flow report." Highlights include:
Evion Group NL [ASX:EVG] - (Formerly BlackEarth Minerals [ASX:BEM])
On January 17 Evion Group NL announced: "Battery anode scoping study produces compelling results."
Zentek Ltd. [TSXV:ZEN] (ZTEK)(formerly ZEN Graphene Solutions Ltd.)
On January 19 Zentek Ltd. announced:
Zentek signs distribution agreement with Southmedic Inc... for the distribution of Zentek's patented ZenGUARD™ surgical masks... to the Canadian hospital, general practitioner, private surgery, long-term care and nursing home markets.
Armadale Capital [AIM:ACP], BlackEarth Minerals [ASX:BEM], DNI Metals [CSE:DNI] (OTC:DMNKF), Eagle Graphite [TSXV:EGA] [GR:NJGP] (OTC:APMFF), Elcora Advanced Materials Corp. [TSXV:ERA] (OTCPK:ECORF), Electric Royalties [TSXV:ELEC], Graphite One Resources Inc. [TSXV:GPH] [GR:2JC] (OTCQX:GPHOF), Green Battery Minerals Inc. [TSXV:GEM] (OTCQB:GBMIF), Infinity Stone Ventures [CSE:GEMS] (OTCQB:GEMSF), International Graphite [ASX:IG6], New Energy Metals Corp. [ASX:NXE], Volt Resources [ASX:VRC] [GR:R8L], South Star Battery Metals [TSXV:STS] (OTCQB:STSBF), Walkabout Resources Ltd [ASX:WKT].
January saw flat flake graphite prices and slightly lower spherical graphite prices.
Highlights for the month were:
As usual, all comments are welcome.
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Disclosure: I/we have a beneficial long position in the shares of SYRAH RESOURCES [ASX:SYR], AMG ADVANCED METALLURGICAL GROUP NV [AMS:AMG], MAGNIS ENERGY TECHNOLOGIES [ASX:MNS], ZENTEK LTD [TSXV:ZEN], LEADING EDGE MATERIALS [TSXV:LEM], TRITON MINERALS [ASX:TON], METALS AUSTRALIA OPTIONS [ASX:MLSOD] 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.
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